Senate Bill sb2492

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    Florida Senate - 2003                                  SB 2492

    By Senator Garcia





    40-1485A-03

  1                      A bill to be entitled

  2         An act relating to economic development;

  3         reenacting and amending s. 288.9515, F.S.;

  4         revising and clarifying powers of Enterprise

  5         Florida, Inc., to develop authorized technology

  6         development programs; deleting a preference

  7         requirement for contractor selections;

  8         clarifying a requirement for capitalization of

  9         a technology development financing fund;

10         revising criteria and requirements for

11         investment of moneys in the Florida Technology

12         Research Investment Fund; providing for payment

13         of claims against the program from the fund;

14         specifying nonapplication of state credit or

15         taxing power; specifying absence of state

16         liability for certain claims; directing

17         Enterprise Florida, Inc., to facilitate the

18         formation of investor networks; repealing s.

19         288.9517, F.S., relating to audits of the

20         technology development board and

21         confidentiality of the identity of certain

22         contributors to the board; repealing s. 14, ch.

23         93-187, Laws of Florida, relating to the future

24         repeal and review by the Legislature of

25         statutes governing certain technology

26         development programs of Enterprise Florida,

27         Inc.; providing an effective date.

28  

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

30  

31  

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    Florida Senate - 2003                                  SB 2492
    40-1485A-03




 1         Section 1.  Notwithstanding section 14 of chapter

 2  93-187, Laws of Florida, section 288.9515, Florida Statutes,

 3  shall not stand repealed on December 31, 2003, as scheduled by

 4  such law, but that section is reenacted and amended to read:

 5         288.9515  Authorized technology development programs.--

 6         (1)  Enterprise Florida, Inc., may create technology

 7  development and applications services, and may serve as an

 8  umbrella organization for the coordination of information that

 9  provides technology applications service providers throughout

10  the state which provide critical, managerial, technological,

11  scientific, and related financial and business expertise

12  essential for international and domestic competitiveness to

13  small-sized and medium-sized manufacturing and knowledge-based

14  service firms. Enterprise Florida, Inc., is authorized the

15  following powers in order to carry out these functions:

16         (a)  Providing communication and coordination services

17  among technology development and applications service

18  providers throughout the state.

19         (b)  Providing coordinated marketing services to

20  small-sized and medium-sized manufacturers in the state on

21  behalf of, and in partnership with, technology applications

22  service providers.

23         (b)(c)  Securing additional sources of funds on behalf

24  of, and in partnership with, technology-based businesses

25  applications service providers.

26         (c)(d)  Developing plans and policies to assist

27  small-sized and medium-sized manufacturing companies or other

28  knowledge-based firms in Florida.

29         (e)  Entering into contracts with technology

30  applications service providers for expanded availability of

31  high-quality assistance to small-sized and medium-sized

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    Florida Senate - 2003                                  SB 2492
    40-1485A-03




 1  manufacturing companies or knowledge-based service firms,

 2  including, but not limited to, technological, human resources

 3  development, market planning, finance, and interfirm

 4  collaboration. Enterprise Florida, Inc., shall ensure that all

 5  contracts in excess of $20,000 for the delivery of such

 6  assistance to Florida firms shall be based on competitive

 7  requests for proposals and shall establish clear standards for

 8  the delivery of services under such contracts. Such standards

 9  include, but are not limited to:

10         1.  The ability and capacity to deliver services in

11  sufficient quality and quantity.

12         2.  The ability and capacity to deliver services in a

13  timely manner.

14         3.  The ability and capacity to meet the needs of firms

15  in the proposed market area.

16         (d)(f)  Assisting other educational institutions,

17  enterprises, or the entities providing business assistance to

18  small-sized and medium-sized manufacturing and knowledge-based

19  services enterprises.

20         (g)  Establishing a system to evaluate the

21  effectiveness and efficiency of technology applications

22  services provided to small-sized and medium-sized enterprises.

23         (e)(h)  Establishing special education and

24  informational programs for Florida enterprises and for

25  educational institutions and enterprises providing business

26  assistance to Florida enterprises.

27         (f)(i)  Assisting in evaluating and documenting the

28  needs of firms in this state for technology development and

29  application services, and developing means to ensure that

30  these needs are met, consistent with the powers provided for

31  in this subsection.

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    Florida Senate - 2003                                  SB 2492
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 1         (g)(j)  Maintaining an office in such place or places

 2  as the board of directors of Enterprise Florida, Inc.,

 3  approves.

 4         (h)(k)  Making and executing contracts with any person,

 5  enterprise, educational institution, association, or any other

 6  entity necessary or convenient for the performance of its

 7  duties and the exercise of the powers and functions of

 8  Enterprise Florida, Inc., under this subsection.

 9         (i)(l)  Receiving funds from any source to carry out

10  the purposes of providing technology development and

11  applications services, including, but not limited to, gifts or

12  grants from any department, agency, or instrumentality of the

13  United States or of the state, or any enterprise or person,

14  for any purpose consistent with the provisions of this

15  subsection.

16         (2)  When choosing contractors under this section,

17  preference shall be given to existing institutions,

18  organizations, and enterprises so long as these existing

19  institutions, organizations, and enterprises demonstrate the

20  ability to perform at standards established by Enterprise

21  Florida, Inc., under paragraph (1)(e). Neither the provisions

22  of ss. 288.9511-288.9517 nor the actions taken by Enterprise

23  Florida, Inc., under this section shall impair or hinder the

24  operations, performance, or resources of any existing

25  institution, organization, or enterprise.

26         (3)  Enterprise Florida, Inc., may create a technology

27  development financing fund, to be called the Florida

28  Technology Research Investment Fund. The fund shall increase

29  technology development in this state by investing in

30  technology development projects that have the potential to

31  generate investment-grade technologies of importance to the

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    Florida Senate - 2003                                  SB 2492
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 1  state's economy as evidenced by the willingness of private

 2  businesses to coinvest in such projects. Enterprise Florida,

 3  Inc., may also demonstrate and develop effective approaches

 4  to, and benefits of, commercially oriented research

 5  collaborations between businesses, universities, and state and

 6  federal agencies and organizations. Enterprise Florida, Inc.,

 7  shall endeavor to maintain the fund as a self-supporting fund

 8  once the fund is sufficiently capitalized under Enterprise

 9  Florida, Inc., program guidelines as reflected in the minimum

10  funding report required in s. 288.9516. The technology

11  research investment projects may include, but are not limited

12  to:

13         (a)  Technology development projects expected to lead

14  to a specific investment-grade technology that is of

15  importance to industry in this state.

16         (b)  Technology development centers and facilities

17  expected to generate a stream of products and processes with

18  commercial application of importance to industry in this

19  state.

20         (c)  Technology development projects that have, or are

21  currently using, other federal or state funds such as federal

22  Small Business Innovation Research awards.

23         (4)  Enterprise Florida, Inc., shall invest moneys

24  contained in the Florida Technology Research Investment Fund

25  in technology application research or for technology

26  development projects that have the potential for commercial

27  market application. The partnership shall coordinate any

28  investment in any space-related technology projects with the

29  Florida Space Authority and the Technological Research and

30  Development Authority.

31  

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    Florida Senate - 2003                                  SB 2492
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 1         (a)  The investment of moneys contained in the Florida

 2  Technology Research Investment Fund is limited to qualified

 3  investments in qualified securities in which a private

 4  enterprise in this state coinvests at least 40 percent of the

 5  total project costs, in conjunction with other cash or noncash

 6  investments from state educational institutions, state and

 7  federal agencies, or other institutions.

 8         (b)  All moneys in the Florida Technology Research

 9  Investment Fund shall be continuously appropriated to the Fund

10  and may be used for loan guarantees, letter of credit

11  guarantees, cash reserves for loan and letter of credit

12  guarantees, payments of claims pursuant to contracts for

13  guarantees, subordinated loans, loans with warrants, royalty

14  investments, equity investments, For the purposes of this

15  fund, qualified securities include loans, loans convertible to

16  equity, equity, loans with warrants attached that are

17  beneficially owned by the board, royalty agreements, or any

18  other contractual arrangements through which the Florida

19  Technology Research Investment Fund receives an interest,

20  rights, return of funds, or other consideration, and

21  operations of the Florida Small Business Technology Growth

22  Program. All such uses of funds are qualified investments in

23  which the board is providing scientific and technological

24  services to any federal, state, county, or municipal agency,

25  or to any individual, corporation, enterprise, association, or

26  any other entity involving technology development. Any claim

27  against the program shall be paid solely from the fund.

28  Neither the credit nor the taxing power of the state shall be

29  pledged to secure the fund or moneys in the fund, other than

30  from moneys appropriated or assigned to the fund, and the

31  

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    Florida Senate - 2003                                  SB 2492
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 1  state shall not be liable or obligated in any way for any

 2  claims against the fund or against Enterprise Florida, Inc.

 3         (c)  Not more than $175,000 or 5 percent of the

 4  revenues generated by investment of moneys contained in the

 5  Florida Technology Research Investment Fund plus 5 percent of

 6  the revenues generated by investments under The Florida Small

 7  Business Technology Growth Program, whichever is greater, may

 8  be used on an annual basis to pay operating expenses

 9  associated with operation of the Florida Technology Research

10  Investment Fund and the Florida Small Business Technology

11  Growth Program.

12         (d)  In the event of liquidation or dissolution of

13  Enterprise Florida, Inc., or the Florida Technology Research

14  Investment Fund, any rights or interests in a qualified

15  security or portion of a qualified security purchased with

16  moneys invested by the State of Florida shall vest in the

17  state, under the control of the State Board of Administration.

18  The state is entitled to, in proportion to the amount of

19  investment in the fund by the state, any balance of funds

20  remaining in the Florida Technology Research Investment Fund

21  after payment of all debts and obligations upon liquidation or

22  dissolution of Enterprise Florida, Inc., or the fund.

23         (e)  The investment of funds contained in the Florida

24  Technology Research Investment Fund does not constitute a

25  debt, liability, or obligation of the State of Florida or of

26  any political subdivision thereof, or a pledge of the faith

27  and credit of the state or of any such political subdivision.

28         (5)  Enterprise Florida, Inc., may create technology

29  commercialization programs in partnership with private

30  enterprises, educational institutions, and other institutions

31  to increase the rate at which technologies with potential

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    Florida Senate - 2003                                  SB 2492
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 1  commercial application are moved from university, public, and

 2  industry laboratories into the marketplace. Such programs

 3  shall be created based upon research to be conducted by

 4  Enterprise Florida, Inc.

 5         (6)  Enterprise Florida, Inc., shall coordinate with

 6  local and regional economic development organizations to

 7  facilitate the formation and growth of networks of individuals

 8  or businesses who may be willing to invest in start-up

 9  technology businesses in the state in order to help these

10  start-up businesses meet their needs for capital.

11         Section 2.  Section 288.9517, Florida Statutes, is

12  repealed.

13         Section 3.  Section 14 of chapter 93-187, Laws of

14  Florida, is repealed.

15         Section 4.  This act shall take effect July 1, 2003.

16  

17            *****************************************

18                          SENATE SUMMARY

19    Revises provisions authorizing Enterprise Florida, Inc.,
      to develop technology development programs. Revises
20    criteria and requirements for investing moneys in the
      Florida Technology Research Investment Fund. Provides for
21    payment of claims from the fund. Repeals provisions that
      require audits of the technology development board and
22    that provide for the confidentiality of the identity of
      certain contributors to the board. Requires that
23    Enterprise Florida, Inc., facilitate the formation of
      investor networks. (See bill for details.)
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