Florida Senate - 2007                      COMMITTEE AMENDMENT
    Bill No. SB 2414
                        Barcode 314142
                            CHAMBER ACTION
              Senate                               House
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       03/22/2007 07:46 AM         .                    
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11  The Committee on Higher Education (Ring) recommended the
12  following amendment:
13  
14         Senate Amendment (with title amendment) 
15         Delete everything after the enacting clause
16  
17  and insert:  
18         Section 1.  Section 288.956, Florida Statutes, is
19  created to read:
20         288.956  Sure Ventures Commercialization Program.--
21         (1)  The Sure Ventures Commercialization Program is
22  established for the purpose of financing the commercialization
23  of products and services developed from the research and
24  development conducted at public universities in this state.
25  The purpose of the program is to enhance the economy of this
26  state by:
27         (a)  Converting products from research performed at
28  public universities into viable consumer products; and
29         (b)  Precipitating the formation of new Florida
30  companies to further develop and sell those products in the
31  commercial marketplace.
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Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 (2) The Sure Ventures Commercialization Program is 2 designed so that a public university can apply for funding 3 from Sure Ventures Commercialization, Inc., in order to 4 commercially develop products and services resulting from 5 research at the university. Funding from the Sure Ventures 6 Commercialization Trust Fund may be used for a variety of 7 premarketing activities, including, but not limited to, 8 securing patents, establishing start-up companies, developing 9 license agreements, attracting private investment, and 10 supporting other activities that are necessary to establish 11 commercially viable ventures for the marketing and sale of 12 products. Funds may not be used for research or development. 13 Section 2. Section 288.9561, Florida Statutes, is 14 created to read: 15 288.9561 Sure Ventures Commercialization, Inc.-- 16 (1) CREATION.--There is created Sure Ventures 17 Commercialization, Inc., a not-for-profit corporation, which 18 shall be registered, incorporated, organized, and operated 19 under chapter 617 with Enterprise Florida, Inc., as its sole 20 member. 21 (a) The corporation is not a unit of state government 22 or a political subdivision of the state. However, the 23 Legislature declares that the corporation is subject to s. 24, 24 Art. I of the State Constitution and chapter 119, relating to 25 public records, and the provisions of chapter 286 relating to 26 public meetings and records. Furthermore, all officers, 27 directors, and employees of the corporation must comply with 28 the code of ethics for public officers and employees under 29 part III of chapter 112. 30 (b) The corporation shall adopt suitable articles of 31 incorporation and bylaws and must establish at least one 2 3:31 PM 03/19/07 s2414d-he32-r4t
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 corporate office in this state and appoint a registered agent. 2 (c) The corporation may hire or contract for all 3 personnel necessary to properly execute the powers and duties 4 bestowed upon it within the funds appropriated to implement 5 ss. 288.956-288.9566. Using funds appropriated to implement 6 this section, the corporation may not expend more than $1 7 million each year for personnel and necessary administrative 8 expenditures, including, but not limited to, travel and per 9 diem, legal fees, consultant's fees, rents and utilities, and 10 audit fees. 11 (d) Subject to appropriations, Enterprise Florida, 12 Inc., shall contract to provide administrative support to the 13 corporation as requested by the corporation. If the 14 corporation is dissolved, Enterprise Florida, Inc., becomes 15 the corporation's successor in interest and assumes all 16 rights, duties, and obligations of the corporation under any 17 contract to which the corporation is then a party and under 18 law. 19 (2) PURPOSE.--The corporation shall be organized to 20 administer a commercialization grants program as defined in 21 this act with funding from the Sure Ventures Commercialization 22 Trust Fund, and the corporation may receive, hold, invest, 23 administer, and disburse funds appropriated by the 24 Legislature. 25 (3) BOARD; MEMBERSHIP.--The corporation shall be 26 governed by a board of directors. 27 (a) The board of directors shall consist of nine 28 voting members, of whom the Governor shall appoint three, the 29 President of the Senate shall appoint three, and the Speaker 30 of the House of Representatives shall appoint three. 31 (b) As a candidate to be selected to the board of 3 3:31 PM 03/19/07 s2414d-he32-r4t
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 directors, an individual must have prior experience with and 2 demonstrated expertise and competence in early stage business 3 investment, corporate management, the fiduciary management of 4 investment funds, or the commercialization of research 5 products. The individual must also demonstrate competence with 6 respect to the administration and management of a publicly 7 listed company, or experience and competence in public 8 accounting, auditing, and fiduciary responsibilities. A board 9 member may not have an interest in any grant proposal 10 submitted to the corporation. 11 (c) Each member of the board of directors shall be 12 appointed to a term of 4 years, except that for the initial 13 appointments the Governor, the President of the Senate, and 14 the Speaker of the House of Representatives each shall appoint 15 one member for a term of 1 year, one member for a term of 2 16 years, and one member for a term of 4 years in order to 17 achieve staggered terms among the members of the board. A 18 member is not eligible for reappointment to the board, except 19 that a member appointed to an initial term of 1 year or 2 20 years may be reappointed for an additional term of 4 years, 21 and a person appointed to fill a vacancy having 2 years or 22 less remaining on the term may be reappointed for an 23 additional term of 4 years. The Governor, the President of the 24 Senate, and the Speaker of the House of Representatives shall 25 make their initial appointments to the board by October 1, 26 2007. 27 (d) The Governor, the President of the Senate, or the 28 Speaker of the House of Representatives, respectively, shall 29 fill a vacancy on the board of directors, according to who 30 appointed the member whose vacancy is to be filled or whose 31 term has expired. A vacancy that occurs before the scheduled 4 3:31 PM 03/19/07 s2414d-he32-r4t
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 expiration of the term of the member shall be filled for the 2 remainder of the unexpired term. A board member whose term has 3 expired shall continue to serve until his or her replacement 4 has been appointed. 5 (e) Each member of the board of directors who is not 6 otherwise required to file financial disclosure under s. 8, 7 Art. II of the State Constitution or s. 112.3144 shall file 8 disclosure of financial interests under s. 112.3145. 9 (f)1. A person appointed to the board of directors 10 must agree to refrain from having any direct interest in any 11 contract, franchise, privilege, or other benefit arising from 12 a university project receiving financing from the board during 13 the term of his or her appointment and for 2 years after the 14 termination of the appointment. 15 2. If a person accepts a direct interest in any 16 contract, franchise, privilege, or other benefit granted by 17 the institution, an affiliate, or a corporation benefited by 18 Sure Ventures Commercialization Grant proceeds within 2 years 19 after the termination of his or her service on the board, the 20 person commits a misdemeanor of the first degree, punishable 21 as provided in s. 775.083 or s. 775.084. 22 (g) Members of the board of directors shall receive no 23 compensation for their services but are entitled to receive 24 reimbursement for necessary expenses, including travel and per 25 diem expenses, incurred in the performance of their duties. 26 (h) Each member of the board of directors is 27 accountable for the proper performance of his or her duties of 28 office, and each member owes a fiduciary duty to the people of 29 the state to ensure that funds provided in furtherance of this 30 section are disbursed and used as prescribed by law and 31 contract and in the best interests of the state. 5 3:31 PM 03/19/07 s2414d-he32-r4t
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 (i) The Governor, the President of the Senate, or the 2 Speaker of the House of Representatives, according to which 3 officer appointed the member, may remove a member for 4 malfeasance, misfeasance, neglect of duty, incompetence, 5 permanent inability to perform official duties, unexcused 6 absence from three consecutive meetings of the board, arrest 7 or indictment for a crime that is a felony or a misdemeanor 8 involving theft or a crime of dishonesty, or pleading nolo 9 contendere to, or being found guilty of, any crime. 10 (4) ORGANIZATION; MEETINGS.-- 11 (a)1. The board of directors shall annually elect a 12 chairperson and a vice chairperson from among the board's 13 members. The members may, by a vote of five of the nine board 14 members, remove a member from the position of chairperson or 15 vice chairperson before the expiration of his or her term as 16 chairperson or vice chairperson. His or her successor shall be 17 elected to serve for the balance of the removed chairperson's 18 or vice chairperson's term. 19 2. The chairperson shall ensure that records are kept 20 of the proceedings of the board of directors and is the 21 custodian of all books, documents, and papers filed with the 22 board; the minutes of meetings of the board; and the official 23 seal of the corporation. 24 (b)1. The board of directors shall meet upon the call 25 of the chairperson or at the request of a majority of the 26 members, but not less than twice each calendar year if a 27 university request for funding under this section is pending. 28 2. A majority of the voting members of the board of 29 directors constitutes a quorum. Except as otherwise provided 30 in this section, the board may take official action by a 31 majority vote of the members present at any meeting at which a 6 3:31 PM 03/19/07 s2414d-he32-r4t
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 quorum is present. Members may not vote by proxy. 2 3. A member of the board may participate in a meeting 3 of the board by telephone or videoconference through which 4 each member may hear every other member. 5 (5) POWERS AND DUTIES.--The corporation shall be 6 organized to receive, hold, invest, administer, and disburse 7 funds appropriated by the Legislature in support of ss. 8 288.956-288.9566 and to disburse any income generated from the 9 investment of these funds consistent with the purpose and 10 provisions of this section. In addition to the powers and 11 duties prescribed in chapter 617 and the articles and bylaws 12 adopted under that chapter, the corporation: 13 (a) May make and enter into contracts and assume any 14 other functions that are necessary to carry out the provisions 15 of this section. 16 (b) May enter into leases and hold notes, mortgages, 17 guarantees, or security agreements to secure the performance 18 of obligations of the university under a contract. 19 (c) May perform all acts and things necessary or 20 convenient to carry out the powers expressly granted in ss. 21 288.956-288.9566 and a contract entered into between the 22 corporation and a university. 23 (d) May make expenditures from funds provided by this 24 state, including any necessary administrative expenditures 25 consistent with its powers. 26 (e) Shall indemnify, and purchase and maintain 27 insurance on behalf of, directors, officers, and employees of 28 the corporation against any personal liability or 29 accountability. 30 (f) Shall disburse funds under this section and a 31 contract entered into between the corporation and a 7 3:31 PM 03/19/07 s2414d-he32-r4t
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 university. 2 (g) Shall receive and review reports and financial 3 documentation provided by a university to ensure compliance 4 with this section and the contract. 5 (h) Shall prepare an annual report as prescribed in 6 subsection (8). 7 (i) May accept gifts, grants, donations, in-kind 8 services, or other goods and services for carrying out its 9 purposes. 10 (6) INVESTMENT OF FUNDS.--The corporation may enter 11 into an agreement with the State Board of Administration under 12 which funds received by the corporation which are not 13 disbursed to a university or invested must be invested by the 14 State Board of Administration on behalf of the corporation. 15 Funds shall be invested in suitable instruments authorized 16 under s. 215.47 and specified in investment guidelines 17 established and agreed to by the State Board of Administration 18 and the corporation. 19 (7) CONTRACTS FOR THE AWARD OF GRANTS.-- 20 (a) The corporation shall negotiate and execute 21 contracts with universities governing the terms of grants 22 provided under ss. 288.956-288.9566. Grants must be approved 23 by a two-thirds vote of the board of directors when a quorum 24 is present at a duly noticed meeting. 25 (b) Each contract, at a minimum, must contain 26 provisions: 27 1. Specifying the procedures and schedules that govern 28 the disbursement of funds under this section and specifying 29 the conditions or deliverables that the university must 30 satisfy before the release of each disbursement. 31 2. Requiring the university to expend 95 percent of 8 3:31 PM 03/19/07 s2414d-he32-r4t
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 grant proceeds for described uses in the approved grant 2 application and not otherwise reduce grant proceeds with 3 facilities charges or fees by the university. 4 3. Requiring the university to submit data to the 5 corporation concerning the activities and performance of 6 projects funded under this section and to provide to the 7 corporation an annual accounting of the expenditure of funds 8 disbursed under this section by August 1 of each year until 1 9 year elapses from the university's final disbursement of all 10 grant funds received from the Sure Ventures Commercialization 11 Program. 12 (8) ANNUAL REPORT.--By December 1 of each year, the 13 corporation shall prepare a report of the activities and 14 outcomes under ss. 288.956-288.9566 for the preceding fiscal 15 year and submit the report to the Governor, the President of 16 the Senate, and the Speaker of the House of Representatives. 17 The report, at a minimum, must include: 18 (a) An accounting of the amount of grants awarded and 19 disbursed during the preceding fiscal year by project and 20 university. 21 (b) Project level summaries of the information 22 reported by grant recipients in paragraph (7)(b). 23 (c) A description of the benefits to this state 24 resulting from the grant program, including the number of 25 businesses created, associated industries started, and the 26 growth of related research projects at the university. 27 (d) An independent audit of the corporation's 28 financial statements, which should include a statement of 29 operations that reports receipts and expenditures during the 30 preceding fiscal year for personnel, administration, and 31 operational costs of the corporation. 9 3:31 PM 03/19/07 s2414d-he32-r4t
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 (e) A description of those projects funded by the 2 grant program in which two or more universities are working 3 cooperatively together to avoid duplicating the activities, 4 programs, and functions of the cooperating universities and to 5 leverage the expertise offered by other universities. 6 (9) LIABILITY.-- 7 (a) The appropriation or disbursement of funds under 8 this section does not constitute a debt, liability, or 9 obligation of the state, any political subdivision thereof, or 10 the corporation, or a pledge of the faith and credit of the 11 state or of any political subdivision. 12 (b) The appropriation or disbursement of funds under 13 this section does not subject the state, any political 14 subdivision, or the corporation to liability related to the 15 research activities, commercialization activities, and 16 research products that receive funding under this section. 17 (10) DEBT.--The corporation may not incur debt. This 18 prohibition includes long-term leases, promissory notes, 19 loans, lease-purchase agreements, certificates of 20 participation, the sale of bonds or revenue bonds, or the 21 award or commitment to award grants in excess of the 22 unencumbered cash balance in the Sure Ventures 23 Commercialization Trust Fund. 24 Section 3. Section 288.9562, Florida Statutes, is 25 created to read: 26 288.9562 Sure Ventures Commercialization Grant 27 Program.--The Sure Ventures Commercialization Grant Program is 28 established to provide early stage capital funding from the 29 Sure Ventures Commercialization Trust Fund in support of the 30 commercialization of university research products. Grants from 31 the Sure Ventures Commercialization Trust Fund shall be 10 3:31 PM 03/19/07 s2414d-he32-r4t
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 disbursed under the following categories: 2 (1) Phase One grants, which may not exceed $50,000 per 3 project, may be used to assist with early market research, 4 independent evaluation, consultation, and other initial 5 activities that may be required to develop an initial business 6 model for a university research product having the potential 7 for commercialization. 8 (2) Phase Two grants, which may not exceed $100,000 9 per project, may be used to match private investment in a 10 university research commercialization proposal. The university 11 proposal must have been successfully evaluated and developed 12 into a level of readiness contemplated for projects that have 13 received Phase One grants. Phase Two grants shall be used to 14 develop a complete business plan for the commercialization of 15 a university research product. For a Phase Two grant proposal, 16 the university must document the availability of $1 in private 17 support for each $1 in state funding requested. 18 (3) Phase Three grants, which may not exceed $250,000 19 per project, may be used to match private investment relating 20 to the implementation of a completed business plan for a 21 university research product. For a Phase Three grant proposal, 22 the university must document the availability of $1 in private 23 support for each $1 in state funding requested. 24 Section 4. Section 288.9563, Florida Statutes, is 25 created to read: 26 288.9563 Sure Ventures Commercialization grants; 27 application and approval procedures.-- 28 (1) A university, or any two or more universities, 29 upon approval by an authorized officer of the university, may 30 submit a request to Sure Ventures Commercialization, Inc., for 31 a grant to facilitate the commercialization of a university 11 3:31 PM 03/19/07 s2414d-he32-r4t
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 research product or the commercialization of a patent held by 2 a university. 3 (2) Subject to the availability of trust funds, the 4 corporation shall periodically solicit specific proposals from 5 universities for grants to be funded by the corporation. 6 (a)1. The corporation shall meet at least once every 6 7 months for the purpose of evaluating the grant proposals and 8 for awarding grants if the uncommitted balance in the Sure 9 Ventures Commercialization Trust Fund exceeds $750,000. 10 2. The minimum time between the date when the notice 11 for the solicitation for proposals is issued and the date when 12 the finished proposal is received by the corporation may not 13 be less than 60 days. The corporation must approve or deny a 14 completed proposal not more than 60 days after receiving the 15 proposal. 16 3. The board of directors, by a majority vote, may 17 increase the time allotted to approve or deny the submitted 18 proposals by an additional 60 days when complex proposals 19 require additional time for proper evaluation. 20 (b)1. The board shall establish guidelines prescribing 21 the criteria and format for proposed projects submitted by 22 universities. 23 2. A university need not receive prior stage grants to 24 be eligible for phase two or phase three grants. 25 (3) When evaluating the projects submitted for funding 26 support through Sure Ventures Commercialization, Inc., the 27 board must consider the following criteria: 28 (a) The potential return to the university which may 29 be reasonably assumed based on the business case presented in 30 support of the proposed project; 31 (b) The potential for the creation of high-wage jobs 12 3:31 PM 03/19/07 s2414d-he32-r4t
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 resulting from the success of the proposed project; 2 (c) The potential of the proposed project to address 3 pressing needs of the residents of the state; 4 (d) The potential of the proposed project to 5 "spin-off" other related business enterprises; 6 (e) The potential of the proposed project to enhance 7 the economic competitiveness of the state and the university; 8 and 9 (f) The technical, financial, organizational, and 10 marketing feasibility of the project and its business plan. 11 (4) The proposed project must be evaluated on its 12 individual merits. 13 Section 5. The nonrecurring sum of $1 million is 14 appropriated from the General Revenue Fund to Sure Ventures 15 Commercialization, Inc., for the purpose of creating and 16 organizing the corporation, implementing a grant program as 17 defined in this act, and carrying out the administration of 18 administering the Sure Ventures Commercialization Trust Fund 19 during the 2007-2008 fiscal year. 20 Section 6. The nonrecurring sum of $10 million is 21 appropriated from the General Revenue Fund to the Sure 22 Ventures Commercialization Trust Fund for the purpose of 23 implementing the provisions of this act during the 2007-2008 24 fiscal year. 25 Section 7. This act shall take effect July 1, 2007. 26 27 28 ================ T I T L E A M E N D M E N T =============== 29 And the title is amended as follows: 30 Delete everything before the enacting clause 31 13 3:31 PM 03/19/07 s2414d-he32-r4t
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 and insert: 2 A bill to be entitled 3 An act relating to commercialization of 4 university research; creating s. 288.956, F.S.; 5 providing legislative intent for the Sure 6 Ventures Commercialization Program; creating s. 7 288.9561, F.S.; creating Sure Ventures 8 Commercialization, Inc., a not-for-profit 9 corporation; requiring Enterprise Florida, 10 Inc., to provide administrative support to the 11 corporation and be its successor in interest; 12 providing for its administration by a board; 13 providing for appointment of board members; 14 providing for terms; providing for service 15 without compensation; providing for 16 reimbursement for per diem, travel, and other 17 direct expenses; providing criteria for 18 membership; providing for powers and duties of 19 the board; providing for hiring employees; 20 providing for meetings of the board; 21 authorizing the board to invest funds through 22 the State Board of Administration; providing 23 for contracts with state universities; 24 requiring the board to prepare and deliver an 25 annual report to the Governor and the 26 Legislature by a specified date; detailing the 27 content of the report; providing for exclusion 28 of liability by the corporation; creating s. 29 288.9562, F.S.; creating the Sure Ventures 30 Commercialization Grant Program; providing for 31 the types of grants that may be made to state 14 3:31 PM 03/19/07 s2414d-he32-r4t
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 2414 Barcode 314142 1 universities for the commercialization of 2 research projects; creating s. 288.9563, F.S.; 3 providing for grant application and approval 4 procedures; providing appropriations; providing 5 an effective date. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 15 3:31 PM 03/19/07 s2414d-he32-r4t