| 1 | A bill to be entitled |
| 2 | An act relating to the Florida Research Commercialization |
| 3 | Matching Grant Program; creating s. 288.9552, F.S.; |
| 4 | providing legislative findings and intent; creating the |
| 5 | Florida Research Commercialization Matching Grant Program; |
| 6 | providing for establishment of a statewide advisory |
| 7 | committee for certain purposes; providing applicant |
| 8 | eligibility requirements; providing funding source |
| 9 | requirements; providing for a selection committee; |
| 10 | providing requirements for a selection process and awards |
| 11 | of grants; requiring the program to assist in |
| 12 | commercialization transitions; requiring the program to |
| 13 | establish a program participant database for certain |
| 14 | purposes; providing requirements and procedures for |
| 15 | assessing the program; requiring reports; providing for |
| 16 | awards of grants; providing limitations; providing an |
| 17 | effective date. |
| 18 |
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| 19 | Be It Enacted by the Legislature of the State of Florida: |
| 20 |
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| 21 | Section 1. Section 288.9552, Florida Statutes, is created |
| 22 | to read: |
| 23 | 288.9552 Florida Research Commercialization Matching Grant |
| 24 | Program.-- |
| 25 | (1) PURPOSE; GOALS AND OBJECTIVES; CREATION OF PROGRAM.-- |
| 26 | (a) The purpose of this program is to increase the amount |
| 27 | of federal funding coming to this state that will produce the |
| 28 | kind of distinctive technologies that drive today's knowledge- |
| 29 | based economy. By leveraging federal, state, and private-sector |
| 30 | resources, the program intends to accelerate the innovation |
| 31 | process and more efficiently transform research results into |
| 32 | products in the marketplace. |
| 33 | (b) The program is specifically targeted to be a catalyst |
| 34 | for small or startup companies that can take advantage of |
| 35 | federal and state partnerships to accelerate their growth and |
| 36 | market penetration by helping to overcome the funding gap that |
| 37 | many small companies based in this state face. Specific goals |
| 38 | and objectives include: |
| 39 | 1. Increasing the amount of federal research moneys |
| 40 | received by small businesses in this state through awards from |
| 41 | the Small Business Innovation Research Program and Small |
| 42 | Business Technology Transfer Program of the United States Small |
| 43 | Business Administration's Office of Technology. |
| 44 | 2. Accelerating new technology-based products' entry into |
| 45 | the marketplace. |
| 46 | 3. Producing additional technology-based jobs for the |
| 47 | state. |
| 48 | 4. Providing leveraged resources to increase the |
| 49 | effectiveness and success of applicants' projects. |
| 50 | 5. Speeding commercialization of promising technologies. |
| 51 | 6. Encouraging the establishment and growth of high- |
| 52 | quality, advanced technology firms in the state. |
| 53 | 7. Accelerating deal flow and enhancing the state's |
| 54 | investment infrastructure. |
| 55 | (c) Pursuant to paragraph (a), the Legislature creates the |
| 56 | Florida Research Commercialization Matching Grant Program to |
| 57 | accomplish the goals and objectives specified in paragraph (b). |
| 58 | (2) STATEWIDE ADVISORY COMMITTEE.--A statewide advisory |
| 59 | committee shall be established to ensure the inclusion of |
| 60 | statewide perspectives in the development and administration of |
| 61 | the program. Committee membership shall reflect the diverse |
| 62 | nature of research and development and capital investment |
| 63 | industries in the state. |
| 64 | (3) APPLICANT ELIGIBILITY GUIDELINES.-- |
| 65 | (a) An applicant must be a small company for which a state |
| 66 | matching grant is necessary for project development and |
| 67 | implementation or a corporation registered with the Secretary of |
| 68 | State to operate in this state. If an applicant is not a |
| 69 | corporation registered to operate in this state, any state award |
| 70 | is contingent upon the applicant successfully registering to do |
| 71 | business in this state. |
| 72 | (b) Applicants must be in the process of applying for, or |
| 73 | have applied for or received, a federal award under the Small |
| 74 | Business Innovation Research Program or Small Business |
| 75 | Technology Transfer Program within the previous 12 months prior |
| 76 | to the proposed project. For awards under Phase II of the Small |
| 77 | Business Innovation Research Program or Small Business |
| 78 | Technology Transfer Program, an applicant must have received a |
| 79 | Phase I award and have received an invitation to submit an |
| 80 | application for a Phase II award. If an award has already been |
| 81 | issued, the end date of the federal award must be identified and |
| 82 | justification must be provided as to how these additional funds |
| 83 | will enhance, not supplant, the existing award. |
| 84 | (c) All sources of funding for the project must be |
| 85 | identified and meet the following criteria: |
| 86 | 1. At least 20 percent of the total project funding must |
| 87 | come from the Federal Government or another federal funding |
| 88 | mechanism. |
| 89 | 2. A maximum of 25 percent of total project funding may be |
| 90 | provided from the program. Requested program funding may not |
| 91 | supplant other project funding. The term "not supplant" means |
| 92 | that program grants must not diminish the amount of funds |
| 93 | committed by other project partners. |
| 94 | 3. At least 25 percent of project funding must be provided |
| 95 | from sources other than the program and the Federal Government. |
| 96 | Applicant or partner funding may be used to satisfy this |
| 97 | requirement. Funds may be either cash or in-kind. |
| 98 | 4. Applicant projects funded by program grants must be |
| 99 | conducted in this state. |
| 100 | (4) SELECTION COMMITTEE.--A critical component of the |
| 101 | program shall be the assessment and selection of matching fund |
| 102 | award recipients. This process shall be quick, efficient, |
| 103 | impartial, and serve the needs to the industry applicants that |
| 104 | apply for program support. To address this need, a selection |
| 105 | committee shall be established, composed of members who are |
| 106 | experienced in conducting, reviewing, and evaluating research |
| 107 | and development projects as well as those who have been |
| 108 | successful in developing commercialization programs and managing |
| 109 | investment in early-stage companies. The selection committee |
| 110 | shall review matching fund applications, implement consistent |
| 111 | selection criteria, participate in the selection process, and |
| 112 | select award recipients. |
| 113 | (5) SELECTION PROCESS.-- |
| 114 | (a) The selection committee shall issue an open call |
| 115 | request for funding proposals in the form of a match |
| 116 | solicitation. The solicitation shall include the award amount |
| 117 | available, reporting and proposal preparation guidance, and any |
| 118 | required application forms. To qualify for an award under a |
| 119 | match solicitation, an applicant must have been notified that it |
| 120 | is the recipient of a federal Phase I award under the Small |
| 121 | Business Innovation Research Program or Small Business |
| 122 | Technology Transfer Program. |
| 123 | (b) Applications for awards from the program shall be |
| 124 | submitted to the project manager of the program administrator |
| 125 | who shall review the applications for completion and compliance |
| 126 | with program standards. After such review, the project manager |
| 127 | shall forward the applications to the selection committee. |
| 128 | (c) After receiving the applications from the project |
| 129 | manager, the selection committee shall convene, review, and vote |
| 130 | within a period of 10 days to award funds based on criteria that |
| 131 | may include the company's history of operations, phase I results |
| 132 | under the Small Business Innovation Research Program or Small |
| 133 | Business Technology Transfer Program, and the impact on economic |
| 134 | development in this state. Applicants may respond to any |
| 135 | questions by the selection committee during this 10-day period. |
| 136 | The purpose of providing applicants with a 10-day response |
| 137 | period is to enable companies to respond rapidly to a Phase II |
| 138 | proposal and reduce the amount of time spent seeking additional |
| 139 | development funding. The funding provided to each applicant |
| 140 | shall be determined based on total funding available, program |
| 141 | constraints, and the discretion of the selection committee. |
| 142 | (d) Matching funds shall be distributed to companies only |
| 143 | upon notification of a successful Phase II award under the Small |
| 144 | Business Innovation Research Program or Small Business |
| 145 | Technology Transfer Program. The project manager shall remain in |
| 146 | contact with all matching funds applicants from the time an |
| 147 | application to the program is submitted until the termination of |
| 148 | a company's participation in the program as signified by a |
| 149 | denial of the Phase II award or the completion of Phase II work |
| 150 | and entering into commercialization activities under Phase III. |
| 151 | (e) Upon notification by the project manager of an |
| 152 | approved application, a company may apply for a Phase II award |
| 153 | with evidence of matching funds for purposes of demonstrating |
| 154 | external support for the project to the federal Small Business |
| 155 | Innovation Research Program or Small Business Technology |
| 156 | Transfer Program committees and enhance potential commercial |
| 157 | development opportunities for the company. |
| 158 | (f) After a company has notified the program manager of |
| 159 | the Phase II award, matching funds shall be distributed and the |
| 160 | award shall be recorded in the matching funds database for |
| 161 | purposes of initiating the development and reporting phase of |
| 162 | the relationship between the company and the program. |
| 163 | (6) COMMERCIALIZATION TRANSITION.--For purposes of |
| 164 | enabling companies to successfully make the transition to |
| 165 | commercialization from Phase II to Phase III under the Small |
| 166 | Business Innovation Research Program or Small Business |
| 167 | Technology Transfer Program, the program shall engage companies |
| 168 | at the end of Phase I to help them address commercialization |
| 169 | planning in their Phase II proposals, thus enhancing their |
| 170 | potential for successful company growth and development in this |
| 171 | state. |
| 172 | (7) DATABASE.--To further support companies entering Phase |
| 173 | III, the program shall establish a database to be used to track |
| 174 | program participant progress and to provide access to investors |
| 175 | and venture capital firms. Angel investors and venture |
| 176 | capitalists seeking investment opportunities in this state may |
| 177 | use the database to easily locate emerging technology companies |
| 178 | throughout the state participating in the program. |
| 179 | (8) PROGRAM ASSESSMENT.--To monitor the success and impact |
| 180 | of the program, the following assessments shall be made as |
| 181 | appropriate: |
| 182 | (a) Companies that apply for and receive funding from the |
| 183 | program shall submit to the program administrator quarterly |
| 184 | reports documenting their progress and use of funds. The program |
| 185 | shall maintain the information in such reports for purposes of |
| 186 | monitoring program assessment and maintaining contact with award |
| 187 | recipients. Each award recipient shall also provide the program |
| 188 | administrator with a final report upon conclusion of its Phase |
| 189 | II activities. |
| 190 | (b) The program administrator shall maintain a database of |
| 191 | award recipients with company profiles and contact information. |
| 192 | (c) The program administrator shall provide the statewide |
| 193 | advisory committee with an annual report regarding awards |
| 194 | issued, progress made by award recipients, and overall program |
| 195 | results. The program administrator shall also provide the |
| 196 | committee with suggestions for enhancing the program. |
| 197 | (9) AWARDS.--The program shall make 20 to 30 awards, |
| 198 | ranging from $100,000 to $250,000 each, for a total of $5 |
| 199 | million. |
| 200 | Section 2. This act shall take effect July 1, 2007. |