Senate Bill sb0006Ec2

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    Florida Senate - 2003                     CS for CS for SB 6-E

    By the Committees on Appropriations; Commerce, Economic
    Opportunities, and Consumer Services; and Senators Atwater,
    Klein and Aronberg



    309-658-04

  1                      A bill to be entitled

  2         An act relating to economic development;

  3         creating s. 288.955, F.S.; creating the Scripps

  4         Florida Funding Corporation to facilitate the

  5         establishment and operation of a biomedical

  6         research institution for the purposes of

  7         enhancing education and research and promoting

  8         economic development and diversity; providing

  9         for its board of directors; prohibiting

10         conflicts of interest; providing penalties;

11         providing powers and duties of the corporation;

12         providing for investment of funds; requiring an

13         operating plan; requiring the corporation and

14         Scripps Florida or another entity operating

15         such an institution to enter into a contract;

16         providing for disbursement and reinvestment of

17         funds; requiring reports, audits, and

18         evaluations; providing for performance measures

19         as conditions for disbursement of funds;

20         limiting the use of funds; providing that the

21         appropriation of funds does not constitute a

22         debt of the state or a subdivision of the state

23         nor does it subject the state or a subdivision

24         to liability; creating the Joint Legislative

25         Committee on Biomedical Investment Oversight;

26         providing its membership and duties; providing

27         legislative intent with respect to creating

28         economic opportunity and improving public

29         health through the establishment of a

30         biomedical research institution; amending s.

31         403.973, F.S.; specifying that projects that

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 1         are part of the biomedical research institution

 2         and campus are eligible for the expedited

 3         permitting process; providing for challenges to

 4         state agency action in expedited permitting

 5         related to the institution and campus;

 6         providing for the reversion of funds to the

 7         General Revenue Fund under certain

 8         circumstances; providing for an extension of

 9         the contract deadline under certain

10         circumstances in which the grantee cannot meet

11         the conditions of the contract; amending s.

12         288.1088, F.S., relating to the Quick Action

13         Closing Fund; requiring a recommendation by the

14         Executive Office of the Governor; providing

15         requirements for such recommendation; providing

16         appropriations; providing an effective date.

17  

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

19  

20         Section 1.  Section 288.955, Florida Statutes, is

21  created to read:

22         288.955  Scripps Florida Funding Corporation.--

23         (1)  DEFINITIONS.--As used in this section, the term:

24         (a)  "Contract" means the contract executed between the

25  corporation and the grantee under this section.

26         (b)  "Corporation" means the Scripps Florida Funding

27  Corporation created under this section.

28         (c)  "Grantee" means Scripps Florida or a division,

29  subsidiary, affiliate, or entity formed by The Scripps

30  Research Institute to establish a state-of-the-art biomedical

31  research institution and campus in this state.

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 1         (2)  CREATION.--

 2         (a)  There is created a not-for-profit corporation

 3  known as the Scripps Florida Funding Corporation, which shall

 4  be registered, incorporated, organized, and operated under

 5  chapter 617.

 6         (b)  The corporation is not a unit or entity of state

 7  government. However, the corporation is subject to the

 8  provisions of s. 24, Art. I of the State Constitution and

 9  chapter 119, relating to public meetings and records, and the

10  provisions of chapter 286 relating to public meetings and

11  records.

12         (c)  The corporation must establish at least one

13  corporate office in this state and appoint a registered agent.

14         (d)  The corporation shall hire or contract for all

15  staff necessary to the proper execution of its powers and

16  duties within the funds appropriated to implement this section

17  and shall require that all officers, directors, and employees

18  of the corporation comply with the code of ethics for public

19  officers and employees under part III of chapter 112. In no

20  case may the corporation expend more than $200,000 per year

21  for staffing using funds appropriated to implement this

22  section.

23         (e)  The Office of Tourism, Trade, and Economic

24  Development shall provide administrative support to the

25  corporation as requested by the corporation.

26         (3)  PURPOSE.--The corporation shall be organized to

27  receive, hold, invest, administer, and disburse funds

28  appropriated by the Legislature for the establishment and

29  operation of a state-of-the-art biomedical research

30  institution and campus in this state by The Scripps Research

31  Institute. The corporation shall safeguard the state's

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 1  commitment of financial support by ensuring that, as a

 2  condition for the receipt of these funds, the grantee meets

 3  its contractual obligations. In this manner, the corporation

 4  shall facilitate and oversee the state goal and public purpose

 5  of providing financial support for the institution and campus

 6  in order to expand the amount and prominence of biomedical

 7  research conducted in this state, provide an inducement for

 8  high-technology businesses to locate in this state, create

 9  educational opportunities through access to and partnerships

10  with the institution, and promote improved health care through

11  the scientific outcomes of the institution.

12         (4)  BOARD; MEMBERSHIP.--The corporation shall be

13  governed by a board of directors.

14         (a)  The board of directors shall consist of nine

15  voting members, of whom the Governor shall appoint three, the

16  President of the Senate shall appoint three, and the Speaker

17  of the House of Representatives shall appoint three. The

18  director of the Office of Tourism, Trade, and Economic

19  Development or the director's designee shall serve as an

20  ex-officio, nonvoting member of the board of directors.

21         (b)  Each member of the board of directors shall serve

22  for a term of 4 years, except that initially the Governor, the

23  President of the Senate, and the Speaker of the House of

24  Representatives each shall appoint one member for a term of 1

25  year, one member for a term of 2 years, and one member for a

26  term of 4 years to achieve staggered terms among the members

27  of the board. A member is not eligible for reappointment to

28  the board, except, however, that a member appointed to an

29  initial term of 1 year or 2 years may be reappointed for an

30  additional term of 4 years. The Governor, the President of the

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

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 1  make their initial appointments to the board by November 30,

 2  2003.

 3         (c)  The Governor, the President of the Senate, or the

 4  Speaker of the House of Representatives, respectively, shall

 5  fill a vacancy on the board of directors, according to who

 6  appointed the member whose vacancy is to be filled or whose

 7  term has expired. A vacancy that occurs before the scheduled

 8  expiration of the term of the member shall be filled for the

 9  remainder of the unexpired term.

10         (d)  Each member of the board of directors who is not

11  otherwise required to file financial disclosure under s. 8,

12  Art. II of the State Constitution or s. 112.3144 shall file

13  disclosure of financial interests under s. 112.3145.

14         (e)  A person may not be appointed to the board of

15  directors if he or she has had any interest, direct or

16  indirect, in any contract, franchise, privilege, or other

17  benefit granted by The Scripps Research Institute or any of

18  its affiliate organizations within 5 years before appointment.

19  A person appointed to the board of directors must agree to

20  refrain from having any interest, direct or indirect, in any

21  contract, franchise, privilege, or other benefit granted by

22  The Scripps Research Institute or any of its affiliate

23  organizations during the term of his or her appointment and

24  for 5 years after the termination of such appointment. It is a

25  misdemeanor of the first degree, punishable as provided in s.

26  775.083 or s. 775.084, for a person to accept appointment to

27  the board of directors in violation of this paragraph or to

28  accept an interest in any contract, franchise, privilege, or

29  other benefit granted by the institution or affiliate within 5

30  years after the termination of his or her service on the

31  board.

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 1         (f)  Each member of the board of directors shall serve

 2  without compensation.

 3         (g)  Each member of the board of directors is

 4  accountable for the proper performance of the duties of

 5  office, and each member owes a fiduciary duty to the people of

 6  the state to ensure that funds provided in furtherance of this

 7  section are disbursed and used as prescribed by law and

 8  contract. The Governor, the President of the Senate, or the

 9  Speaker of the House of Representatives, according to which

10  officer appointed the member, may remove a member for

11  malfeasance, misfeasance, neglect of duty, incompetence,

12  permanent inability to perform official duties, unexcused

13  absence from three consecutive meetings of the board, arrest

14  or indictment for a crime that is a felony or a misdemeanor

15  involving theft or a crime of dishonesty, or pleading nolo

16  contendere to, or being found guilty of, any crime.

17         (h)  Notwithstanding the terms of service prescribed in

18  paragraph (b), each member of the board of directors serves at

19  the pleasure of the officer who appointed that member, and the

20  Governor, the President of the Senate, or the Speaker of the

21  House of Representatives, as appropriate, may remove a member

22  at will prior to the expiration of the member's term.

23         (5)  ORGANIZATION; MEETINGS.--

24         (a)1.  The board of directors shall annually elect a

25  chairperson and a vice chairperson from among the board's

26  members. The members may remove a member from the position of

27  chairperson or vice chairperson prior to the expiration of his

28  or her term as chairperson or vice chairperson. His or her

29  successor shall be elected to serve for the balance of the

30  removed chairperson's or vice chairperson's term.

31  

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 1         2.  The chairperson is responsible to ensure that

 2  records are kept of the proceedings of the board of directors

 3  and is the custodian of all books, documents, and papers filed

 4  with the board; the minutes of meetings of the board; and the

 5  official seal of the corporation.

 6         (b)1.  The board of directors shall meet upon the call

 7  of the chairperson or at the request of a majority of the

 8  members, but no less than three times per calendar year.

 9         2.  A majority of the voting members of the board of

10  directors constitutes a quorum. Except as otherwise provided

11  in this section, the board may take official action by a

12  majority vote of the members present at any meeting at which a

13  quorum is present. Members may not vote by proxy.

14         3.  A member of the board may participate in a meeting

15  of the board by telephone or videoconference through which

16  each member may hear every other member.

17         (6)  POWERS AND DUTIES.--The corporation is organized

18  to receive, hold, invest, administer, and disburse funds

19  appropriated by the Legislature in support of this section and

20  to disburse any income generated from the investment of these

21  funds consistent with the purpose and provisions of this

22  section. In addition to the powers and duties prescribed in

23  chapter 617 and the articles and bylaws adopted under that

24  chapter, the corporation:

25         (a)  May make and enter into contracts and assume any

26  other functions that are necessary to carry out the provisions

27  of this section.

28         (b)  May enter into leases and contracts for the

29  purchase of real property and hold notes, mortgages,

30  guarantees, or security agreements to secure the performance

31  of obligations of the grantee under the contract.

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 1         (c)  May perform all acts and things necessary or

 2  convenient to carry out the powers expressly granted in this

 3  section and a contract entered into between the corporation

 4  and the grantee.

 5         (d)  May carry forward any unexpended state

 6  appropriations into succeeding fiscal years.

 7         (e)  May indemnify, and purchase and maintain insurance

 8  on behalf of, directors, officers, and employees of the

 9  corporation against any personal liability or accountability.

10         (f)  Shall disburse funds pursuant to the provisions of

11  this section and a contract entered into between the

12  corporation and the grantee.

13         (g)  Shall receive and review reports and financial

14  documentation provided by the grantee to ensure compliance

15  with the provisions of this section and provisions of the

16  contract.

17         (h)  Shall prepare an annual report as prescribed in

18  subsection (13).

19         (7)  INVESTMENT OF FUNDS.--The corporation must enter

20  into an agreement with the State Board of Administration under

21  which funds received by the corporation from the Office of

22  Tourism, Trade, and Economic Development which are not

23  disbursed to the grantee shall be invested by the State Board

24  of Administration on behalf of the corporation in an annuity

25  product or in a fixed-return investment fund authorized under

26  s. 215.47(1).

27         (8)  CONTRACT.--

28         (a)  By March 15, 2004, the corporation shall negotiate

29  and execute a contract with the grantee governing the

30  disbursement and use of funds under this section. The

31  corporation may not execute the contract unless the contract

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 1  is approved by the affirmative vote of at least seven of the

 2  nine members of the board of directors. At least 14 days

 3  before execution of the contract, The Scripps Research

 4  Institute must submit to the board, the Governor, the

 5  President of the Senate, and the Speaker of the House of

 6  Representatives an organizational plan, in a form and manner

 7  prescribed by the board, for the establishment of a

 8  state-of-the-art biomedical research institution and campus in

 9  this state, and the board must submit a copy of the proposed

10  contract to the Governor, the President of the Senate, and the

11  Speaker of the House of Representatives.

12         (b)  The contract, at a minimum, must contain

13  provisions:

14         1.  Specifying the procedures and schedules that govern

15  the disbursement of funds under this section and specifying

16  the conditions or deliverables that the grantee must satisfy

17  before the release of each disbursement.

18         2.  Requiring the grantee to submit to the corporation

19  a strategic plan in a form and manner prescribed by the

20  corporation.

21         3.  Prohibiting The Scripps Research Institute or the

22  grantee from establishing other biomedical science or research

23  facilities in any state other than this state or California

24  for a period of 15 years from the commencement of the contract

25  or until payment in full of the total payment amount required

26  under subsection (12), whichever occurs first.

27         4.  Governing the ownership of or security interests in

28  real property and personal property, including, but not

29  limited to, research equipment, obtained through the financial

30  support of state or local government, including a provision

31  that in the event of a breach of the contract or in the event

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 1  the grantee ceases operations in this state, such property

 2  purchased with state funds shall revert to the state and such

 3  property purchased with local funds shall revert to the local

 4  governing authority. 

 5         5.  Requiring the grantee, to the maximum extent

 6  possible, to award preference in employment to residents of

 7  this state, as defined by law, and requiring the grantee to be

 8  an equal opportunity employer.

 9         6.  Requiring the grantee to coordinate and comply with

10  the contracting requirements adopted by the Office of Supplier

11  Diversity under s. 287.09451 and with the ordinances,

12  including any small-business ordinances, enacted by the county

13  in which the biomedical research institution and campus are

14  located in this state.

15         7.  Requiring the grantee, to the extent it is cost

16  effective, to make purchases from vendors in this state.

17         8.  Requiring the grantee to use its best reasonable

18  efforts to work collaboratively with research institutions in

19  the state and public and private postsecondary educational

20  institutions in the state, including, but not limited to, the

21  University of Miami and the historically black institutions.

22         9.  Requiring the grantee to participate in

23  employee-recruitment activities at at least seven public

24  universities, seven community colleges, and the University of

25  Miami and the historically black institutions in this state

26  every year during the duration of the contract. In selecting

27  the universities and community colleges, the grantee must, to

28  the maximum extent possible, concentrate recruitment efforts

29  on a statewide basis.

30  

31  

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 1         10.  Requiring the grantee to use the Internet-based

 2  job-listing system of the Agency for Workforce Innovation in

 3  advertising employment opportunities.

 4         11.  Requiring the grantee to establish accredited

 5  science degree programs.

 6         12.  Requiring the grantee to establish internship

 7  programs to create learning opportunities for educators and

 8  secondary, postsecondary, graduate, and doctoral students.

 9         13.  Requiring the grantee to submit data to the

10  corporation on the activities and performance during each

11  fiscal year and to provide to the corporation an annual

12  accounting of the expenditure of funds disbursed under this

13  section.

14         14.  Authorizing the grantee, when feasible, to use

15  information submitted by it to the Federal Government or to

16  other organizations awarding research grants to the grantee to

17  help meet reporting requirements imposed under this section or

18  the contract, if the information satisfies the reporting

19  standards of this section and the contract.

20         15.  Requiring the grantee during the first 7 years of

21  the contract to create 545 positions and to acquire associated

22  research equipment for the grantee's facility in this state,

23  and pay for related maintenance of the equipment, in a total

24  amount of not less than $45 million.

25         16.  Requiring the grantee to progress in the creation

26  of the total number of jobs prescribed in subparagraph 15. on

27  the following schedule: 38 positions in the 1st year, 168

28  positions in the 2nd year, 280 positions in the 3rd year, 367

29  positions in the 4th year, 436 positions in the 5th year, 500

30  positions in the 6th year, and 545 positions in the 7th year.

31  The board may allow the grantee to deviate downward from such

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 1  employee levels by 25 percent in any year, to allow the

 2  grantee flexibility in achieving the objectives set forth in

 3  the business plan provided to the corporation; however, the

 4  grantee must have no fewer than 545 positions by the end of

 5  the 7th year.

 6         17.  Requiring the grantee to authorize the Office of

 7  Program Policy Analysis and Government Accountability to

 8  inspect the records of the grantee to evaluate the compliance

 9  of the grantee with law and the contract or to otherwise

10  evaluate the performance of the grantee.

11         18.  Requiring the grantee to purchase liability

12  insurance and governing the coverage level of such insurance.

13         (c)  An amendment to the contract is not effective

14  unless it is approved by the affirmative vote of at least

15  seven of the nine members of the board of directors.

16         (9)  PERFORMANCE MEASURES.--In addition to the

17  provisions prescribed in subsection (8), the contract between

18  the corporation and the grantee shall include performance

19  measures that must be satisfied by the grantee as a condition

20  for the continued disbursement of funds under this section,

21  which performance measures may include:

22         (a)  Jobs created and the average salaries paid.

23         (b)  Research grants obtained from the Federal

24  Government or sources other than the State of Florida.

25         (c)  Partnerships with economic development entities,

26  including the Office of Tourism, Trade, and Economic

27  Development, Enterprise Florida, Inc., and other local

28  agencies.

29         (d)  National recognition of graduate programs.

30         (e)  Equipment purchased.

31         (f)  Graduate student placements.

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 1         (g)  Summer intern programs.

 2         (h)  Programs for adjunct professors.

 3         (i)  Joint graduate programs.

 4         (j)  Open access to qualified science projects.

 5         (k)  Collaboration with research institutions and

 6  colleges and universities in this state, including, but not

 7  limited to, the University of Miami and the historically black

 8  institutions.

 9  

10  The board shall be responsible for determining the appropriate

11  measures and standards to be included in the contract,

12  including determining at what stage in the establishment and

13  operation of the grantee each measure should be used and

14  determining under what conditions new measures should be

15  incorporated into the contract or existing measures revised.

16  The contract shall require the grantee to provide information

17  on these measures on an annual basis.

18         (10)  DISBURSEMENTS.--

19         (a)  The corporation shall disburse funds to the

20  grantee over a period of 7 calendar years starting in the

21  calendar year beginning January 1, 2004, under the terms and

22  conditions of the contract. The corporation shall complete

23  disbursement of the total amount of funds payable to the

24  grantee under the contract no later than December 31, 2010,

25  unless the grantee fails to satisfy the terms and conditions

26  of the contract. Any funds of the corporation that are not

27  disbursed by December 31, 2010, shall be paid to the

28  Biomedical Research Trust Fund of the Department of Health.

29         (b)  The contract shall provide for a reduction or

30  elimination of funding in any year if:

31         1.  The grantee is no longer operating in this state;

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 1         2.  The grantee has failed to commit in writing to

 2  maintain operations in the state for the succeeding year; or

 3         3.  The grantee commits a material default or breach of

 4  the contract, as defined and governed by the contract.

 5         (c)  Each disbursement by the corporation to the

 6  grantee under this section is conditioned upon the affirmative

 7  approval of at least five of the nine members of the board of

 8  directors and upon demonstration by the grantee that it has

 9  met the particular contractual deliverables that are the basis

10  for that disbursement.

11         (11)  USE OF FUNDS.--

12         (a)  Funds appropriated in furtherance of this section

13  may not be expended outside of this state. However, upon the

14  approval of five of the nine members of the board, funds may

15  be used outside this state for research, services, or

16  equipment that is directly related to the establishment or

17  operation of the grantee in this state and is not reasonably

18  available in this state.

19         (b)  No funds appropriated in furtherance of this

20  section may be used for the purpose of lobbying any branch or

21  agency of state government or any political subdivision of the

22  state.

23         (12)  REINVESTMENT.--

24         (a)  The contract between the corporation and the

25  grantee shall require the grantee to reinvest to the

26  Biomedical Research Trust Fund of the Department of Health a

27  portion of the grantee's revenues.

28         1.  Beginning no later than 6 months after the

29  corporation has made the final disbursement to the grantee,

30  the grantee shall reinvest each year 15 percent of its net

31  royalty revenues generated from inventions, methods,

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 1  processes, and other patentable activities developed in whole

 2  or in part at the grantee's facilities in this state within 20

 3  years from the commencement of the contract.

 4         2.  Beginning with the execution of the contract, the

 5  grantee shall reinvest each year 15 percent of the gross

 6  revenues it receives from naming opportunities associated with

 7  any facility to be built in this state for the grantee or any

 8  affiliate or successor in interest of the grantee. For the

 9  purposes of this subparagraph, the term "naming opportunities"

10  means charitable donations from any person or entity in

11  consideration for the right to have all or a portion of the

12  facility named for or in memory of any person, living or dead.

13  

14  All reinvestment payments made under this paragraph shall be

15  deposited in the Biomedical Research Trust Fund. The total

16  amount that the grantee must reinvest under this paragraph may

17  not exceed $155 million or the total amount of disbursements

18  received by the grantee, whichever is less.

19         (b)  The contract shall also contain provisions

20  requiring the grantee to begin payments to the trust fund

21  before the year 2012 if the grantee is financially able to do

22  so without jeopardizing its operation.

23         (13)  ANNUAL REPORT.--By December 1 each year, the

24  corporation shall prepare a report of the activities and

25  outcomes under this section for the preceding fiscal year. The

26  report, at a minimum, must include:

27         (a)  A description of the activities of the corporation

28  in managing and enforcing the contract with the grantee.

29         (b)  An accounting of the amount of funds disbursed

30  during the preceding fiscal year to the grantee and a

31  

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 1  description of the satisfaction of contract deliverables by

 2  the grantee which served as the basis for the disbursements.

 3         (c)  An accounting of expenditures by the grantee

 4  during the fiscal year of funds disbursed under this section.

 5         (d)  Information on the number of jobs created by the

 6  grantee.

 7         (e)  Information on the amount and nature of economic

 8  activity generated through the activities of the grantee.

 9         (f)  A detailed assessment of the progress in achieving

10  the return on investment associated with the grantee, as

11  projected by economists on behalf of the Executive Office of

12  Governor, of an additional $3.2 billion in gross state product

13  over a 15-year period, including an assessment of factors

14  affecting the ability and likelihood to meet the projected

15  return on investment.

16         (g)  A compliance and financial audit of the accounts

17  and records of the corporation at the end of the preceding

18  fiscal year conducted by an independent certified public

19  accountant in accordance with rules of the Auditor General.

20         (h)  A compliance and financial audit of the accounts

21  and records of the grantee, related to the expenditure of

22  funds under this section, at the end of the preceding fiscal

23  year conducted by an independent certified public accountant.

24         (i)  An assessment of the grantee's ability to comply

25  with the requirement to make repayment in accordance with

26  subsection (12).

27         (j)  An assessment of the extent to which the grantee

28  is meeting its performance measures in accordance with

29  subsection (9).

30  

31  

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 1  The corporation shall submit the report to the Governor, the

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

 3  Representatives.

 4         (14)  PROGRAM EVALUATION.--

 5         (a)  Before January 1, 2006, the Office of Program

 6  Policy Analysis and Government Accountability shall conduct a

 7  performance audit of the Office of Tourism, Trade, and

 8  Economic Development, the corporation, and the grantee

 9  relating to the provisions of this section. The audit shall

10  assess the implementation and outcomes of activities under

11  this section. At a minimum, the audit shall address:

12         1.  Performance of the Office of Tourism, Trade, and

13  Economic Developments in providing oversight for funds

14  appropriated under this section.

15         2.  Performance of the corporation in managing and

16  enforcing the contract with the grantee.

17         3.  Compliance by the corporation with the provisions

18  of this section and the provisions of the contract.

19         4.  Performance by the grantee under the contract.

20         5.  Economic activity generated through funds disbursed

21  under the contract, including, but not limited to, the number

22  of jobs created by the grantee.

23         6.  The nature and level of interaction between the

24  grantee and educational institutions in the state.

25         (b)  Before January 1, 2008, the Office of Program

26  Policy Analysis and Government Accountability shall update the

27  report required under this subsection. In addition to

28  addressing the items prescribed in paragraph (a), the updated

29  report shall include a recommendation on whether the

30  Legislature should retain the statutory authority for the

31  corporation.

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 1  

 2  A report of each audit's findings and recommendations shall be

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

 4  the Speaker of the House of Representatives. In completing the

 5  performance audits required under this subsection, the Office

 6  of Program Policy Analysis and Government Accountability shall

 7  maximize the use of reports submitted by the grantee to the

 8  Federal Government or to other organizations awarding research

 9  grants to the grantee.

10         (15)  LIABILITY.--

11         (a)  The appropriation or disbursement of funds under

12  this section does not constitute a debt, liability, or

13  obligation of the State of Florida, any political subdivision

14  thereof, or the corporation or a pledge of the faith and

15  credit of the state or of any such political subdivision.

16         (b)  The appropriation or disbursement of funds under

17  this section does not subject the State of Florida, any

18  political subdivision thereof, or the corporation to liability

19  related to the research activities and research products of

20  the grantee.

21         Section 2.  Joint Legislative Committee on Biomedical

22  Investment Oversight.--A Joint Legislative Committee on

23  Biomedical Investment Oversight is created to monitor the

24  economic development incentives and policy regarding the

25  biotechnology industry and related health and science fields,

26  including, but not limited to, implementation of the Scripps

27  Florida Funding Corporation and the corporation's contract

28  with the designated grantee under section 288.955, Florida

29  Statutes. The committee shall be composed of six members:

30  three Senators appointed by the President of the Senate and

31  three members of the House of Representatives appointed by the

                                  18

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 1  Speaker of the House of Representatives. The chair and vice

 2  chair shall be appointed for 1-year terms with the

 3  appointments alternating between the President of the Senate

 4  and the Speaker of the House of Representatives. The chair and

 5  the vice chair may not be members of the same house of the

 6  Legislature. Staff, at the discretion of the chair, may be

 7  assigned to the committee.

 8         Section 3.  Subsections (3) and (15) of section

 9  403.973, Florida Statutes, are amended to read:

10         403.973  Expedited permitting; comprehensive plan

11  amendments.--

12         (3)(a)  The Governor, through the office, shall direct

13  the creation of regional permit action teams, for the purpose

14  of expediting review of permit applications and local

15  comprehensive plan amendments submitted by:

16         1.  Businesses creating at least 100 jobs, or

17         2.  Businesses creating at least 50 jobs if the project

18  is located in an enterprise zone, or in a county having a

19  population of less than 75,000 or in a county having a

20  population of less than 100,000 which is contiguous to a

21  county having a population of less than 75,000, as determined

22  by the most recent decennial census, residing in incorporated

23  and unincorporated areas of the county, or

24         (b)  On a case-by-case basis and at the request of a

25  county or municipal government, the office may certify as

26  eligible for expedited review a project not meeting the

27  minimum job creation thresholds but creating a minimum of 10

28  jobs. The recommendation from the governing body of the county

29  or municipality in which the project may be located is

30  required in order for the office to certify that any project

31  is eligible for expedited review under this paragraph. When

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 1  considering projects that do not meet the minimum job creation

 2  thresholds but that are recommended by the governing body in

 3  which the project may be located, the office shall consider

 4  economic impact factors that include, but are not limited to:

 5         1.  The proposed wage and skill levels relative to

 6  those existing in the area in which the project may be

 7  located;

 8         2.  The project's potential to diversify and strengthen

 9  the area's economy;

10         3.  The amount of capital investment; and

11         4.  The number of jobs that will be made available for

12  persons served by the welfare transition program.

13         (c)  At the request of a county or municipal

14  government, the office or a Quick Permitting County may

15  certify projects located in counties where the ratio of new

16  jobs per participant in the welfare transition program, as

17  determined by Workforce Florida, Inc., is less than one or

18  otherwise critical, as eligible for the expedited permitting

19  process. Such projects must meet the numerical job creation

20  criteria of this subsection, but the jobs created by the

21  project do not have to be high-wage jobs that diversify the

22  state's economy.

23         (d)  Projects located in a designated brownfield area

24  are eligible for the expedited permitting process.

25         (e)  Projects that are part of the state-of-the-art

26  biomedical research institution and campus to be established

27  in this state by the grantee under s. 288.955 are eligible for

28  the expedited permitting process.

29         (15)(a)  Challenges to state agency action in the

30  expedited permitting process for projects processed under this

31  section are subject to the summary hearing provisions of s.

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 1  120.574, except that the administrative law judge's decision,

 2  as provided in s. 120.574(2)(f), shall be in the form of a

 3  recommended order and shall not constitute the final action of

 4  the state agency. In those proceedings where the action of

 5  only one agency of the state is challenged, the agency of the

 6  state shall issue the final order within 10 working days of

 7  receipt of the administrative law judge's recommended order.

 8  In those proceedings where the actions of more than one agency

 9  of the state are challenged, the Governor shall issue the

10  final order within 10 working days of receipt of the

11  administrative law judge's recommended order. The

12  participating agencies of the state may opt at the preliminary

13  hearing conference to allow the administrative law judge's

14  decision to constitute the final agency action. If a

15  participating local government agrees to participate in the

16  summary hearing provisions of s. 120.574 for purposes of

17  review of local government comprehensive plan amendments, s.

18  163.3184(9) and (10) apply.

19         (b)  Challenges to state agency action in the expedited

20  permitting process for establishment of a state-of-the-art

21  biomedical research institution and campus in this state by

22  the grantee under s. 288.955 are subject to the same

23  requirements as challenges brought under paragraph (a), except

24  that, notwithstanding s. 120.574, summary proceedings must be

25  conducted within 30 days after a party files the motion for

26  summary hearing, regardless of whether the parties agree to

27  the summary proceeding.

28         Section 4.  (1)  It is the intent of the Legislature to

29  use a portion of the funds provided by the Federal Government

30  under section 401(b) of the Jobs and Growth Tax Relief

31  Reconciliation Act of 2003 for the essential governmental

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 1  service of improving economic opportunities available to the

 2  people of this state by attracting new or expanding businesses

 3  to, and retaining businesses in, the state. Additionally, the

 4  Legislature recognizes that the state spends billions of

 5  dollars each year to treat major illnesses such as coronary

 6  artery disease, Alzheimer's disease, diabetes, autoimmune

 7  diseases, and cancer. It is further the intent of the

 8  Legislature to use the funds so provided to advance the

 9  essential government service of improving the health of the

10  people of this state by promoting research and development for

11  the prediction, treatment, prevention, and cure of disease.

12  Funding provided under this section will serve these essential

13  government services and help accelerate the development of

14  biomedical research and development projects in the state.

15         (2)  For fiscal year 2003-2004, the sum of $310 million

16  is appropriated from the General Revenue Fund to the Office of

17  Tourism, Trade, and Economic Development for the purpose of

18  funding for the Scripps Florida Funding Corporation created

19  under this act in the special category Grants and Aids to the

20  Scripps Florida Funding Corporation. Notwithstanding sections

21  216.181(16) and 216.351, Florida Statutes, the Office of

22  Tourism, Trade, and Economic Development shall disburse the

23  full appropriation to the corporation in one lump sum upon the

24  execution of the contract between the Scripps Florida Funding

25  Corporation and the grantee, and such disbursement shall be

26  subject to a contract executed between the office and the

27  corporation. In the event the corporation and the grantee are

28  unable to execute the contract after reasonable efforts, all

29  funds appropriated to the corporation in furtherance of this

30  act shall revert to the General Revenue Fund unallocated. In

31  the event that the contract is terminated for breach or

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 1  otherwise, all funds not yet disbursed to the grantee shall be

 2  immediately returned to the General Revenue Fund unallocated.

 3         Section 5.  Force majeure.--Notwithstanding any other

 4  provisions contained in this act, if the grantee is prevented

 5  from timely achieving any deadlines set forth in this act due

 6  to its inability to occupy its permanent Florida facility

 7  within 2 years after entering into the memorandum of agreement

 8  pursuant to section 403.973, Florida Statutes, as a result of

 9  permitting delays, administrative or judicial proceedings,

10  acts of God, labor disturbances, or other similar events

11  beyond the control of the grantee, the deadline shall be

12  extended by the number of days by which the grantee was

13  delayed in commencing its occupancy of its permanent Florida

14  facility. In no event shall the extension be for more than 4

15  years. Upon the occurrence of a force majeure event, the

16  Scripps Florida Funding Corporation shall continue to fund the

17  grantee at a level that permits it to sustain its current

18  level of operations until the force majeure event ceases and

19  the grantee is able to resume the contract schedule governing

20  disbursement.

21         Section 6.  Paragraph (b) of subsection (3) of section

22  288.1088, Florida Statutes, is amended to read:

23         288.1088  Quick Action Closing Fund.--

24         (3)

25         (b)  Upon receipt of the evaluation and recommendation

26  from Enterprise Florida, Inc., the director shall recommend

27  approval or disapproval of a project for receipt of funds from

28  the Quick Action Closing Fund to the Governor. In recommending

29  a project, the director shall include proposed performance

30  conditions that the project must meet to obtain incentive

31  funds. The Governor shall consult with the President of the

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 1  Senate and the Speaker of the House of Representatives before

 2  giving final approval for a project. The Executive Office of

 3  the Governor shall recommend approval of a project and the

 4  release of funds pursuant to the legislative consultation and

 5  review requirements set forth in s. 216.177. The

 6  recommendation must include proposed performance conditions

 7  that the project must meet in order to obtain funds.

 8         Section 7.  For the 2003-2004 fiscal year, the sum of

 9  $10 million is appropriated from nonrecurring general revenue

10  to state universities for infrastructure improvements to the

11  National High Magnetic Field Laboratory. From this

12  appropriation, $7.5 million shall be allocated to Florida

13  State University and $2.5 million shall be allocated to the

14  University of Florida to address infrastructure requirements

15  identified in consultation with the National High Magnetic

16  Field Laboratory Executive Committee.

17         Section 8.  For the 2003-2004 fiscal year, the sum of

18  $5 million is appropriated from nonrecurring general revenue

19  to the Office of Tourism, Trade, and Economic Development for

20  the Military Base Retention Grants Program pursuant to section

21  288.980, Florida Statutes.

22         Section 9.  For the 2003-2004 fiscal year, the sum of

23  $10 million is appropriated from nonrecurring general revenue

24  to the Office of Tourism, Trade, and Economic Development for

25  the Entertainment Industry Financial Incentive Program

26  pursuant to section 288.1254, Florida Statutes.

27         Section 10.  For the 2003-2004 fiscal year, the sum of

28  $5 million is appropriated from nonrecurring general revenue

29  to the Office of Tourism, Trade, and Economic Development and

30  shall be allocated as follows: $3 million for the Rural

31  Infrastructure Fund pursuant to section 288.0655, Florida

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 1  Statutes, and $2 million for the Rural Community Development

 2  Revolving Loan Fund pursuant to section 288.065, Florida

 3  Statutes.

 4         Section 11.  For the 2003-2004 fiscal year, the sum of

 5  $10 million is appropriated from nonrecurring general revenue

 6  to the Office of Tourism, Trade, and Economic Development for

 7  the Quick Action Closing Fund pursuant to section 288.1088,

 8  Florida Statutes.

 9         Section 12.  This act shall take effect upon becoming a

10  law.

11  

12  

13  

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                            CS/SB 6-E

 3                                 
    The committee substitute makes the following significant changes to
 4                            CS/SB 6-E:

 5  Removes provisions requiring the grantee to repay the state
    for all state funds provided to it if the grantee leaves or
 6  ceases operations in this state before 2019.

 7  Revises the terms of the funding corporation's board of
    directors.
 8  
    Includes a force majeure provision to allow the grantee to
 9  continue receiving funding to continue current operations
    resulting from certain events beyond its control.
10  
    Authorizes a vote of five of the nine board members of the
11  funding corporation, instead of a vote of seven of the nine
    board members, to authorize the grantee to use state funds
12  outside of the state or to make disbursements to the grantee.

13  Authorizes the chair and vice chair of the funding corporation
    to be removed by a simple majority vote.
14  
    Requires the grantee to use its best efforts to work
15  collaboratively with the University of Miami and historically
    black colleges, in addition to other research institutions and
16  public and private post secondary educational institutions in
    this state.
17  
    Removes repayment provisions, but requires the grantee to
18  reinvest up to $155 million in the Biomedical Research Trust
    Fund from a portion of its revenues from royalties and naming
19  rights.

20  Requires the approval and release of funds from the Quick
    Action Closing Fund to be made through the legislative
21  consultation and review requirements under s. 216.177, F.S.

22  Makes appropriations for the National High Magnetic Field
    Laboratory, the Military Base Retention Grants Program, the
23  Entertainment Industry Financial Incentive Program, the Rural
    Infrastructure Fund, the Rural Community Development Revolving
24  Loan Fund, and the Quick Action Closing Fund.

25  

26  

27  

28  

29  

30  

31  

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