Senate Bill sb2414c3
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Florida Senate - 2007 CS for CS for CS for SB 2414
By the Committees on Higher Education Appropriations;
Governmental Operations; Higher Education; and Senator Ring
605-2483-07
1 A bill to be entitled
2 An act relating to special postsecondary
3 education programs; amending s. 1004.226, F.S.;
4 amending the 21st Century Technology, Research,
5 and Scholarship Enhancement Act to include the
6 commercialization of products and services
7 developed from the research and development
8 conducted at state universities; requiring the
9 Florida Technology, Research, and Scholarship
10 Board to review and approve State University
11 Research Commercialization Assistance Grants;
12 requiring board members to refrain from having
13 any direct interest or derive any benefit from
14 a project receiving a grant under the program
15 created by the act; providing guidelines for a
16 state university to receive funding through the
17 program; requiring private matching funds;
18 requiring the board to periodically solicit
19 proposals of state universities; requiring that
20 the board submit an annual report to the
21 Governor and the Legislature; providing an
22 appropriation; providing an effective date.
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24 Be It Enacted by the Legislature of the State of Florida:
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26 Section 1. Subsection (4) of section 1004.226, Florida
27 Statutes, is amended, present subsection (7) of that section
28 is redesignated as subsection (8) and amended, and a new
29 subsection (7) is added to that section, to read:
30 1004.226 The 21st Century Technology, Research, and
31 Scholarship Enhancement Act.--
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Florida Senate - 2007 CS for CS for CS for SB 2414
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1 (4) FLORIDA TECHNOLOGY, RESEARCH, AND SCHOLARSHIP
2 BOARD.--The Florida Technology, Research, and Scholarship
3 Board is created within the Board of Governors of the State
4 University System to guide the establishment of Centers of
5 Excellence, and the attraction of world class scholars, and
6 the commercialization of products and services developed from
7 the research and development conducted at state universities.
8 (a) The board shall consist of 11 members. Five
9 members shall be appointed by the Governor, one of whom the
10 Governor shall appoint as chair of the board, one of whom must
11 be a member of the board of directors of Enterprise Florida,
12 Inc., and one of whom must be a member of the Board of
13 Governors of the State University System. Three members shall
14 be appointed by the President of the Senate, and three members
15 shall be appointed by the Speaker of the House of
16 Representatives. Appointed members must be representative of
17 business leaders, industrial researchers, academic
18 researchers, scientists, and leaders in the emerging and
19 advanced technology sector. Appointed members may not serve
20 for more than 4 years, and any vacancy that occurs during
21 these appointees' terms shall be filled in the same manner as
22 the original appointment. A majority of members constitutes a
23 quorum.
24 (b) Members of the board shall serve without
25 compensation, but are entitled to receive reimbursement for
26 per diem and travel expenses in accordance with s. 112.061
27 while in the performance of their duties.
28 (c) The Board of Governors shall provide staff support
29 for the activities of the board and per diem and travel
30 expenses for board members.
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1 (d) The board is charged with recommending criteria to
2 the Board of Governors for the 21st Century World Class
3 Scholars Program and with providing guidance to the Board of
4 Governors regarding the implementation and administration of
5 the Centers of Excellence Program.
6 (e) The board shall recommend to the Board of
7 Governors the qualifications, standards, and requirements for
8 approval of investments in Centers of Excellence under this
9 act. The board may form committees of its members and is
10 encouraged to consult with Enterprise Florida, Inc., the
11 Florida Research Consortium, Bio-Florida, IT Florida, the
12 Florida Aviation Aerospace Alliance, and any other entity
13 whose input may be helpful in determining the requirements and
14 standards for the program.
15 (f) The board shall review and approve State
16 University Research Commercialization Assistance Grants under
17 subsection (7). The board is encouraged to consult with
18 Enterprise Florida, Inc., entities that have prior experience
19 in early state business investment, and any other entity whose
20 input may be helpful in evaluating grant proposals.
21 (g) Members of the board must agree to refrain from
22 having any direct interest in any contract, franchise,
23 privilege, or other benefit arising from a state university
24 project receiving a State University Research
25 Commercialization Assistance Grant during the term of his or
26 her appointment and for 2 years after the termination of such
27 appointment. It is a misdemeanor of the first degree,
28 punishable as provided in s. 775.082 or s. 775.083, for a
29 person to serve on the board in violation of this paragraph or
30 to accept a direct interest in any contract, franchise,
31 privilege, or other benefit granted by the grant receipts
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1 within 2 years after the termination of his or her service on
2 the board.
3 (7) STATE UNIVERSITY RESEARCH COMMERCIALIZATION
4 ASSISTANCE GRANT PROGRAM.--The State University Research
5 Commercialization Assistance Grant Program is established to
6 promote the commercialization of university research products
7 for the purpose of enhancing the state's economy and the
8 state's public universities. All phase two and phase three
9 grants established by this program require one dollar in
10 private investment for each one dollar in state funding
11 provided. A state university may apply for early stage capital
12 funding for the purpose of developing products and services
13 resulting from university research. An application may include
14 joint participation in the development of products and
15 services by a cooperating university. Such funding may be used
16 by the university for a variety of premarketing activities,
17 including, but not limited to, securing patents, establishing
18 start-up companies, developing license agreements, attracting
19 private investment, and supporting other activities that are
20 necessary to establish commercially viable ventures for the
21 marketing and sale of products resulting from university
22 research. Funds may not be used for research or development.
23 (a) State University Research Commercialization
24 Assistance Grants may be provided under the following
25 categories:
26 1. Phase one grants, which may not exceed $50,000 per
27 project, shall be available to assist with early market
28 research, independent evaluation, consultation, and other
29 initial activities that may be required to develop an initial
30 business model for a university research product that has the
31 potential for commercialization.
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1 2. Phase two grants, which may not exceed $100,000 per
2 project, shall be available to assist with the development of
3 a complete business plan for the commercialization of a
4 university research product.
5 3. Phase three grants, which may not exceed $250,000
6 per project, shall be available for the implementation and
7 execution of a completed business plan for a university
8 research product.
9 (b) Based on the availability of funds, the board
10 shall periodically solicit proposals from state universities
11 for State University Research Commercialization Assistance
12 Grants. The board shall establish guidelines prescribing the
13 criteria and format for the submission of grant applications
14 by state universities. Any state university, upon approval of
15 its board of trustees, may submit a request to the board for a
16 grant to facilitate the commercialization of a university
17 research product or the commercialization of a patent held by
18 a state agency under a cooperative agreement between the state
19 agency and the university. A state university need not receive
20 prior stage grants in order to be eligible for phase two or
21 phase three grants. When evaluating the applications submitted
22 for funding, the board shall consider the following criteria:
23 1. The potential return to the university which may be
24 reasonably assumed based on the business case presented in
25 support of the proposed project;
26 2. The potential for the creation of high-wage jobs
27 resulting from the success of the proposed project;
28 3. The potential of the proposed project to address
29 pressing needs of the residents of the state;
30 4. The potential of the proposed project to enhance
31 the economic competitiveness of the state and the university;
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1 5. The technical, financial, organizational, and
2 marketing feasibility of the project and its business plan;
3 and
4 6. The potential of the proposed project to create
5 other related business enterprises.
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7 Each proposed project shall be evaluated on its individual
8 merits.
9 (c) The board shall negotiate and execute contracts
10 with state universities governing the terms of State
11 University Research Commercial Assistance Grants. The board
12 may not execute a contract unless the contract is approved by
13 the affirmative vote of at least 6 of the 11 members of the
14 board. Each contract, at a minimum, must contain provisions
15 that:
16 1. Specify the procedures and schedules that govern
17 the disbursement of funds under this section and specify the
18 conditions or deliverables that the state university must
19 satisfy before the release of each disbursement.
20 2. Require the state university to submit a business
21 plan in a form and manner prescribed by the board.
22 3. Require the state university to submit data to the
23 board concerning the activities and performance of projects
24 funded pursuant to this subsection and to provide to the board
25 an annual accounting of the expenditure of funds disbursed
26 under this subsection.
27 4. Require the state university to negotiate repayment
28 to the General Revenue Fund of the amount of the grant awarded
29 to a project when the project generates sufficient revenues to
30 sustain a profitable operation.
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1 5. Require the state university to expend 95 percent
2 of grant proceeds for described uses in the approved grant
3 application and not otherwise reduce grant proceeds with
4 facilities charges or fees by the university.
5 (d) Upon verification by the Board of Governors that a
6 state university has executed a contract with the board for a
7 State University Research Commercialization Assistance Grant,
8 the Board of Governors shall release grant funds to the
9 university.
10 (8)(7) ANNUAL REPORT.--The board, in cooperation with
11 the Board of Governors of the State University System and the
12 state universities or research centers receiving investments
13 under this act, shall issue an annual report by December 31
14 each year of the activities conducted, including the
15 accomplishments and overall economic benefits to the state,
16 the number of 21st Century World Class Scholars attracted, the
17 number of Centers of Excellence created or expanded, the
18 success of collaborations with related industries, the number
19 and amount of State University Research Commercialization
20 Assistance Grants awarded and repaid, and the success of these
21 programs. The annual report shall be presented to the
22 Governor, the President of the Senate, and the Speaker of the
23 House of Representatives. The annual report must include a
24 copy of an independent audit of the board and a review of the
25 progress of programs administered by the board.
26 Section 2. The nonrecurring sum of $10 million is
27 appropriated to the Board of Governors of the State University
28 System from the General Revenue Fund for the State University
29 Research Commercialization Grant Program created by this act.
30 Funds must be disbursed by the Board of Governors pursuant to
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Florida Senate - 2007 CS for CS for CS for SB 2414
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1 grant agreements and contracts by the Florida Technology,
2 Research, and Scholarship Board.
3 Section 3. This act shall take effect July 1, 2007.
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5 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
6 CS for CS for Senate Bill 2414
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8 The Committee Substitute for CS/CS/SB retains the university
commercialization grant program as the State University
9 Commercialization Assistance Grant Program.
10 The grants are to be awarded by the Florida Technology,
Research, and Scholarship Board, created by Chapter 2006-58,
11 L.O.F. rather than by a newly created independent board. A
$10 million appropriation for the grant program is provided.
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