Senate Bill sb2378c1

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2007                           CS for SB 2378

    By the Committee on Commerce; and Senators Saunders and Lynn





    577-2598-07

  1                      A bill to be entitled

  2         An act relating to the Florida Research

  3         Commercialization Matching Grant Program;

  4         creating s. 288.9552, F.S.; providing

  5         legislative findings and intent; creating the

  6         program; providing definitions; creating a

  7         statewide advisory committee for certain

  8         purposes; providing for the members of the

  9         committee to be reimbursed for per diem and

10         travel expenses; requiring reports; designating

11         a fiduciary actor; providing for program

12         administrative costs, award disbursement, and

13         carry forward of program funding; providing for

14         a program administrator; providing

15         responsibilities; creating a grant selection

16         committee; providing responsibilities;

17         providing applicant eligibility guidelines;

18         providing an effective date.

19  

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

21  

22         Section 1.  Section 288.9552, Florida Statutes, is

23  created to read:

24         288.9552  Florida Research Commercialization Matching

25  Grant Program.--

26         (1)  PURPOSE; GOALS AND OBJECTIVES; CREATION OF

27  PROGRAM.--

28         (a)  The purpose of the Florida Research

29  Commercialization Matching Grant Program is to increase the

30  amount of federal funding coming to this state which will

31  produce the kind of distinctive technologies that drive

                                  1

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






    Florida Senate - 2007                           CS for SB 2378
    577-2598-07




 1  today's knowledge-based economy. By leveraging federal, state,

 2  and private-sector resources, the program intends to

 3  accelerate the innovation process and more efficiently

 4  transform research results into products in the marketplace.

 5         (b)  The matching grant program is specifically

 6  intended to be a catalyst for small or startup companies that

 7  can take advantage of federal and state partnerships in order

 8  to accelerate their growth and market penetration by helping

 9  to overcome the funding gap faced by many small companies that

10  are based in this state. Specific goals and objectives of the

11  program include:

12         1.  Increasing the amount of federal research moneys

13  received by small businesses in this state through awards from

14  the Small Business Innovation Research Program and Small

15  Business Technology Transfer Program of the Office of

16  Technology of the United States Small Business Administration.

17         2.  Accelerating the entry of new technology-based

18  products into the marketplace.

19         3.  Producing additional technology-based jobs for the

20  state.

21         4.  Providing leveraged resources to increase the

22  effectiveness and success of applicants' projects.

23         5.  Speeding commercialization of promising

24  technologies.

25         6.  Encouraging the establishment and growth of

26  high-quality, advanced technology firms in the state.

27         7.  Accelerating deal flow and enhancing the state's

28  investment infrastructure.

29         (c)  The Legislature creates the Florida Research

30  Commercialization Matching Grant Program for the purpose of

31  

                                  2

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






    Florida Senate - 2007                           CS for SB 2378
    577-2598-07




 1  accomplishing the goals and objectives specified in this

 2  section.

 3         (2)  STATEWIDE ADVISORY COMMITTEE.--A statewide

 4  advisory committee is created to develop programmatic policy,

 5  ensure statewide applicability of the matching grant program,

 6  establish grant award criteria, approve grant awards, review

 7  program progress and results, and communicate program results

 8  to state policymakers.

 9         (a)  The committee shall consist of 15 members

10  representing the diverse geography of the state. The Governor,

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

12  Representatives shall each appoint one member for a 4-year

13  term from each of the following:

14         1.  Florida university technology commercialization

15  organizations.

16         2.  Research institutes in the state.

17         3.  The state's early stage venture capital community.

18         4.  Entrepreneurs representing a startup company.

19         (b)  In addition, the Governor shall appoint one member

20  representing a regional technology development organization in

21  the state and one member of the board of the Florida Research

22  Consortium.

23         (c)  The chair of the Enterprise Florida, Inc.,

24  Technology Entrepreneurship and Capital Board Committee shall

25  serve on the committee. Committee members shall elect from the

26  membership a person to serve as the chair of the committee.

27  Seats vacated on the committee shall be filled in the same

28  manner in which they were appointed.

29         (d)  Members of the committee shall serve without

30  compensation but are entitled to reimbursement for per diem

31  

                                  3

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






    Florida Senate - 2007                           CS for SB 2378
    577-2598-07




 1  and travel expenses in accordance with s. 112.061 while

 2  performing their duties.

 3         (e)  Enterprise Florida, Inc., shall provide staff

 4  support for the committee.

 5         (f)  The committee shall hold its initial meeting no

 6  later than October 1, 2007. Subsequent meetings shall be held

 7  upon the call of the chair.

 8         (g)  Beginning September 1, 2008, and annually

 9  thereafter, the committee shall transmit an annual report to

10  the Governor, the President of the Senate, and the Speaker of

11  the House of Representatives for the previous fiscal year.

12         (3)  FIDUCIARY.--Enterprise Florida, Inc., shall accept

13  money appropriated by the Legislature for providing grants

14  through the matching grant program. Enterprise Florida, Inc.,

15  shall award money to an applicant if:

16         (a)  The statewide advisory committee approves the

17  award;

18         (b)  The applicant demonstrates that it has obtained a

19  federal Small Business Innovation Research Program or Small

20  Business Technology Transfer Program Phase II award; and

21         (c)  The applicant executes a performance contract with

22  Enterprise Florida, Inc.

23  

24  Unallocated legislative appropriations for the matching grant

25  program at the end of the fiscal year shall carry forward to

26  succeeding fiscal years under s. 288.904(1)(j).

27         (4)  PROGRAM ADMINISTRATOR.--Subject to appropriations,

28  Enterprise Florida, Inc., shall serve as program

29  administrator. Enterprise Florida, Inc., may contract for the

30  performance of all or some of its functions with a third

31  party. Not more than 10 percent of a legislative appropriation

                                  4

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






    Florida Senate - 2007                           CS for SB 2378
    577-2598-07




 1  may be used for administrative purposes. The responsibilities

 2  of the program administrator include, but are not limited to:

 3         (a)  Establishing and coordinating the grant selection

 4  committee;

 5         (b)  Administering the grant-selection process,

 6  including, but not limited to, issuing open-call requests for

 7  grant applications and receiving, reviewing, and processing

 8  grant applications;

 9         (c)  Serving as grant contract manager for recipients

10  of a matching grant;

11         (d)  Reporting program progress and results and

12  programmatic recommendations for change to the statewide

13  advisory committee;

14         (e)  Establishing a technical assistance network

15  composed of small business development centers, technology

16  incubators, and university technology transfer offices within

17  the state. Network members shall publicize the program and

18  facilitate participation in the matching grant program; and

19         (f)  Establishing a mechanism by which information

20  regarding grant projects may be made available to facilitate

21  additional angel, seed, or venture capital investment.

22         (5)  GRANT SELECTION COMMITTEE.--The grant selection

23  committee shall consist of not fewer than five members chosen

24  by the program administrator. The members must be experienced

25  in conducting, reviewing, and evaluating research and

26  development projects for commercialization potential or must

27  have a successful track record in developing technology

28  commercialization programs or managing investments in early

29  stage companies. The grant selection committee must review

30  grant applications using adopted grant criteria, recommend

31  grant awards and grant amounts to the statewide advisory

                                  5

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






    Florida Senate - 2007                           CS for SB 2378
    577-2598-07




 1  committee, and perform other duties as required by the program

 2  administrator. The amount of each grant awarded may not be

 3  less than $100,000 and not more than $250,000.

 4         (6)  ELIGIBILITY GUIDELINES.--

 5         (a)  An applicant for a research commercialization

 6  matching grant must be a corporation that is registered with

 7  the Secretary of State to operate in this state. If an

 8  applicant is not based in this state, a grant award is

 9  contingent upon the applicant successfully registering to do

10  business in this state.

11         (b)  An applicant must be a small company for which a

12  state matching grant is necessary for project development and

13  implementation.

14         (c)  An applicant must have received a federal Small

15  Business Innovation Research Program or Small Business

16  Technology Transfer Program Phase I award and have received an

17  invitation to submit an application for a Phase II award. If a

18  Phase II award has already been issued, the end date of the

19  federal award must be identified and justification must be

20  provided as to how these additional funds will enhance, not

21  supplant, the existing award.

22         (d)  An applicant must identify all sources of project

23  funding. Reported project funding must demonstrate that:

24         1.  At least 20 percent of the project's total funding

25  must come from the federal government.

26         2.  No more than 25 percent of the project's total

27  funding may be provided by the state grant. Funds from the

28  state matching grant program may not supplant or lessen the

29  amount of funds committed by other project partners.

30         3.  At least 25 percent of the project's total funding

31  must be provided by sources other than the state grant and the

                                  6

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






    Florida Senate - 2007                           CS for SB 2378
    577-2598-07




 1  Federal Government. Funding from the applicant or a partner

 2  may be used to satisfy this requirement. External funds may

 3  consist of either cash or in-kind contributions.

 4         (e)  Projects funded by the matching grant program must

 5  be conducted in this state.

 6         Section 2.  This act shall take effect July 1, 2007.

 7  

 8          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 9                         Senate Bill 2378

10                                 

11  This committee substitute clarifies provisions in the bill,
    and:
12  
    -    Specifies the duties and composition of the Statewide
13       Advisory Committee and the Grant Selection Committee;

14  -    Establishes Enterprise Florida, Inc., as the "fiduciary"
         through which program funds will flow and as the grant
15       program administrator;

16  -    Establishes a technical advisory network;

17  -    Revises applicant eligibility criteria; and

18  -    Deletes the $5 million appropriation.

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  7

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