HB 0809 2003
1	A bill to be entitled
2	An act relating to economic stimulus; amending s. 212.052,
3	F.S.; exempting machinery and equipment used predominantly
4	for research and development; amending s. 212.08, F.S.;
5	revising sales price criteria for characterizing business
6	property; amending s. 212.097, F.S.; revising provisions
7	providing for an urban job tax credit program to apply to
8	designated urban job tax credit areas rather than high
9	crime areas; revising definitions, eligibility criteria,
10	application procedures and requirements, and area
11	characteristics and criteria; authorizing transfer of
12	unused credits; specifying use of transferred credits;
13	amending s. 220.191, F.S.; revising definitions; amending
14	s. 288.9515, F.S.; revising and clarifying powers of
15	Enterprise Florida, Inc., to develop authorized technology
16	development programs; deleting a preference requirement
17	for contractor selections; clarifying a requirement for
18	capitalization of a technology development financing fund;
19	revising criteria and requirements for investment of
20	moneys in the Florida Technology Research Investment Fund;
21	providing for payment of claims against the program from
22	the fund; specifying nonapplication of state credit or
23	taxing power; specifying absence of state liability for
24	certain claims; repealing s. 288.9517, F.S., relating to
25	audits of the technology development board and
26	confidentiality of the identity of certain contributors to
27	the board; providing an effective date.
28
29	Be It Enacted by the Legislature of the State of Florida:
30
31	Section 1. Subsection (2) of section 212.052, Florida
32	Statutes, is amended, subsections (3), (4) and (5) of said
33	section are renumbered as subsections (4), (5), and (6),
34	respectively, and a new subsection (3) is added to said section,
35	to read:
36	212.052 Research or development costs; exemption.--
37	(2) Notwithstanding any provision of this chapter to the
38	contrary, any person, including an affiliated group as defined
39	in s. 1504 of the Internal Revenue Code of 1954, as amended, who
40	manufactures, produces, compounds, processes, or fabricates in
41	any manner tangible personal property for such taxpayer's own
42	use directly and solely in research or development shall not be
43	subject to the tax imposed by this chapter upon the cost of the
44	product so manufactured, produced, compounded, processed, or
45	fabricated. However, the tax imposed by this chapter shall be
46	due on the purchase, rental, or repair of real property or
47	tangible personal property employed in research or development
48	which is subject to the tax imposed by this chapter at the time
49	of purchase or rental.
50	(3)(a) Machinery and equipment are exempt from the tax
51	imposed by this chapter if used predominately for research and
52	development activities. For purposes of this subsection,
53	"machinery and equipment" includes molds, dies, machine tooling,
54	other appurtenances or accessories to machinery and equipment,
55	testing equipment, test beds, computers, and software, whether
56	purchased or self-fabricated, and, if self-fabricated, includes
57	materials and labor for design, fabrication, and assembly.
58	(b) A business certified to receive this exemption may
59	elect to designate one or more state universities or community
60	colleges as recipients of up to 100 percent of the amount of the
61	exemption for which it may qualify. To receive these funds, the
62	institution must agree to match the funds so earned with
63	equivalent cash, programs, services, or other in-kind support on
64	a one-to-one basis in the pursuit of research and development
65	projects as requested by the certified business. The rights to
66	any patents, royalties, or real or intellectual property must be
67	vested in the business unless otherwise agreed to by the
68	business and the university or community college.
69	Section 2. Paragraph (h) of subsection (5) of section
70	212.08, Florida Statutes, is amended to read:
71	212.08 Sales, rental, use, consumption, distribution, and
72	storage tax; specified exemptions.--The sale at retail, the
73	rental, the use, the consumption, the distribution, and the
74	storage to be used or consumed in this state of the following
75	are hereby specifically exempt from the tax imposed by this
76	chapter.
77	(5) EXEMPTIONS; ACCOUNT OF USE.--
78	(h) Business property used in an enterprise zone.--
79	1. Business property purchased for use by businesses
80	located in an enterprise zone which is subsequently used in an
81	enterprise zone shall be exempt from the tax imposed by this
82	chapter. This exemption inures to the business only through a
83	refund of previously paid taxes. A refund shall be authorized
84	upon an affirmative showing by the taxpayer to the satisfaction
85	of the department that the requirements of this paragraph have
86	been met.
87	2. To receive a refund, the business must file under oath
88	with the governing body or enterprise zone development agency
89	having jurisdiction over the enterprise zone where the business
90	is located, as applicable, an application which includes:
91	a. The name and address of the business claiming the
92	refund.
93	b. The identifying number assigned pursuant to s. 290.0065
94	to the enterprise zone in which the business is located.
95	c. A specific description of the property for which a
96	refund is sought, including its serial number or other permanent
97	identification number.
98	d. The location of the property.
99	e. The sales invoice or other proof of purchase of the
100	property, showing the amount of sales tax paid, the date of
101	purchase, and the name and address of the sales tax dealer from
102	whom the property was purchased.
103	f. Whether the business is a small business as defined by
104	s. 288.703(1).
105	g. If applicable, the name and address of each permanent
106	employee of the business, including, for each employee who is a
107	resident of an enterprise zone, the identifying number assigned
108	pursuant to s. 290.0065 to the enterprise zone in which the
109	employee resides.
110	3. Within 10 working days after receipt of an application,
111	the governing body or enterprise zone development agency shall
112	review the application to determine if it contains all the
113	information required pursuant to subparagraph 2. and meets the
114	criteria set out in this paragraph. The governing body or agency
115	shall certify all applications that contain the information
116	required pursuant to subparagraph 2. and meet the criteria set
117	out in this paragraph as eligible to receive a refund. If
118	applicable, the governing body or agency shall also certify if
119	20 percent of the employees of the business are residents of an
120	enterprise zone, excluding temporary and part-time employees.
121	The certification shall be in writing, and a copy of the
122	certification shall be transmitted to the executive director of
123	the Department of Revenue. The business shall be responsible for
124	forwarding a certified application to the department within the
125	time specified in subparagraph 4.
126	4. An application for a refund pursuant to this paragraph
127	must be submitted to the department within 6 months after the
128	tax is due on the business property that is purchased.
129	5. The provisions of s. 212.095 do not apply to any refund
130	application made pursuant to this paragraph. The amount refunded
131	on purchases of business property under this paragraph shall be
132	the lesser of 97 percent of the sales tax paid on such business
133	property or $5,000, or, if no less than 20 percent of the
134	employees of the business are residents of an enterprise zone,
135	excluding temporary and part-time employees, the amount refunded
136	on purchases of business property under this paragraph shall be
137	the lesser of 97 percent of the sales tax paid on such business
138	property or $10,000. A refund approved pursuant to this
139	paragraph shall be made within 30 days of formal approval by the
140	department of the application for the refund. No refund shall be
141	granted under this paragraph unless the amount to be refunded
142	exceeds $100 in sales tax paid on purchases made within a 60-day
143	time period.
144	6. The department shall adopt rules governing the manner
145	and form of refund applications and may establish guidelines as
146	to the requisites for an affirmative showing of qualification
147	for exemption under this paragraph.
148	7. If the department determines that the business property
149	is used outside an enterprise zone within 3 years from the date
150	of purchase, the amount of taxes refunded to the business
151	purchasing such business property shall immediately be due and
152	payable to the department by the business, together with the
153	appropriate interest and penalty, computed from the date of
154	purchase, in the manner provided by this chapter.
155	Notwithstanding this subparagraph, business property used
156	exclusively in:
157	a. Licensed commercial fishing vessels,
158	b. Fishing guide boats, or
159	c. Ecotourism guide boats
160
161	that leave and return to a fixed location within an area
162	designated under s. 370.28 are eligible for the exemption
163	provided under this paragraph if all requirements of this
164	paragraph are met. Such vessels and boats must be owned by a
165	business that is eligible to receive the exemption provided
166	under this paragraph. This exemption does not apply to the
167	purchase of a vessel or boat.
168	8. The department shall deduct an amount equal to 10
169	percent of each refund granted under the provisions of this
170	paragraph from the amount transferred into the Local Government
171	Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
172	for the county area in which the business property is located
173	and shall transfer that amount to the General Revenue Fund.
174	9. For the purposes of this exemption, "business property"
175	means new or used property defined as "recovery property" in s.
176	168(c) of the Internal Revenue Code of 1954, as amended, except:
177	a. Property classified as 3-year property under s.
178	168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
179	b. Industrial machinery and equipment as defined in sub-
180	subparagraph (b)6.a. and eligible for exemption under paragraph
181	(b);
182	c. Building materials as defined in sub-subparagraph
183	(g)8.a.; and
184	d. Business property having a sales price of under $500
185	$5,000per unit.
186	10. The provisions of this paragraph shall expire and be
187	void on December 31, 2005.
188	Section 3. Section 212.097, Florida Statutes, is amended
189	to read:
190	212.097 Designated Urban High-Crime Area Job Tax Credit
191	AreaProgram.--
192	(1) As used in this section, the term:
193	(a) "Eligible business" means any sole proprietorship,
194	firm, partnership, or corporation that is located in a
195	designated urban job tax credit areaqualified countyand is
196	predominantly engaged in, or is headquarters for a business
197	predominantly engaged in, activities usually provided for
198	consideration by firms classified within the following standard
199	industrial classifications: SIC 01-SIC 09 (agriculture,
200	forestry, and fishing); SIC 20-SIC 39 (manufacturing); SIC 52-
201	SIC 57 and SIC 59 (retail); SIC 422 (public warehousing and
202	storage); SIC 70 (hotels and other lodging places); SIC 7391
203	(research and development); SIC 781 (motion picture production
204	and allied services); SIC 7992 (public golf courses); andSIC
205	7996 (amusement parks); and a targeted industry eligible for the
206	qualified target industry business tax refund under s. 288.106.
207	A call center or similar customer service operation that
208	services a multistate market or international market is also an
209	eligible business. In addition, the Office of Tourism, Trade,
210	and Economic Development may, as part of its final budget
211	request submitted pursuant to s. 216.023, recommend additions to
212	or deletions from the list of standard industrial
213	classifications used to determine an eligible business, and the
214	Legislature may implement such recommendations. Excluded from
215	eligible receipts are receipts from retail sales, except such
216	receipts for SIC 52-SIC 57 and SIC 59 (retail) hotels and other
217	lodging places classified in SIC 70, public golf courses in SIC
218	7992, and amusement parks in SIC 7996. For purposes of this
219	paragraph, the term "predominantly" means that more than 50
220	percent of the business's gross receipts from all sources is
221	generated by those activities usually provided for consideration
222	by firms in the specified standard industrial classification.
223	The determination of whether the business is located in a
224	designated urban job tax creditqualified high-crime area and
225	the tier ranking of that areamust be based on the date of
226	application for the credit under this section. Commonly owned
227	and controlled entities are to be considered a single business
228	entity.
229	(b) "Qualified employee" means any employee of an eligible
230	business who performs duties in connection with the operations
231	of the business on a regular, full-time basis for an average of
232	at least 36 hours per week for at least 3 months within the
233	designated urban job tax creditqualified high-crimearea in
234	which the eligible business is located. An owner or partner of
235	the eligible business is not a qualified employee. The term also
236	includes an employee leased from an employee leasing company
237	licensed under chapter 468, if such employee has been
238	continuously leased to the employer for an average of at least
239	36 hours per week for more than 6 months.
240	(c) "New business" means any eligible business first
241	beginning operation on a site in a designated urban job tax
242	creditqualified high-crimearea and clearly separate from any
243	other commercial or business operation of the business entity
244	within a designated urban job tax creditqualified high-crime
245	area. A business entity that operated an eligible business
246	within a designated urban job tax creditqualified high-crime
247	area within the 48 months before the period provided for
248	application by subsection (2) is not considered a new business.
249	(d) "Existing business" means any eligible business that
250	does not meet the criteria for a new business.
251	(e) "Designated urban job tax creditQualified high-crime
252	area" means an area selected by the Office of Tourism, Trade,
253	and Economic Development in the following manner: every third
254	year, the office shall rank and tierthose areas nominated under
255	subsection (7), according to the highest level of distress
256	experienced in the categories enumerated under subsection (7).
257	The Office of Tourism, Trade, and Economic Development shall
258	designate the 30 highest distress profile urban areas as
259	eligible participants under the urban job tax credit program
260	following prioritized criteria:
261	1. Highest arrest rates within the geographic area for
262	violent crime and for such other crimes as drug sale, drug
263	possession, prostitution, vandalism, and civil disturbances;
264	2. Highest reported crime volume and rate of specific
265	property crimes such as business and residential burglary, motor
266	vehicle theft, and vandalism;
267	3. Highest percentage of reported index crimes that are
268	violent in nature;
269	4. Highest overall index crime volume for the area; and
270	5. Highest overall index crime rate for the geographic
271	area.
272
273	Tier-one areas are ranked 1 through 5 and represent the highest
274	crime areas according to this ranking. Tier-two areas are ranked
275	6 through 10 according to this ranking. Tier-three areas are
276	ranked 11 through 15.Notwithstanding this definition,
277	"designated urban job tax creditqualified high-crimearea" also
278	means an area that has been designated as a federal Empowerment
279	Zone pursuant to the Taxpayer Relief Act of 1997. Such a
280	designated area is ranked in tier three until the areas are
281	reevaluated by the Office of Tourism, Trade, and Economic
282	Development.
283	(2) A new eligible business may apply for a tax credit
284	under this subsection once at any time during its first year of
285	operation. A new eligible business in a designated urban job tax
286	credittier-one qualified high-crimearea which has at least 10
287	qualified employees on the date of application shall receive a
288	$1,500 tax credit for each such employee. A new eligible
289	business in a tier-two qualified high-crime area which has at
290	least 20 qualified employees on the date of application shall
291	receive a $1,000 tax credit for each such employee. A new
292	eligible business in a tier-three qualified high-crime area
293	which has at least 30 qualified employees on the date of
294	application shall receive a $500 tax credit for each such
295	employee.
296	(3) An existing eligible business may apply for a tax
297	credit under this subsection at any time it is entitled to such
298	credit, except as restricted by this subsection. An existing
299	eligible business in a designated urban job tax credittier-one
300	qualified high-crimearea which on the date of application has
301	at least 105more qualified employees than it had 1 year prior
302	to its date of application shall receive a $1,500 tax credit for
303	each such additional employee. An existing eligible business in
304	a tier-two qualified high-crime area which on the date of
305	application has at least 10 more qualified employees than it had
306	1 year prior to its date of application shall receive a$1,000
307	credit for each such additional employee. An existing business
308	in a tier-three qualified high-crime area which on the date of
309	application has at least 15 more qualified employees than it had
310	1 year prior to its date of application shall receive a $500 tax
311	credit for each such additional employee.An existing eligible
312	business may apply for the credit under this subsection no more
313	than once in any 12-month period. Any existing eligible business
314	that received a credit under subsection (2) may not apply for
315	the credit under this subsection sooner than 12 months after the
316	application date for the credit under subsection (2).
317	(4) For any new eligible business receiving a credit
318	pursuant to subsection (2), an additional $500 credit shall be
319	provided for any qualified employee who is a welfare transition
320	program participant. For any existing eligible business
321	receiving a credit pursuant to subsection (3), an additional
322	$500 credit shall be provided for any qualified employee who is
323	a welfare transition program participant. Such employee must be
324	employed on the application date and have been employed less
325	than 1 year. This credit shall be in addition to other credits
326	pursuant to this section regardless of the tier-level of the
327	high-crime area. Appropriate documentation concerning the
328	eligibility of an employee for this credit must be submitted as
329	determined by the department.
330	(5) To be eligible for a tax credit under subsection (3),
331	the number of qualified employees employed 1 year prior to the
332	application date must be no lower than the number of qualified
333	employees on the application date on which a credit under this
334	section was based for any previous application, including an
335	application under subsection (2).
336	(6) Any county or municipality, or a county and one or
337	more municipalities together, may apply to the Office of
338	Tourism, Trade, and Economic Development for the designation of
339	an area as a designated urban job tax credithigh-crimearea
340	after the adoption by the governing body or bodies of a
341	resolution that:
342	(a) Finds that an urbana high-crimearea exists in such
343	county or municipality, or in both the county and one or more
344	municipalities, which chronically exhibits extreme and
345	unacceptable levels of poverty, unemployment, physical
346	deterioration, and economic disinvestment;
347	(b) Determines that the rehabilitation, conservation, or
348	redevelopment, or a combination thereof, of such an urbana
349	high-crimearea is necessary in the interest of the health,
350	safety, and welfare of the residents of such county or
351	municipality, or such county and one or more municipalities; and
352	(c) Determines that the revitalization of such an urbana
353	high-crimearea can occur if the public sector or private sector
354	can be induced to invest its own resources in productive
355	enterprises that build or rebuild the economic viability of the
356	area.
357	(7) The governing body of the entity nominating the area
358	shall demonstrateprovideto the Office of Tourism, Trade, and
359	Economic Development that the area meets thefollowing:
360	(a) Income characteristics:
361	1. Forty percent of area residents earn at or below
362	minimum wage; or
363	2. More than 20 percent of residents or families live
364	below the federal standard of poverty for individuals or a
365	family of four.The overall index crime rate for the geographic
366	area;
367	(b) Education characteristics:
368	1. Has a high school dropout rate higher than the county
369	average; or
370	2. Has a high school graduation rate lower than the state
371	average.The overall index crime volume for the area;
372	(c) Workforce and employment characteristics:
373	1. Has an unemployment rate at least 3 percentage points
374	higher than the state’s unemployment rate;
375	2. Greater than 50 percent of families subject to the
376	welfare-to-work transition time limit are either within 6 months
377	of the time limit or are receiving cash assistance under a
378	period of hardship extension to the time limit; or
379	3. Is identified as a labor surplus area using the
380	criteria established by the United States Department of Labor’s
381	Employment and Training Administration.The percentage of
382	reported index crimes that are violent in nature;
383	(d) Crime characteristics:
384	1. Has an arrest rate higher than the state’s average rate
385	for such crimes as drug sale, drug possession, prostitution,
386	vandalism, and civil disturbances, as recorded by total crime
387	index of the Department of Law Enforcement; or
388	2. Ranks in the top 30 percent of zip codes with reported
389	crimes that are violent in nature.The reported crime volume and
390	rate of specific property crimes such as business and
391	residential burglary, motor vehicle theft, and vandalism; and
392	(e) Residential and commercial property related
393	characteristics:
394	1. Fifty percent or more of area residents rent;
395	2.a. Property values are within the lower 50 percent of
396	the county’s assessed property values;
397	b. More than 5 percent of area homes, apartments, or
398	buildings are abandoned, have been condemned within the previous
399	24 months, or have a greater number of violations of the Florida
400	Building Code than recorded in the remainder of the county or
401	municipality; or
402	c. Tax or special assessment delinquencies which exceed
403	the fair value of the land.The arrest rates within the
404	geographic area for violent crime and for such other crimes as
405	drug sale, drug possession, prostitution, disorderly conduct,
406	vandalism, and other public-order offenses.
407	(8) A municipality, or a county and one or more
408	municipalities together, may not nominate more than one urban
409	high-crimearea. However, any county as defined by s. 125.011(1)
410	may nominate no more than three urbanhigh-crimeareas.
411	(9)(a)An area nominated by a county or municipality, or a
412	county and one or more municipalities together, for designation
413	as an urban job tax credita high-crimearea shall be eligible
414	only if it meets the following criteria:
415	1.(a) The selected area does not exceed 20 square miles
416	and eitherhas a continuous boundary or consists of not more
417	than three noncontiguous parcels.;
418	2.(b)The selected area does not exceed the following
419	mileage limitation:
420	a.1. For areascommunitieshaving a total population of
421	150,000 persons or more, the selected area does not exceed 20
422	square miles and is within 10 miles of the central business
423	district of a city.
424	b.2. For areascommunitieshaving a total population of
425	50,000 persons or more, but fewer than 150,000 persons, the
426	selected area does not exceed 10 square miles and is within 7.5
427	miles of the central business district of a city.
428	c.3. For areascommunitieshaving a total population of
429	20,000 persons or more, but fewer than 50,000 persons, the
430	selected area does not exceed 5 square miles and is within 5
431	miles of the central business district of a city.
432	d.4. For areascommunitieshaving a total population of
433	fewer than 20,000 persons, the selected area does not exceed 3
434	square miles and is within 3 miles of the central business
435	district of a city.
436	(b) A designated urban core or inner city may not include
437	any portion of a central business district, as that term is used
438	for purposes of the most recent Census of Retail Trade, unless
439	the poverty rate for each census geographic block group in the
440	district is not less than 30 percent.
441	(10)(a) In order to claim this credit, an eligible
442	business must file under oath with the Office of Tourism, Trade,
443	and Economic Development a statement that includes the name and
444	address of the eligible business and any other information that
445	is required to process the application.
446	(b) Within 30 working days after receipt of an application
447	for credit, the Office of Tourism, Trade, and Economic
448	Development shall review the application to determine whether it
449	contains all the information required by this subsection and
450	meets the criteria set out in this section. Subject to the
451	provisions of paragraph (c), the Office of Tourism, Trade, and
452	Economic Development shall approve all applications that contain
453	the information required by this subsection and meet the
454	criteria set out in this section as eligible to receive a
455	credit.
456	(c) The maximum credit amount that may be approved during
457	any calendar year is $5 million, of which $1 million shall be
458	exclusively reserved for tier-one areas. The Department of
459	Revenue, in conjunction with the Office of Tourism, Trade, and
460	Economic Development, shall notify the governing bodies in areas
461	designated under this sectionas urban high-crime areaswhen the
462	$5 million maximum amount has been reached. Applications must be
463	considered for approval in the order in which they are received
464	without regard to whether the credit is for a new or existing
465	business. This limitation applies to the value of the credit as
466	contained in approved applications. Approved credits may be
467	taken in the time and manner allowed pursuant to this section.
468	(11) If the application is insufficient to support the
469	credit authorized in this section, the Office of Tourism, Trade,
470	and Economic Development shall deny the credit and notify the
471	business of that fact. The business may reapply for this credit
472	within 3 months after such notification.
473	(12) If the credit under this section is greater than can
474	be taken on a single tax return, excess amounts may be taken as
475	credits on any tax return submitted within 12 months after the
476	approval of the application by the department.
477	(13) It is the responsibility of each business to
478	affirmatively demonstrate to the satisfaction of the Department
479	of Revenue that it meets the requirements of this section.
480	(14) Any person who fraudulently claims this credit is
481	liable for repayment of the credit plus a mandatory penalty of
482	100 percent of the credit and is guilty of a misdemeanor of the
483	second degree, punishable as provided in s. 775.082 or s.
484	775.083.
485	(15) A corporation may take the credit under this section
486	against its corporate income tax liability, as provided in s.
487	220.1895. However, a corporation that applies its job tax credit
488	against the tax imposed by chapter 220 may not receive the
489	credit provided for in this section. A credit may be taken
490	against only one tax.
491	(16) A corporation may transfer any unused credit in whole
492	or in units of no less than 25 percent of the remaining credit.
493	The entity acquiring such credit may use it in the same manner
494	and with the same limitation as described in this section. Such
495	transferred credits may not be transferred again although they
496	may succeed to a surviving or acquiring entity subject to the
497	same conditions and limitations described in this section.
498	(17)(16)The department shall adopt rules governing the
499	manner and form of applications for credit or transfers of
500	creditand may establish guidelines concerning the requisites
501	for an affirmative showing of qualification for the credit under
502	this section.
503	Section 4. Paragraphs (e) and (h) of subsection (1) of
504	section 220.191, Florida Statutes, are amended to read:
505	220.191 Capital investment tax credit.--
506	(1) DEFINITIONS.--For purposes of this section:
507	(e) "Jobs" means full-time equivalent positions, as such
508	term is consistent with terms used by the Agency for Workforce
509	InnovationDepartment of Labor and Employment Securityand the
510	United States Department of Labor for purposes of unemployment
511	tax administration and employment estimation, resulting directly
512	from a project in this state. Such term does not include
513	temporary construction jobs involved in the construction of the
514	project facility.
515	(h) "Qualifying project" means a new or expanding facility
516	in this state which creates at least 100 new jobs in this state
517	and is otherwise eligible for certification by the office as a
518	qualified target industry business pursuant to s. 288.106in one
519	of the high-impact sectors identified by Enterprise Florida,
520	Inc., and certified by the office pursuant to s. 288.108(6),
521	including, but not limited to, aviation, aerospace, automotive,
522	and silicon technology industries.
523	Section 5. Section 288.9515, Florida Statutes, is amended
524	to read:
525	288.9515 Authorized technology development programs.--
526	(1) Enterprise Florida, Inc., may create technology
527	development andapplications services, and may serve as an
528	umbrella organization for the coordination of information that
529	providestechnology applications service providers throughout
530	the state which providecritical, managerial, technological,
531	scientific, and related financial and business expertise
532	essential for international and domestic competitiveness to
533	small-sized and medium-sized manufacturing and knowledge-based
534	service firms. Enterprise Florida, Inc., is authorized the
535	following powers in order to carry out these functions:
536	(a) Providing communication and coordination services
537	among technology development andapplications service providers
538	throughout the state.
539	(b) Providing coordinated marketing services to small-
540	sized and medium-sized manufacturers in the state on behalf of,
541	and in partnership with, technology applications service
542	providers.
543	(b)(c)Securing additional sources of funds on behalf of,
544	and in partnership with, technology-based businesses technology
545	applications service providers.
546	(c)(d)Developing plans and policies to assist small-sized
547	and medium-sized manufacturing companies or other knowledge-
548	based firms in Florida.
549	(e) Entering into contracts with technology applications
550	service providers for expanded availability of high-quality
551	assistance to small-sized and medium-sized manufacturing
552	companies or knowledge-based service firms, including, but not
553	limited to, technological, human resources development, market
554	planning, finance, and interfirm collaboration. Enterprise
555	Florida, Inc., shall ensure that all contracts in excess of
556	$20,000 for the delivery of such assistance to Florida firms
557	shall be based on competitive requests for proposals and shall
558	establish clear standards for the delivery of services under
559	such contracts. Such standards include, but are not limited to:
560	1. The ability and capacity to deliver services in
561	sufficient quality and quantity.
562	2. The ability and capacity to deliver services in a
563	timely manner.
564	3. The ability and capacity to meet the needs of firms in
565	the proposed market area.
566	(d)(f)Assisting other educational institutions,
567	enterprises, or the entities providing business assistance to
568	small-sized and medium-sized manufacturing and knowledge-based
569	servicesenterprises.
570	(g) Establishing a system to evaluate the effectiveness
571	and efficiency of technology applications services provided to
572	small-sized and medium-sized enterprises.
573	(e)(h) Establishing special education andinformational
574	programs for Florida enterprises and for educational
575	institutions and enterprises providing business assistance to
576	Florida enterprises.
577	(f)(i)Assisting inevaluating and documenting the needs
578	of firms in this state for technology development and
579	application services, and developing means to ensure that these
580	needs are met, consistent with the powers provided for in this
581	subsection.
582	(g)(j)Maintaining an office in such place or places as
583	the board of directors of Enterprise Florida, Inc., approves.
584	(h)(k)Making and executing contracts with any person,
585	enterprise, educational institution, association, or any other
586	entity necessary or convenient for the performance of its duties
587	and the exercise of the powers and functions of Enterprise
588	Florida, Inc., under this subsection.
589	(i)(l)Receiving funds from any source to carry out the
590	purposes of providing technology development andapplications
591	services, including, but not limited to, gifts or grants from
592	any department, agency, or instrumentality of the United States
593	or of the state, or any enterprise or person, for any purpose
594	consistent with the provisions of this subsection.
595	(2) When choosing contractors under this section,
596	preference shall be given to existing institutions,
597	organizations, and enterprises so long as these existing
598	institutions, organizations, and enterprises demonstrate the
599	ability to perform at standards established by Enterprise
600	Florida, Inc., under paragraph (1)(e).Neither the provisions of
601	ss. 288.9511-288.9517 nor the actions taken by Enterprise
602	Florida, Inc., under this section shall impair or hinder the
603	operations, performance, or resources of any existing
604	institution, organization, or enterprise.
605	(3) Enterprise Florida, Inc., may create a technology
606	development financing fund, to be called the Florida Technology
607	Research Investment Fund. The fund shall increase technology
608	development in this state by investing in technology development
609	projects that have the potential to generate investment-grade
610	technologies of importance to the state's economy as evidenced
611	by the willingness of private businesses to coinvest in such
612	projects. Enterprise Florida, Inc., may also demonstrate and
613	develop effective approaches to, and benefits of, commercially
614	oriented research collaborations between businesses,
615	universities, and state and federal agencies and organizations.
616	Enterprise Florida, Inc., shall endeavor to maintain the fund as
617	a self-supporting fund once the fund is sufficiently capitalized
618	pursuant to Enterprise Florida, Inc., program guidelinesas
619	reflected in the minimum funding report required in s. 288.9516.
620	The technology research investment projects may include, but are
621	not limited to:
622	(a) Technology development projects expected to lead to a
623	specific investment-grade technology that is of importance to
624	industry in this state.
625	(b) Technology development centers and facilities expected
626	to generate a stream of products and processes with commercial
627	application of importance to industry in this state.
628	(c) Technology development projects that have, or are
629	currently using, other federal or state funds such as federal
630	Small Business Innovation Research awards.
631	(4) Enterprise Florida, Inc., shall invest moneys
632	contained in the Florida Technology Research Investment Fund in
633	technology application research or for technology development
634	projects that have the potential for commercial market
635	application. The partnership shall coordinate any investment in
636	any space-related technology projects with the Florida Space
637	Authority and the Technological Research and Development
638	Authority.
639	(a) The investment of moneys contained in the Florida
640	Technology Research Investment Fund is limited to qualified
641	investments in qualified securitiesin which a private
642	enterprise in this state coinvests at least 40 percent of the
643	total project costs, in conjunction with other cash or noncash
644	investments from state educational institutions, state and
645	federal agencies, or other institutions.
646	(b) All moneys in the small business technology growth
647	account, established as provided in s. 288.95155 for purposes of
648	the Florida Small Business Technology Growth Program, shall be
649	continuously appropriated to the account and may be used for
650	loan guarantees, letter of credit guarantees, cash reserves for
651	loan and letter of credit guarantees, payments of claims
652	pursuant to contracts for guarantees, subordinated loans, loans
653	with warrants, royalty investments, equity investments,For the
654	purposes of this fund, qualified securities include loans, loans
655	convertible to equity, equity, loans with warrants attached that
656	are beneficially owned by the board, royalty agreements, orany
657	other contractual arrangements through which the Florida
658	Technology Research Investment Fund receives an interest,
659	rights, return of funds, or other consideration, and operations
660	of the Florida Small Business Technology Growth Program. All
661	such uses of funds are qualified investmentsin which the board
662	is providing scientific and technological services to any
663	federal, state, county, or municipal agency, or to any
664	individual, corporation, enterprise, association, or any other
665	entity involving technology development. Any claim against the
666	program shall be paid solely from the fund. Neither the credit
667	nor the taxing power of the state shall be pledged to secure the
668	fund or moneys in the fund, other than from moneys appropriated
669	or assigned to the fund, and the state shall not be liable or
670	obligated in any way for any claims against the fund or against
671	Enterprise Florida, Inc.
672	(c) Not more than $175,000 or 5 percent of the revenues
673	generated by investment of moneys contained in the Florida
674	Technology Research Investment Fund plus 5 percent of the
675	revenues generated by investments under The Florida Small
676	Business Technology Growth Program, whichever is greater, may be
677	used on an annual basisto pay operating expenses associated
678	with operation of the Florida Technology Research Investment
679	Fund and the Florida Small Business Technology Growth Program.
680	(d) In the event of liquidation or dissolution of
681	Enterprise Florida, Inc., or the Florida Technology Research
682	Investment Fund, any rights or interests in a qualified security
683	or portion of a qualified security purchased with moneys
684	invested by the State of Florida shall vest in the state, under
685	the control of the State Board of Administration. The state is
686	entitled to, in proportion to the amount of investment in the
687	fund by the state, any balance of funds remaining in the Florida
688	Technology Research Investment Fund after payment of all debts
689	and obligations upon liquidation or dissolution of Enterprise
690	Florida, Inc., or the fund.
691	(e) The investment of funds contained in the Florida
692	Technology Research Investment Fund does not constitute a debt,
693	liability, or obligation of the State of Florida or of any
694	political subdivision thereof, or a pledge of the faith and
695	credit of the state or of any such political subdivision.
696	(5) Enterprise Florida, Inc., may create technology
697	commercialization programs in partnership with private
698	enterprises, educational institutions, and other institutions to
699	increase the rate at which technologies with potential
700	commercial application are moved from university, public, and
701	industry laboratories into the marketplace. Such programs shall
702	be created based upon research to be conducted by Enterprise
703	Florida, Inc.
704	Section 6. Section 288.9517, Florida Statutes, is
705	repealed.
706	Section 7. This act shall take effect upon becoming a law.