HB 1521

1	A bill to be entitled
2	An act relating to commercialization of products, patents,
3	and processes resulting from publicly supported research;
4	creating s. 288.956, F.S.; creating and providing
5	legislative intent for the Sure Ventures Commercialization
6	Program; creating s. 288.9561, F.S.; creating Sure
7	Ventures Commercialization, Inc., a not-for-profit
8	corporation; requiring Enterprise Florida, Inc., to
9	provide administrative support to the corporation and be
10	its successor in interest; providing for its
11	administration by a board; providing for appointment of
12	board members; providing for terms; providing for service
13	without compensation; providing for reimbursement for per
14	diem, travel, and other direct expenses; providing
15	criteria for membership; providing for powers and duties
16	of the board; providing for hiring employees; providing
17	for meetings of the board; requiring the board to invest
18	funds through the State Board of Administration; providing
19	for contracts with state universities; requiring the board
20	to prepare and deliver an annual report to the Governor
21	and the Legislature by a specified date; detailing the
22	content of the report; providing for exclusion of
23	liability by the corporation; prohibiting the corporation
24	from incurring debt; creating s. 288.9562, F.S.; creating
25	the Sure Ventures Commercialization Grant Program;
26	providing for the types of grants that may be made to
27	state universities for the commercialization of research
28	projects; creating s. 288.9563, F.S.; providing for grant
29	application and approval procedures; creating s. 288.9621,
30	F.S.; providing a short title; creating s. 288.9622, F.S.;
31	providing legislative findings and intent; creating s.
32	288.9623, F.S.; providing definitions; creating s.
33	288.9624, F.S.; creating the SURE Trust as a state
34	beneficiary public trust; requiring Enterprise Florida,
35	Inc., to provide administrative support to the trust and
36	be its successor in interest; providing for administration
37	by a board of trustees; providing for appointment of board
38	trustees; providing for terms; providing for service
39	without compensation; providing for reimbursement for
40	travel and other expenses; providing criteria for
41	trustees; providing powers and duties of trustees;
42	providing for hiring employees; providing for meetings of
43	the board; requiring the trust to prepare and deliver an
44	annual report to the Governor and the Legislature by a
45	specified date; detailing the content of the report;
46	providing for exclusion of liability by the trust;
47	prohibiting the trust from incurring debt; creating s.
48	288.9625, F.S.; authorizing the trust to receive, hold,
49	use, transfer, and sell certain tax credits for certain
50	purposes; providing requirements and limitations;
51	authorizing the Department of Revenue to adopt rules for
52	certain purposes; creating s. 288.9626, F.S.; requiring
53	Enterprise Florida, Inc., to facilitate establishment of
54	the SURE Venture Capital Fund; specifying criteria of the
55	fund; providing for appointment of a board of directors
56	appointment committee; providing for selection of a board
57	of directors of the fund by Enterprise Florida, Inc.;
58	specifying criteria; providing for terms and requirements
59	of the directors; providing purposes of the fund;
60	providing duties and responsibilities of the fund;
61	authorizing the fund to charge a management fee for
62	certain purposes; providing for reimbursement for travel
63	and other direct expenses; providing for powers of the
64	fund; providing investment requirements for the fund;
65	requiring the board of directors to issue an annual report
66	on the activities of the fund; providing report
67	requirements; creating s. 288.9628, F.S.; creating the
68	Institute for the Commercialization of Public Research;
69	providing legislative intent; providing that the purpose
70	of the institute is to commercialize the products of
71	public research; providing responsibilities of the
72	institute; prohibiting the institute from having any
73	interest in any product supported by the institute;
74	providing appropriations; providing an effective date.
75
76	Be It Enacted by the Legislature of the State of Florida:
77
78	Section 1.  Section 288.956, Florida Statutes, is created
79	to read:
80	288.956  Sure Ventures Commercialization Program.--
81	(1)  The Sure Ventures Commercialization Program is
82	established for the purpose of financing the commercialization
83	of products and services developed from the research and
84	development conducted at public universities in this state. The
85	purpose of the program is to enhance the economy of this state
86	by converting products from research performed at public
87	universities to viable consumer products.
88	(2)  The Sure Ventures Commercialization Program is
89	designed so that a public university can apply for funding from
90	Sure Ventures Commercialization, Inc., in order to commercially
91	develop products and services resulting from research at the
92	university. Funding from the Sure Ventures Commercialization
93	Trust Fund may be used for a variety of premarketing activities,
94	including, but not limited to, securing patents, establishing
95	start-up companies, developing license agreements, attracting
96	private investment, and supporting other activities that are
97	necessary to establish commercially viable ventures for the
98	marketing and sale of products. Funds may not be used for
99	research or development.
100	Section 2.  Section 288.9561, Florida Statutes, is created
101	to read:
102	288.9561  Sure Ventures Commercialization, Inc.--
103	(1)  CREATION.--There is created Sure Ventures
104	Commercialization, Inc., a not-for-profit corporation, which
105	shall be registered, incorporated, organized, and operated under
106	chapter 617.
107	(a)  The corporation is not a unit of state government or a
108	political subdivision of the state. However, the Legislature
109	declares that the corporation is subject to s. 24, Art. I of the
110	State Constitution and chapter 119, relating to public records,
111	and the provisions of chapter 286 relating to public meetings
112	and records. Furthermore, all officers, directors, and employees
113	of the corporation must comply with the code of ethics for
114	public officers and employees under part III of chapter 112.
115	(b)  The corporation must establish at least one corporate
116	office in this state and appoint a registered agent.
117	(c)  The corporation may hire or contract for all personnel
118	necessary to properly execute the powers and duties bestowed
119	upon it within the funds appropriated to implement ss. 288.956-
120	288.9566. Using funds appropriated to implement this section,
121	the corporation may not expend more than $1 million each year
122	for personnel and necessary administrative expenditures,
123	including, but not limited to, travel and per diem, legal fees,
124	consultant's fees, rents and utilities, and audit fees.
125	(d)  Subject to appropriations, Enterprise Florida, Inc.,
126	shall provide administrative support to the corporation as
127	requested by the corporation. If the corporation is dissolved,
128	Enterprise Florida, Inc., becomes the corporation's successor in
129	interest and assumes all rights, duties, and obligations of the
130	corporation under any contract to which the corporation is then
131	a party and under law.
132	(2)  PURPOSE.--The corporation shall be organized to
133	receive, hold, invest, administer, and disburse funds
134	appropriated by the Legislature.
135	(3)  BOARD; MEMBERSHIP.--The corporation shall be governed
136	by a board of directors.
137	(a)  The board of directors shall consist of nine voting
138	members, of whom the Governor shall appoint three, the President
139	of the Senate shall appoint three, and the Speaker of the House
140	of Representatives shall appoint three.
141	(b)  As a candidate to be selected to the board of
142	directors, an individual must have prior experience with and
143	demonstrated expertise and competence in early stage business
144	investment, corporate management, the fiduciary management of
145	investment funds, or the commercialization of research products.
146	The individual must also demonstrate competence with respect to
147	the administration and management of a publicly listed company,
148	or experience and competence in public accounting, auditing, and
149	fiduciary responsibilities. A board member may not have an
150	interest in any grant proposal submitted to the corporation.
151	(c)  Each member of the board of directors shall be
152	appointed to a term of 4 years, except that for the initial
153	appointments the Governor, the President of the Senate, and the
154	Speaker of the House of Representatives each shall appoint one
155	member for a term of 1 year, one member for a term of 2 years,
156	and one member for a term of 4 years in order to achieve
157	staggered terms among the members of the board. A member is not
158	eligible for reappointment to the board, except that a member
159	appointed to an initial term of 1 year or 2 years may be
160	reappointed for an additional term of 4 years, and a person
161	appointed to fill a vacancy having 2 years or less remaining on
162	the term may be reappointed for an additional term of 4 years.
163	The Governor, the President of the Senate, and the Speaker of
164	the House of Representatives shall make their initial
165	appointments to the board by October 1, 2007.
166	(d)  The Governor, the President of the Senate, or the
167	Speaker of the House of Representatives, respectively, shall
168	fill a vacancy on the board of directors, according to who
169	appointed the member whose vacancy is to be filled or whose term
170	has expired. A vacancy that occurs before the scheduled
171	expiration of the term of the member shall be filled for the
172	remainder of the unexpired term. A board member whose term has
173	expired shall continue to serve until his or her replacement has
174	been appointed.
175	(e)  Each member of the board of directors who is not
176	otherwise required to file financial disclosure under s. 8, Art.
177	II of the State Constitution or s. 112.3144 shall file
178	disclosure of financial interests under s. 112.3145.
179	(f)1.  A person appointed to the board of directors must
180	agree to refrain from having any direct interest in any
181	contract, franchise, privilege, or other benefit arising from a
182	university project receiving financing from the board during the
183	term of his or her appointment and for 2 years after the
184	termination of the appointment.
185	2.  If a person accepts a direct interest in any contract,
186	franchise, privilege, or other benefit granted by the
187	institution or affiliate within 2 years after the termination of
188	his or her service on the board, the person commits a
189	misdemeanor of the first degree, punishable as provided in s.
190	775.083 or s. 775.084.
191	(g)  Members of the board of directors shall receive no
192	compensation for their services but are entitled to receive
193	reimbursement for necessary expenses, including travel and per
194	diem expenses, incurred in the performance of their duties.
195	(h)  Each member of the board of directors is accountable
196	for the proper performance of his or her duties of office, and
197	each member owes a fiduciary duty to the people of the state to
198	ensure that funds provided in furtherance of this section are
199	disbursed and used as prescribed by law and contract and in the
200	best interests of the state.
201	(i)  The Governor, the President of the Senate, or the
202	Speaker of the House of Representatives, according to which
203	officer appointed the member, may remove a member for
204	malfeasance, misfeasance, neglect of duty, incompetence,
205	permanent inability to perform official duties, unexcused
206	absence from three consecutive meetings of the board, arrest or
207	indictment for a crime that is a felony or a misdemeanor
208	involving theft or a crime of dishonesty, or pleading nolo
209	contendere to, or being found guilty of, any crime.
210	(4)  ORGANIZATION; MEETINGS.--
211	(a)1.  The board of directors shall annually elect a
212	chairperson and a vice chairperson from among the board's
213	members. The members may, by a vote of five of the nine board
214	members, remove a member from the position of chairperson or
215	vice chairperson before the expiration of his or her term as
216	chairperson or vice chairperson. His or her successor shall be
217	elected to serve for the balance of the removed chairperson's or
218	vice chairperson's term.
219	2.  The chairperson shall ensure that records are kept of
220	the proceedings of the board of directors and is the custodian
221	of all books, documents, and papers filed with the board; the
222	minutes of meetings of the board; and the official seal of the
223	corporation.
224	(b)1.  The board of directors shall meet upon the call of
225	the chairperson or at the request of a majority of the members,
226	but not less than twice each calendar year if a university
227	request for funding under this section is pending.
228	2.  A majority of the voting members of the board of
229	directors constitutes a quorum. Except as otherwise provided in
230	this section, the board may take official action by a majority
231	vote of the members present at any meeting at which a quorum is
232	present. Members may not vote by proxy.
233	3.  A member of the board may participate in a meeting of
234	the board by telephone or videoconference through which each
235	member may hear every other member.
236	(5)  POWERS AND DUTIES.--The corporation shall be organized
237	to receive, hold, invest, administer, and disburse funds
238	appropriated by the Legislature in support of ss. 288.956-
239	288.9566 and to disburse any income generated from the
240	investment of these funds consistent with the purpose and
241	provisions of this section. In addition to the powers and duties
242	prescribed in chapter 617 and the articles and bylaws adopted
243	under that chapter, the corporation:
244	(a)  May make and enter into contracts and assume any other
245	functions that are necessary to carry out the provisions of this
246	section.
247	(b)  May enter into leases and contracts for the purchase
248	of real property and hold notes, mortgages, guarantees, or
249	security agreements to secure the performance of obligations of
250	the university under a contract.
251	(c)  May perform all acts and things necessary or
252	convenient to carry out the powers expressly granted in ss.
253	288.956-288.9566 and a contract entered into between the
254	corporation and a university.
255	(d)  May make expenditures from funds provided by this
256	state, including any necessary administrative expenditures
257	consistent with its powers.
258	(e)  Shall indemnify, and purchase and maintain insurance
259	on behalf of, directors, officers, and employees of the
260	corporation against any personal liability or accountability.
261	(f)  Shall disburse funds under this section and a contract
262	entered into between the corporation and a university.
263	(g)  Shall receive and review reports and financial
264	documentation provided by a university to ensure compliance with
265	this section and the contract.
266	(h)  Shall prepare an annual report as prescribed in
267	subsection (8).
268	(i)  May accept gifts, grants, donations, in-kind services,
269	or other goods and services for carrying out its purposes.
270	(6)  INVESTMENT OF FUNDS.--The corporation must enter into
271	an agreement with the State Board of Administration under which
272	funds received by the corporation which are not disbursed to a
273	university or invested must be invested by the State Board of
274	Administration on behalf of the corporation. Funds shall be
275	invested in suitable instruments authorized under s. 215.47 and
276	specified in investment guidelines established and agreed to by
277	the State Board of Administration and the corporation.
278	(7)  CONTRACTS FOR THE AWARD OF GRANTS.--
279	(a)  The corporation shall negotiate and execute contracts
280	with universities governing the terms of grants provided under
281	ss. 288.956-288.9566. The corporation may not execute the
282	contract unless the contract is approved by the affirmative vote
283	of at least six of the nine members of the board of directors.
284	(b)  Each contract, at a minimum, must contain provisions:
285	1.  Specifying the procedures and schedules that govern the
286	disbursement of funds under this section and specifying the
287	conditions or deliverables that the university must satisfy
288	before the release of each disbursement.
289	2.  Requiring the university to submit to the corporation a
290	business plan in a form and manner prescribed by the
291	corporation.
292	3.  Requiring the university to submit data to the
293	corporation concerning the activities and performance of
294	projects funded under this section and to provide to the
295	corporation an annual accounting of the expenditure of funds
296	disbursed under this section by August 1, 2008, and annually
297	thereafter.
298	4.  Requiring grant recipients to negotiate repayment to
299	the Sure Ventures Commercialization Trust Fund the amount of the
300	grant awarded to a project when the project generates sufficient
301	revenues to sustain a profitable operation.
302	(8)  ANNUAL REPORT.--By December 1 of each year, the
303	corporation shall prepare a report of the activities and
304	outcomes under ss. 288.956-288.9566 for the preceding fiscal
305	year and submit the report to the Governor, the President of the
306	Senate, and the Speaker of the House of Representatives. The
307	report, at a minimum, must include:
308	(a)  An accounting of the amount of grants awarded and
309	disbursed during the preceding fiscal year by project and
310	university.
311	(b)  Information concerning the amount and nature of
312	economic activity in this state generated through university
313	research projects receiving funding under ss. 288.956-288.9566.
314	(c)  Project level summaries of the information reported by
315	grant recipients in paragraph (7)(b).
316	(d)  A description of the benefits to this state resulting
317	from the grant program, including the number of businesses
318	created, associated industries started, and the growth of
319	related research projects at the university.
320	(e)  An independent audit of the corporation's receipts and
321	expenditures during the preceding fiscal year for personnel,
322	administration, and operational costs of the corporation.
323	(f)  A description of those projects funded by the grant
324	program in which two or more universities are working
325	cooperatively together to avoid duplicating the activities,
326	programs, and functions of the cooperating universities and to
327	leverage the expertise offered by other universities.
328	(9)  LIABILITY.--
329	(a)  The appropriation or disbursement of funds under this
330	section does not constitute a debt, liability, or obligation of
331	the state, any political subdivision of the state, or the
332	corporation or a pledge of the faith and credit of the state or
333	of any political subdivision of the state.
334	(b)  The appropriation or disbursement of funds under this
335	section does not subject the state, any political subdivision of
336	the state, or the corporation to liability related to the
337	research activities and research products that receive funding
338	under this section.
339	(10)  DEBT.--The corporation may not incur debt. This
340	prohibition includes long-term leases, promissory notes, loans,
341	lease-purchase agreements, certificates of participation, the
342	sale of bonds or revenue bonds, or the award or commitment to
343	award grants in excess of the unencumbered cash balance in the
344	Sure Ventures Commercialization Trust Fund.
345	Section 3.  Section 288.9562, Florida Statutes, is created
346	to read:
347	288.9562  Sure Ventures Commercialization Grant
348	Program.--The Sure Ventures Commercialization Grant Program is
349	established to provide early stage capital funding from the Sure
350	Ventures Commercialization Trust Fund in support of the
351	commercialization of university research products. Grants from
352	the Sure Ventures Commercialization Trust Fund shall be
353	disbursed under the following categories:
354	(1)  Phase One grants, which may not exceed $50,000 per
355	project, may be used to assist with early market research,
356	independent evaluation, consultation, and other initial
357	activities that may be required to develop an initial business
358	model for a university research product having the potential for
359	commercialization.
360	(2)  Phase Two grants, which may not exceed $100,000 per
361	project, may be used to match private investment in a university
362	research commercialization proposal. The university proposal
363	must have been successfully evaluated and developed into a level
364	of readiness contemplated for projects that have received Phase
365	One grants. Phase Two grants shall be used to develop a complete
366	business plan for the commercialization of a university research
367	product. For a Phase Two grant proposal, the university must
368	document the availability of $1 in private support for each $1
369	in state funding requested.
370	(3)  Phase Three grants, which may not exceed $250,000 per
371	project, may be used to match private investment relating to the
372	implementation of a completed business plan for a university
373	research product. For a Phase Three grant proposal, the
374	university must document the availability of $1 in private
375	support for each $1 in state funding requested.
376	Section 4.  Section 288.9563, Florida Statutes, is created
377	to read:
378	288.9563  Sure Ventures Commercialization grants;
379	application and approval procedures.--
380	(1)  A university, or any two or more universities, upon
381	approval of each university's board of trustees, may submit a
382	request to Sure Ventures Commercialization, Inc., for a grant to
383	facilitate the commercialization of a university research
384	product or the commercialization of a patent held by a
385	university.
386	(2)  Subject to the availability of trust funds, the
387	corporation shall periodically solicit specific proposals from
388	universities for grants approved by the corporation.
389	(a)1.  The corporation shall meet at least once every 6
390	months for the purpose of evaluating the grant proposals and for
391	awarding grants if the uncommitted balance in the Sure Ventures
392	Commercialization Trust Fund exceeds $750,000.
393	2.  The minimum time between the date when the notice for
394	the solicitation for proposals is issued and the date when the
395	finished proposal is received by the corporation may not be less
396	than 60 days. The corporation must approve or deny a completed
397	proposal not more than 60 days after receiving the proposal.
398	3.  The board of directors, by a majority vote, may
399	increase the time allotted to approve or deny the submitted
400	proposals by an additional 60 days when complex proposals
401	require additional time for proper evaluation.
402	(b)  The board shall establish guidelines prescribing the
403	criteria and format for proposed projects submitted by
404	universities.
405	(3)  When evaluating the projects submitted for funding
406	support through Sure Ventures Commercialization, Inc., the board
407	must consider the following criteria:
408	(a)  The potential return to the university which may be
409	reasonably assumed based on the business case presented in
410	support of the proposed project;
411	(b)  The potential for the creation of high-wage jobs
412	resulting from the success of the proposed project;
413	(c)  The potential of the proposed project to address
414	pressing needs of the residents of the state;
415	(d)  The potential of the proposed project to "spin-off"
416	other related business enterprises;
417	(e)  The potential of the proposed project to enhance the
418	economic competitiveness of the state and the university; and
419	(f)  The technical, financial, organizational, and
420	marketing feasibility of the project and its business plan.
421	(4)  The proposed project must be evaluated on its
422	individual merits.
423	Section 5.  Sections 288.9621, 288.9622, 288.9623,
424	288.9624, 288.9625, 288.9626, and 288.9628, Florida Statutes,
425	are created to read:
426	288.9621  Short title.--Sections 288.9621-288.9629 may be
427	cited as the "SURE Venture Capital Act."
428	288.9622  Findings and intent.--
429	(1)  The Legislature finds and declares that there is need
430	to increase the availability of seed capital and early stage
431	venture equity capital for emerging companies in this state
432	which are commercializing state university research, technology,
433	or patents, or commercializing in this state any other state-
434	supported research organization's technology, products, or
435	patents, including, without limitation, enterprises in life
436	sciences, information technology, advanced manufacturing
437	processes, aviation and aerospace, and homeland security and
438	defense, as well as other strategic technologies.
439	(2)  It is the intent of the Legislature that ss. 288.9621-
440	288.9629 serve to mobilize investment in a broad variety of
441	Florida-based, new technology companies within diversified
442	industries; retain private-sector investment criteria focused on
443	rate of return; use the services of a highly qualified manager
444	in the venture capital industry; facilitate the organization of
445	the SURE Venture Capital Fund as a coinvestor in seed and early
446	stage companies; market products developed in state universities
447	and other publicly funded entities located in this state; and
448	precipitate capital investment and extensions of credit to and
449	in the Sure Venture Capital Fund, and it is the further intent
450	of the Legislature that an institute be created to mentor,
451	market, and attract capital to such commercialization ventures.
452	(3)  It is the intent of the Legislature to mobilize
453	venture equity capital for investment in such a manner as to
454	result in a significant potential to create new businesses and
455	jobs in this state which are based on high-growth-potential
456	technologies, products, or services and which will further
457	diversify the economy of this state.
458	288.9623  Definitions.--As used in ss. 288.9621-288.9629:
459	(1)  "Board" means the board of trustees of the SURE Trust.
460	(2)  "Certificate" means a contract between the trust and a
461	designated investor or lender evidencing the terms of a
462	guarantee or incentive granted to a designated investor.
463	(3)  "Designated investor" means a person, other than the
464	board, who purchases an equity interest in the SURE Venture
465	Capital Fund, who is a party to a certificate, or who is a
466	lender to the SURE Venture Capital Fund.
467	(4)  "SURE Trust" or "trust" means a state beneficiary
468	public trust created under ss. 288.9621-288.9629.
469	(5)  "SURE Venture Capital Fund" or "fund" means the
470	private, for-profit limited liability company in which a
471	designated investor purchases an equity interest or to which a
472	designated investor extends credit.
473	(6)  "Tax credit" means a contingent tax credit issued
474	under ss. 288.9621-288.9629 or subsequent legislative action
475	which is available to offset tax liabilities imposed by this
476	state if the proceeds of the tax are payable to the General
477	Revenue Fund. A tax credit is not eligible to offset tax
478	liabilities imposed by a political subdivision within this
479	state.
480	288.9624  SURE Trust.--
481	(1)  PUBLIC TRUST.--The SURE Trust is created as a state
482	beneficiary public trust to be administered by the board. The
483	exercise by the board of powers conferred by this part is deemed
484	and held to be the performance of essential public purposes.
485	(2)  PUBLIC RECORDS AND MEETINGS.--
486	(a)  The trust is not a unit of state government or a
487	political subdivision of the state. However, the Legislature
488	declares that the trust is subject to s. 24, Art. I of the State
489	Constitution and chapter 119, relating to public records, and
490	the provisions of chapter 286 relating to public meetings and
491	records. Furthermore, all officers, trustees, and employees of
492	the trust must comply with the code of ethics for public
493	officers and employees under part III of chapter 112.
494	(b)  The trust must establish at least one corporate office
495	in this state and appoint a registered agent.
496	(c)  The trust may hire or contract for all personnel
497	necessary to properly execute the powers and duties bestowed
498	upon it within the funds appropriated to implement ss. 288.9621-
499	288.9629. Using funds appropriated to implement this section,
500	the trust may not expend more than $1 million each year for
501	personnel and necessary administrative expenditures, including,
502	but not limited to, travel and per diem, legal fees,
503	consultant's fees, rents and utilities, and audit fees.
504	(d)  Subject to appropriations, Enterprise Florida, Inc.,
505	shall provide administrative support to the trust as requested
506	by the trust. If the trust is dissolved, Enterprise Florida,
507	Inc., becomes the trust's successor in interest and assumes all
508	rights, duties, and obligations of the trust under any contract
509	to which the trust is then a party and under law.
510	(3)  PURPOSE.--The trust shall be organized to receive,
511	hold, invest, administer, and disburse funds appropriated by the
512	Legislature.
513	(4)  BOARD; MEMBERSHIP.--The trust shall be governed by a
514	board of trustees.
515	(a)  The board of trustees shall consist of nine voting
516	trustees, of whom the Governor shall appoint three, the
517	President of the Senate shall appoint three, and the Speaker of
518	the House of Representatives shall appoint three.
519	(b)  As a candidate to be selected to the board of
520	trustees, an individual must have prior experience with and
521	demonstrated expertise and competence in early stage business
522	investment, corporate management, the supervision of early stage
523	investment managers, venture capital investment, management of
524	entrepreneurial companies, the fiduciary management of
525	investment funds, and the commercialization of research
526	products. The individual must also demonstrate competence with
527	respect to the administration and management of a publicly
528	listed company, or experience and competence in public
529	accounting, auditing, and fiduciary responsibilities. A trustee
530	may not have an ownership interest in any entity to which a
531	certificate is issued or have any business relationship with any
532	investment manager hired by SURE Venture Capital Fund.
533	(c)  Each trustee of the board of trustees shall be
534	appointed to a term of 4 years, except that for the initial
535	appointments the Governor, the President of the Senate, and the
536	Speaker of the House of Representatives shall each appoint one
537	trustee for a term of 1 year, one trustee for a term of 2 years,
538	and one trustee for a term of 4 years in order to achieve
539	staggered terms among the trustees of the board. A trustee is
540	not eligible for reappointment to the board, except that a
541	trustee appointed to an initial term of 1 year or 2 years may be
542	reappointed for an additional term of 4 years, and a person
543	appointed to fill a vacancy having 2 years or less remaining on
544	the term may be reappointed for an additional term of 4 years.
545	The Governor, the President of the Senate, and the Speaker of
546	the House of Representatives shall make their initial
547	appointments to the board by October 1, 2007.
548	(d)  The Governor, the President of the Senate, or the
549	Speaker of the House of Representatives, respectively, shall
550	fill a vacancy on the board of trustees, according to who
551	appointed the trustee whose vacancy is to be filled or whose
552	term has expired. A vacancy that occurs before the scheduled
553	expiration of the term of the trustee shall be filled for the
554	remainder of the unexpired term. A trustee whose term has
555	expired shall continue to serve until his or her replacement has
556	been appointed.
557	(e)  Each trustee who is not otherwise required to file
558	financial disclosure under s. 8, Art. II of the State
559	Constitution or s. 112.3144 shall file disclosure of financial
560	interests under s. 112.3145.
561	(f)1.  A trustee appointed to the board must agree to
562	refrain from having any direct interest in any contract,
563	franchise, privilege, or other benefit arising from a project
564	receiving financing from the board during the term of his or her
565	appointment and for 2 years after the termination of the
566	appointment.
567	2.  If a trustee accepts a direct interest in any contract,
568	franchise, privilege, or other benefit granted by the
569	institution or affiliate within 2 years after the termination of
570	his or her service on the board, the trustee commits a
571	misdemeanor of the first degree, punishable as provided in s.
572	775.083 or s. 775.084.
573	(g)  A trustee may not receive compensation for his or her
574	services, but is entitled to receive reimbursement for necessary
575	expenses, including travel and per diem expenses, incurred in
576	the performance of his or her duties.
577	(h)  A trustee is accountable for the proper performance of
578	the duties of office, and each trustee owes a fiduciary duty to
579	the people of the state to ensure that funds provided in
580	furtherance of ss. 288.9621-288.9629 are disbursed and used as
581	prescribed by law and contract and in the best interests of the
582	state.
583	(i)  The Governor, the President of the Senate, or the
584	Speaker of the House of Representatives, according to which
585	officer appointed the trustee, may remove a trustee for
586	malfeasance, misfeasance, neglect of duty, incompetence,
587	permanent inability to perform official duties, unexcused
588	absence from three consecutive meetings of the board, arrest or
589	indictment for a crime that is a felony or a misdemeanor
590	involving theft or a crime of dishonesty, or pleading nolo
591	contendere to, or being found guilty of, any crime.
592	(5)  ORGANIZATION; MEETINGS.--
593	(a)1.  The board of trustees shall annually elect a
594	chairperson and a vice chairperson from among the board's
595	trustees. The trustees may, by a vote of five of the nine board
596	trustees, remove a trustee from the position of chairperson or
597	vice chairperson before the expiration of his or her term as
598	chairperson or vice chairperson. His or her successor shall be
599	elected to serve for the balance of the removed chairperson's or
600	vice chairperson's term.
601	2.  The chairperson is responsible for ensuring that
602	records are kept of the proceedings of the board of trustees and
603	is the custodian of all books, documents, and papers filed with
604	the board; the minutes of meetings of the board; and the
605	official seal of the trust.
606	(b)1.  The board of trustees shall meet upon the call of
607	the chairperson or at the request of a majority of the trustees,
608	but not less than twice each calendar year if a request for a
609	coinvestment under this section is pending.
610	2.  A majority of the voting trustees of the board
611	constitutes a quorum. Except as otherwise provided in this
612	section, the board may take official action by a majority vote
613	of the trustees present at any meeting at which a quorum is
614	present. Trustees may not vote by proxy.
615	3.  A trustee may participate in a meeting of the board by
616	telephone or videoconference through which each trustee may hear
617	every other trustee.
618	(6)  POWERS AND DUTIES.--The trust shall be organized to
619	receive, hold, invest, administer, and disburse funds
620	appropriated by the Legislature and shall disburse any income
621	generated from the investment of these funds consistent with the
622	purpose and provisions of ss. 288.9621-288.9629. In addition to
623	any other powers and duties ascribed to the trust in ss.
624	288.9621-288.9629, the trust:
625	(a)  May make and enter into contracts and assume any other
626	functions that are necessary to carry out this section.
627	(b)  May enter into leases and contracts for the purchase
628	of real property and hold notes, mortgages, guarantees, or
629	security agreements to secure the performance of a contract.
630	(c)  May perform all acts and things necessary or
631	convenient to carry out the powers expressly granted in ss.
632	288.9621-288.9629 and a contract entered into between the trust
633	and a coinvestor.
634	(d)  May make expenditures from funds provided by this
635	state, including any necessary administrative expenditures
636	consistent with its powers.
637	(e)  Shall indemnify, and purchase and maintain insurance
638	on behalf of, trustees, officers, and employees of the trust
639	against any personal liability or accountability.
640	(f)  Shall disburse funds under this section and a contract
641	entered into between the trust and a coinvestor.
642	(g)  Shall receive and review reports and financial
643	documentation provided by a coinvestor to ensure compliance with
644	ss. 288.9621-288.9626 and the contract.
645	(h)  Shall prepare an annual report as prescribed in
646	subsection (7).
647	(i)  May accept gifts, grants, donations, in-kind services,
648	or other goods and services for carrying out its purposes.
649	(7)  ANNUAL REPORT.--By December 1 of each year, the trust
650	shall prepare a report of the activities and outcomes of the
651	trust and submit the report to the Governor, the President of
652	the Senate, and the Speaker of the House of Representatives. The
653	report, at a minimum, must include:
654	(a)  An accounting of the contracts entered into during the
655	preceding fiscal year between the trust and designated investors
656	and lenders.
657	(b)  Information concerning the amount and nature of
658	economic activity in this state generated through projects
659	receiving funding from the trust.
660	(c)  Project summaries of the information reported by fund
661	recipients in paragraph (b).
662	(d)  A description of the benefits to this state resulting
663	from the trust program, including the number of businesses
664	created, associated industries started, and the growth of
665	related research projects.
666	(e)  An independent audit of the trust's receipts and
667	expenditures during the preceding fiscal year for personnel,
668	administration, and operational costs of the trust.
669	(f)  A description of those projects supported by the trust
670	in which two or more universities or other state-supported
671	research entities are working cooperatively together to avoid
672	duplicating the activities, programs, and functions of the
673	cooperating universities or entities and to leverage the
674	expertise offered by other universities and state-supported
675	research entities.
676	(8)  LIABILITY.--
677	(a)  The appropriation or disbursement of funds under this
678	section does not constitute a debt, liability, or obligation of
679	the state, any political subdivision of the state, or the trust
680	or a pledge of the faith and credit of the state or of any
681	political subdivision of the state.
682	(b)  The appropriation or disbursement of funds under this
683	section does not subject the state, any political subdivision of
684	the state, or the trust to liability related to the research
685	activities and research products that receive funding under this
686	section.
687	(9)  DEBT.--The trust may not incur debt. This prohibition
688	includes long-term leases, promissory notes, loans,
689	lease-purchase agreements, certificates of participation, the
690	sale of bonds or revenue bonds, and the award or commitment to
691	awards in excess of the unencumbered cash balance in the SURE
692	Venture Capital Fund.
693	(10)  ACTIVITIES.--The board may engage consultants, expend
694	funds, invest funds, contract, bond or insure against loss,
695	provide guarantees or other incentives, hold transferable tax
696	credits, sell tax credits, or enter into any financial or other
697	transaction or perform any other act necessary to carry out its
698	purpose under ss. 288.9621-288.9629.
699	(11)  TAX CREDITS.--The board, in conjunction with the
700	Department of Revenue, shall develop a system for registration
701	of any tax credits received by the trust and transferred under
702	ss. 288.9621-288.9629. The board shall also create a system of
703	documentation that permits verification that any tax credit
704	claimed upon a tax return is validly held by the person claiming
705	such tax credit and properly taken in the year of claim and that
706	any transfers of the tax credit are made in accordance with the
707	requirements of ss. 288.9621-288.9629.
708	(12)  EMPLOYEES.--If the board elects to hire employees,
709	such persons shall be selected by the board based upon knowledge
710	and leadership in the field for which the person performs
711	services for the board. The board shall charge fees for its
712	guarantees to designated investors or for other services such
713	that the board's operations may be conducted without subsequent
714	legislative appropriation.
715	288.9625  Issuance of tax credits.--
716	(1)  The trust shall receive and hold for the purposes of
717	ss. 288.9621-288.9629 tax credits that may be used to reduce any
718	tax liability imposed by the state under chapter 212, chapter
719	220, s. 624.509, or s. 624.510. The total amount of tax credits
720	issued and transferred to the trust is $35 million. The tax
721	credits shall be transferable by the board as provided in this
722	section if such transferred tax credit is not exercisable before
723	July 1, 2012, or after July 1, 2037.
724	(2)  The board may transfer and sell tax credits solely for
725	the purpose of fulfilling, in whole or in part, any certificate
726	obligation issued by the board. The board shall immediately
727	notify the Governor, the President of the Senate, the Speaker of
728	the House of Representatives, and the Department of Revenue, in
729	writing, if any tax credit is transferred. The board shall be
730	notified immediately of any transfers of tax credits by persons
731	or businesses other than the board and shall notify the
732	Department of Revenue, in writing, of such transfers.
733	(3)(a)  The board shall ensure that no more than $10
734	million in tax credits is transferred, which may be claimed and
735	used to reduce taxes payable to the General Revenue Fund for any
736	single state fiscal year. The board shall clearly indicate upon
737	the face of the document transferring the tax credit the
738	principal amount of the tax credit and the state fiscal year or
739	years during which the credit may be claimed.
740	(b)  Tax credits may be transferred in increments of no
741	less than $100,000. A copy of the document transferring the tax
742	credit shall be transmitted to the executive director of the
743	Department of Revenue, who shall allow the credit to be claimed
744	against tax liabilities of the person or business consistent
745	with the terms appearing in the transfer document.
746	(4)  If the tax liabilities of the taxpayer are
747	insufficient to exhaust the tax credit for which the taxpayer is
748	eligible, the balance of the tax credit may be refunded by the
749	state. If a tax credit granted under this section is not claimed
750	in the year designated for claiming the credit on the transfer
751	document, any return for the year in which the credit was
752	eligible to be claimed may be amended to claim the credit within
753	the time specified by ss. 95.091 and 215.26.
754	(5)  Persons or businesses to which tax credits under this
755	section are transferred shall retain documentation supporting
756	eligibility to claim the tax credits and evidence of the
757	transfer of the tax credits, if applicable, until the time
758	provided to audit the tax returns on which the tax credits were
759	claimed has passed.
760	(6)  The Department of Revenue, in conjunction with the
761	board, may adopt rules governing the manner and form of
762	documentation required to claim tax credits granted or
763	transferred under this section and may establish guidelines as
764	to the requisites for an affirmative showing of qualification
765	for tax credits granted or transferred under this section.
766	(7)  An insurance company claiming a credit against premium
767	tax liability under this section is not required to pay any
768	additional retaliatory tax levied pursuant to s. 624.5091 as a
769	result of claiming such credit. Because credits under this
770	section are available to an insurance company, s. 624.5091 does
771	not limit such credit in any manner.
772	(8)  Any original sale of tax credits by the board shall be
773	by competitive bidding unless the sale is for the full face
774	value of the credits.
775	288.9626  SURE Venture Capital Fund.--
776	(1)(a)  At the request of the board, Enterprise Florida,
777	Inc., shall facilitate the creation of the SURE Venture Capital
778	Fund, a private corporation. Enterprise Florida, Inc., shall be
779	the corporation's sole shareholder or member. The corporation is
780	not a public corporation or instrumentality of the state.
781	(b)  The purpose of the SURE Venture Capital Fund is to
782	select an early stage venture capital investment advisor,
783	negotiate for investment capital or loan proceeds from private,
784	institutional, or banking sources having the benefit of
785	guarantees from the SURE Trust and coinvest capital in companies
786	in this state which are accepted into or promoted by the
787	Institute for the Commercialization of Public Research. The fund
788	shall manage its business affairs and conduct business
789	consistent with its organizational documents and the purposes
790	set forth in this section.
791	(2)(a)  The vice chair of Enterprise Florida, Inc., shall
792	select from among its sitting board of directors a five-person
793	appointment committee. The appointment committee shall select
794	five initial members of a board of directors for the fund.
795	(b)  The persons elected to the initial board of directors
796	by the appointment committee shall include persons who have
797	expertise in the area of the selection and supervision of early
798	stage investment managers or in the fiduciary management of
799	investment funds and other areas of expertise as considered
800	appropriate by the appointment committee.
801	(c)  After election of the initial board of directors,
802	vacancies on the board shall be filled by vote of the board of
803	directors of Enterprise Florida, Inc., and board members shall
804	serve terms as provided in the fund's organizational documents.
805	(d)  Members of the board are subject to any restrictions
806	on conflicts of interest specified in the organizational
807	documents and may not have an interest in any venture capital
808	investment selected by the corporation under ss. 288.9621-
809	288.9629 or in any investments made by the SURE Venture Capital
810	Fund.
811	(3)  The board shall organize the SURE Venture Capital
812	Fund, select an early stage venture capital investment fund
813	allocation manager, negotiate the terms of a contract with the
814	SURE Venture Capital Fund allocation manager, execute the
815	contract with the selected venture capital investment fund
816	allocation manager on behalf of the SURE Venture Capital Fund,
817	manage the business affairs of the SURE Venture Capital Fund,
818	such as accounting, audit, insurance, and related requirements,
819	and receive investment returns and reinvest the investment
820	returns in the fund in order to provide additional venture
821	capital investments designed to result in a significant
822	potential to create new businesses and jobs in this state and
823	further diversify the economy of this state.
824	(4)  Upon organization, the board shall conduct a national
825	solicitation for investment plan proposals from qualified
826	venture capital investment fund allocation managers for the
827	raising and investing of capital by the trust. Any proposed
828	investment plan must address the applicant's level of
829	experience, quality of management, investment philosophy and
830	process, provability of success in fundraising, prior investment
831	fund results, and plan for achieving the purposes of this act.
832	The board shall select only venture capital investment fund
833	managers having demonstrated expertise in the management of and
834	investment in companies.
835	(5)  The board may charge a management fee on assets under
836	management in the fund. The fee shall be in addition to any fee
837	charged to the fund by the venture capital investment fund
838	allocation manager, but the fee shall be charged only to pay for
839	reasonable and necessary costs of the fund.
840	(6)  A member of the board of directors shall receive no
841	compensation for his or her services, but is entitled to receive
842	reimbursement for necessary expenses, including travel and per
843	diem expenses, incurred in the performance of his or her duties.
844	(7)  The fund shall have all powers granted under its
845	organizational documents and shall indemnify members to the
846	broadest extent permissible under the laws of this state.
847	(8)(a)  The fund shall invest and emphasize investment in
848	early stage venture capital funds focusing on opportunities in
849	this state. The investments by the fund shall be in direct
850	investments in individual businesses approved by the trust. The
851	fund shall coinvest with other venture capital funds having
852	experienced managers or management teams having demonstrated
853	expertise and a successful history in the investment of early
854	stage venture capital funds. The fund and its partners or
855	shareholders may negotiate any and all terms and conditions for
856	its investments, including drawback of management fees and other
857	provisions that maximize investment in seed and early stage
858	companies based in this state.
859	(b)  The fund shall invest directly only in companies in
860	this state which are accepted into or promoted by the Institute
861	for the Commercialization of Public Research. The fund shall
862	invest only if additional private capital is invested in an
863	amount equal to or greater than the investment of the fund, the
864	fund's reasonable due diligence determines that the company is
865	viable and has prospects for profitable operations, and the
866	company has manifested its intent to remain located in this
867	state. Not more than 15 percent of the fund's assets may be
868	invested in one company project.
869	(9)  If the fund is liquidated or has returned all capital
870	to designated investors in accordance with contractual
871	agreements, or if the guarantee capacity of the corporation, at
872	the sole discretion of the board, is sufficient for additional
873	certificates, a new funding of the SURE Venture Capital Fund may
874	be implemented for subsequent venture capital investments. If
875	the board takes exception to an additional funding, such
876	additional funding may be implemented only without the benefit
877	of certificates from the board.
878	(10)  The board shall issue an annual report concerning the
879	activities conducted by the SURE Venture Capital Fund and
880	present the report to the Governor, the President of the Senate,
881	and the Speaker of the House of Representatives. The annual
882	report must include, but need not be limited to, a copy of the
883	independent audit of the fund and a valuation of the assets of
884	the fund, the number of investments made or committed during the
885	fiscal year, the amount of debt or capital in or committed to
886	the fund for which certificates have been issued by the board,
887	and a general description of the companies receiving investment
888	by the fund and their associated industry. The annual report
889	shall also describe any sale of tax certificates and any sale of
890	tax certificates which is reasonably anticipated by the board in
891	order to meet its certificate obligations.
892	288.9628  Institute for the Commercialization of Public
893	Research.--There is established the Institute for the
894	Commercialization of Public Research.
895	(1)  It is the intent of the Legislature that the Institute
896	for the Commercialization of Public Research be established at a
897	public university in south Florida. Enterprise Florida, Inc.,
898	shall issue a request for proposals to public universities in
899	South Florida requesting proposals to fulfill the purposes of
900	the institute as described in this section. Enterprise Florida,
901	Inc., shall review the proposals in a committee appointed by its
902	board of directors which shall make a recommendation for final
903	selection. Final approval of the selected proposal must be by
904	the board of directors of Enterprise Florida, Inc., at one of
905	its duly noticed meetings.
906	(2)(a)  The purpose of the institute is to assist in the
907	commercialization of products developed by the research and
908	development activities of publicly supported universities and
909	colleges, research institutes, and other publicly supported
910	organizations within the state.
911	(b)  To be eligible for assistance, the company or
912	organization attempting to commercialize its product must be
913	accepted by the institute before receiving the institute's
914	assistance. The institute shall receive recommendations from any
915	publicly supported organization that a company that is
916	commercializing the research, technology, or patents from a
917	qualifying publicly supported organization should be accepted
918	into the institute.
919	(c)  The institute shall thereafter review the business
920	plans and technology information of each such recommended
921	company. If accepted, the institute shall mentor the company,
922	develop marketing information on the company, and use its
923	resources to attract capital investment into the company, as
924	well as bring other resources to the company which may foster
925	its effective management, growth, capitalization, technology
926	protection, marketing, or business success.
927	(3)  The institute shall:
928	(a)  Maintain a centralized location to showcase companies
929	and their technologies and products;
930	(b)  Develop an efficient process to inventory and
931	publicize companies and products that have been accepted by the
932	institute for commercialization;
933	(c)  Routinely communicate with private investors and
934	venture capital organizations regarding the investment
935	opportunities in its showcased companies;
936	(d)  Facilitate meetings between prospective investors and
937	eligible organizations in the institute;
938	(e)  Hire full-time staff who understand relevant
939	technologies needed to market companies to the angel investors
940	and venture capital investment community;
941	(f)  Operate within an allocated annual budget of $1
942	million or less; and
943	(g)  Develop cooperative relationships with publicly
944	supported organizations all of which work together to provide
945	resources or special knowledge that is likely to be helpful to
946	institute companies.
947	(4)  The institute may not develop or accrue any ownership,
948	royalty, or other such rights over or interest in companies or
949	products in the institute and shall maintain the secrecy of
950	proprietary information.
951	(5)  The institute may not charge for services rendered to
952	state universities and affiliated organizations, community
953	colleges, or state agencies.
954	Section 6.  The nonrecurring sum of $1 million is
955	appropriated from the General Revenue Fund to Sure Ventures
956	Commercialization, Inc., for the purpose of creating and
957	administering the Sure Ventures Commercialization Trust Fund as
958	created by this act during the 2007-2008 fiscal year.
959	Section 7.  The nonrecurring sum of $10 million is
960	appropriated from the General Revenue Fund to the Sure Ventures
961	Commercialization Trust Fund for the purpose of implementing the
962	provisions of this act during the 2007-2008 fiscal year.
963	Section 8.  The nonrecurring sum of $1 million is
964	appropriated from the General Revenue Fund to the SURE Venture
965	Capital Fund for the purpose of initiating activities necessary
966	to implement its responsibilities under this act for the 2007-
967	2008 fiscal year.
968	Section 9.  The nonrecurring sum of $1 million is
969	appropriated from the General Revenue Fund to the Institute for
970	the Commercialization of Public Research for the purpose of
971	initiating activities necessary to implement its
972	responsibilities under this act for the 2007-2008 fiscal year.
973	Section 10.  This act shall take effect July 1, 2007.

CODING: Words stricken are deletions; words underlined are additions.