Senate Bill sb2420c4

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    Florida Senate - 2007      CS for CS for CS for CS for SB 2420

    By the Committees on Transportation and Economic Development
    Appropriations; Finance and Tax; Governmental Operations;
    Commerce; and Senator Ring



    606-2647-07

  1                      A bill to be entitled

  2         An act relating to venture capital investment;

  3         amending s. 1004.226, F.S.; amending the 21st

  4         Century Technology, Research, and Scholarship

  5         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; creating s.

22         288.9625, F.S.; creating the Institute for the

23         Commercialization of Public Research; providing

24         that the institute is a not-for-profit

25         corporation; providing that the purpose of the

26         institute is to commercialize the products of

27         public research; providing for membership of

28         the board of directors; requiring the institute

29         to provide data to certain entities; providing

30         responsibilities of the institute; prohibiting

31         the institute from having any interest in any

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 1         product supported by the institute; creating s.

 2         288.9621, F.S.; providing a short title;

 3         creating s. 288.9622, F.S.; providing

 4         legislative findings and intent; creating s.

 5         288.9623, F.S.; providing definitions; creating

 6         s. 288.9624, F.S.; requiring Enterprise

 7         Florida, Inc., to facilitate creation of the

 8         Florida Opportunity Fund; specifying criteria

 9         of the fund; providing for appointment of an

10         appointment committee; providing for selection

11         of a board of directors of the fund by

12         Enterprise Florida, Inc.; specifying criteria;

13         providing for terms and requirements of the

14         directors; providing purposes of the fund;

15         providing duties and responsibilities of the

16         fund; authorizing the fund to negotiate all

17         contract terms; providing for reimbursement for

18         travel and other direct expenses; providing for

19         powers of the fund; providing investment

20         requirements for the fund; requiring the board

21         of directors to issue an annual report on the

22         activities of the fund; providing report

23         requirements; requiring a review by the Office

24         of Program Policy Analysis and Government

25         Accountability; providing appropriations;

26         providing an effective date.

27  

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

29  

30         Section 1.  Subsection (4) of section 1004.226, Florida

31  Statutes, is amended, present subsection (7) of that section

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 1  is redesignated as subsection (8) and amended, and a new

 2  subsection (7) is added to that section, to read:

 3         1004.226  The 21st Century Technology, Research, and

 4  Scholarship Enhancement Act.--

 5         (4)  FLORIDA TECHNOLOGY, RESEARCH, AND SCHOLARSHIP

 6  BOARD.--The Florida Technology, Research, and Scholarship

 7  Board is created within the Board of Governors of the State

 8  University System to guide the establishment of Centers of

 9  Excellence, and the attraction of world class scholars, and

10  the commercialization of products and services developed from

11  the research and development conducted at state universities.

12         (a)  The board shall consist of 11 members. Five

13  members shall be appointed by the Governor, one of whom the

14  Governor shall appoint as chair of the board, one of whom must

15  be a member of the board of directors of Enterprise Florida,

16  Inc., and one of whom must be a member of the Board of

17  Governors of the State University System. Three members shall

18  be appointed by the President of the Senate, and three members

19  shall be appointed by the Speaker of the House of

20  Representatives. Appointed members must be representative of

21  business leaders, industrial researchers, academic

22  researchers, scientists, and leaders in the emerging and

23  advanced technology sector. Appointed members may not serve

24  for more than 4 years, and any vacancy that occurs during

25  these appointees' terms shall be filled in the same manner as

26  the original appointment. A majority of members constitutes a

27  quorum.

28         (b)  Members of the board shall serve without

29  compensation, but are entitled to receive reimbursement for

30  per diem and travel expenses in accordance with s. 112.061

31  while in the performance of their duties.

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 1         (c)  The Board of Governors shall provide staff support

 2  for the activities of the board and per diem and travel

 3  expenses for board members.

 4         (d)  The board is charged with recommending criteria to

 5  the Board of Governors for the 21st Century World Class

 6  Scholars Program and with providing guidance to the Board of

 7  Governors regarding the implementation and administration of

 8  the Centers of Excellence Program.

 9         (e)  The board shall recommend to the Board of

10  Governors the qualifications, standards, and requirements for

11  approval of investments in Centers of Excellence under this

12  act. The board may form committees of its members and is

13  encouraged to consult with Enterprise Florida, Inc., the

14  Florida Research Consortium, Bio-Florida, IT Florida, the

15  Florida Aviation Aerospace Alliance, and any other entity

16  whose input may be helpful in determining the requirements and

17  standards for the program.

18         (f)  The board shall review and approve State

19  University Research Commercialization Assistance Grants under

20  subsection (7). The board is encouraged to consult with

21  Enterprise Florida, Inc., entities that have prior experience

22  in early state business investment, and any other entity whose

23  input may be helpful in evaluating grant proposals.

24         (g)  Members of the board must agree to refrain from

25  having any direct interest in any contract, franchise,

26  privilege, or other benefit arising from a state university

27  project receiving a State University Research

28  Commercialization Assistance Grant during the term of his or

29  her appointment and for 2 years after the termination of such

30  appointment. It is a misdemeanor of the first degree,

31  punishable as provided in s. 775.082 or s. 775.083, for a

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 1  person to serve on the board in violation of this paragraph or

 2  to accept a direct interest in any contract, franchise,

 3  privilege, or other benefit granted by the grant receipts

 4  within 2 years after the termination of his or her service on

 5  the board.

 6         (7)  STATE UNIVERSITY RESEARCH COMMERCIALIZATION

 7  ASSISTANCE GRANT PROGRAM.--The State University Research

 8  Commercialization Assistance Grant Program is established to

 9  promote the commercialization of university research products

10  for the purpose of enhancing the state's economy and the

11  state's public universities. All Phase Two and Phase Three

12  grants established by this program require one dollar in

13  private investment for each one dollar in state funding

14  provided. A state university may apply for early stage capital

15  funding for the purpose of developing products and services

16  resulting from university research. An application may include

17  joint participation in the development of products and

18  services by a cooperating university. Such funding may be used

19  by the university for a variety of premarketing activities,

20  including, but not limited to, securing patents, establishing

21  start-up companies, developing license agreements, attracting

22  private investment, and supporting other activities that are

23  necessary to establish commercially viable ventures for the

24  marketing and sale of products resulting from university

25  research. Funds may not be used for research or development.

26         (a)  State University Research Commercialization

27  Assistance Grants may be provided under the following

28  categories:

29         1.  Phase One grants, which may not exceed $50,000 per

30  project, shall be available to assist with early market

31  research, independent evaluation, consultation, and other

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 1  initial activities that may be required to develop an initial

 2  business model for a university research product that has the

 3  potential for commercialization.

 4         2.  Phase Two grants, which may not exceed $100,000 per

 5  project, shall be available to assist with the development of

 6  a complete business plan for the commercialization of a

 7  university research product.

 8         3.  Phase Three grants, which may not exceed $250,000

 9  per project, shall be available for the implementation and

10  execution of a completed business plan for a university

11  research product.

12         (b)  Based on the availability of funds, the board

13  shall periodically solicit proposals from state universities

14  for State University Research Commercialization Assistance

15  Grants. The board shall establish guidelines prescribing the

16  criteria and format for the submission of grant applications

17  by state universities. Any state university, upon approval of

18  its board of trustees, may submit a request to the board for a

19  grant to facilitate the commercialization of a university

20  research product or the commercialization of a patent held by

21  a state agency under a cooperative agreement between the state

22  agency and the university. A state university need not receive

23  prior stage grants in order to be eligible for Phase Two or

24  Phase Three grants. When evaluating the applications submitted

25  for funding, the board shall consider the following criteria:

26         1.  The potential return to the university which may be

27  reasonably assumed based on the business case presented in

28  support of the proposed project;

29         2.  The potential for the creation of high-wage jobs

30  resulting from the success of the proposed project;

31  

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 1         3.  The potential of the proposed project to address

 2  pressing needs of the residents of the state;

 3         4.  The potential of the proposed project to enhance

 4  the economic competitiveness of the state and the university;

 5         5.  The technical, financial, organizational, and

 6  marketing feasibility of the project and its business plan;

 7  and

 8         6.  The potential of the proposed project to create

 9  other related business enterprises.

10  

11  Each proposed project shall be evaluated on its individual

12  merits.

13         (c)  The board shall negotiate and execute contracts

14  with state universities governing the terms of State

15  University Research Commercial Assistance Grants. The board

16  may not execute a contract unless the contract is approved by

17  the affirmative vote of at least 6 of the 11 members of the

18  board. Each contract, at a minimum, must contain provisions

19  that:

20         1.  Specify the procedures and schedules that govern

21  the disbursement of funds under this section and specify the

22  conditions or deliverables that the state university must

23  satisfy before the release of each disbursement.

24         2.  Require the state university to submit a business

25  plan in a form and manner prescribed by the board.

26         3.  Require the state university to submit data to the

27  board concerning the activities and performance of projects

28  funded pursuant to this subsection and to provide to the board

29  an annual accounting of the expenditure of funds disbursed

30  under this subsection.

31  

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 1         4.  Require the state university to negotiate repayment

 2  to the General Revenue Fund of the amount of the grant awarded

 3  to a project when the project generates sufficient revenues to

 4  sustain a profitable operation.

 5         5.  Require the state university to expend 95 percent

 6  of grant proceeds for described uses in the approved grant

 7  application and not otherwise reduce grant proceeds with

 8  facilities charges or fees by the university.

 9         (d)  Upon verification by the Board of Governors that a

10  state university has executed a contract with the board for a

11  State University Research Commercialization Assistance Grant,

12  the Board of Governors shall release grant funds to the

13  university.

14         (8)(7)  ANNUAL REPORT.--The board, in cooperation with

15  the Board of Governors of the State University System and the

16  state universities or research centers receiving investments

17  under this act, shall issue an annual report by December 31

18  each year of the activities conducted, including the

19  accomplishments and overall economic benefits to the state,

20  the number of 21st Century World Class Scholars attracted, the

21  number of Centers of Excellence created or expanded, the

22  success of collaborations with related industries, the number

23  and amount of State University Research Commercialization

24  Assistance Grants awarded and repaid, and the success of these

25  programs. The annual report shall be presented to the

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

27  House of Representatives. The annual report must include a

28  copy of an independent audit of the board and a review of the

29  progress of programs administered by the board.

30         Section 2.  Section 288.9625, Florida Statutes, is

31  created to read:

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 1         288.9625  Institute for the Commercialization of Public

 2  Research.--There is established the Institute for the

 3  Commercialization of Public Research.

 4         (1)  The institute shall be a not-for-profit

 5  corporation registered, incorporated, and operated in

 6  accordance with chapter 617.

 7         (2)  The purpose of the institute is to assist in the

 8  commercialization of products developed by the research and

 9  development activities of universities and colleges, research

10  institutes, and publicly supported organizations within the

11  state. The institute shall operate to fulfill its purpose and

12  in the best interests of the state. The institute:

13         (a)  Shall be a corporation primarily acting as an

14  instrumentality of the state, pursuant to s. 768.28(2), for

15  the purposes of sovereign immunity;

16         (b)  Is not an agency within the meaning of s.

17  20.03(11);

18         (c)  Is subject to the open records and meetings

19  requirements of s. 24, Art. I of the State Constitution,

20  chapter 119, and s. 286.011;

21         (d)  Is not subject to the provisions of chapter 287;

22         (e)  Shall be governed by the code of ethics for public

23  officers and employees as set forth in part III of chapter

24  112;

25         (f)  Is not authorized to create corporate

26  subsidiaries;

27         (g)  Shall support existing commercialization efforts

28  at Florida universities; and

29         (h)  May not supplant, replace, or direct existing

30  technology transfer operations or other commercialization

31  programs, including incubators and accelerators.

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 1         (3)  The articles of incorporation of the institute

 2  must be approved in a written agreement with Enterprise

 3  Florida, Inc. The agreement and the articles of incorporation

 4  shall:

 5         (a)  Provide that the corporation shall provide equal

 6  employment opportunities for all persons regardless of race,

 7  color, religion, gender, national origin, age, handicap, or

 8  marital status;

 9         (b)  Provide that the corporation is subject to the

10  public records and meeting requirements of s. 24, Art. I of

11  the State Constitution;

12         (c)  Provide that all officers, directors, and

13  employees of the corporation shall be governed by the code of

14  ethics for public officers and employees as set forth in part

15  III of chapter 112;

16         (d)  Provide that members of the board of directors of

17  the corporation are responsible for the prudent use of all

18  public and private funds and that they will ensure that the

19  use of funds is in accordance with all applicable laws,

20  bylaws, and contractual requirements; and

21         (e)  Provide that the fiscal year of the corporation is

22  from July 1 to June 30.

23         (4)  Members of the board shall serve without

24  compensation, but members, the president of the board, and

25  other board employees may be reimbursed for all reasonable,

26  necessary, and actual expenses as determined and approved by

27  the board pursuant to s. 112.061.

28         (5)  The affairs of the institute shall be managed by a

29  board of directors. Each director shall have only one vote.

30  The chair of the board of directors shall be selected by a

31  majority vote of the directors, a quorum being present. The

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 1  board of directors shall consist of the following five

 2  members:

 3         (a)  The chair of Enterprise Florida, Inc., or the

 4  chair's designee.

 5         (b)  The president of the university where the

 6  institute is located or the president's designee unless

 7  multiple universities jointly sponsor the institute, in which

 8  case the presidents of the sponsoring universities shall agree

 9  upon a designee.

10         (c)  Three directors appointed by the Governor to

11  3-year staggered terms, to which directors may be reappointed.

12         (6)  The board shall provide a copy of the institute's

13  annual report to the Governor, the President of the Senate,

14  the Speaker of the House of Representatives, Enterprise

15  Florida, Inc., and the president of the university at which

16  the institute is located. The report shall include, at a

17  minimum:

18         (a)  Any assistance and activities provided to assist

19  publicly supported universities, colleges, research

20  institutes, and other publicly supported organizations in the

21  state, by institute.

22         (b)  A description of the benefits to this state

23  resulting from the institute, including the number of

24  businesses created, associated industries started, the number

25  of jobs created, and the growth of related projects.

26         (c)  Independently audited financial statements,

27  including statements that show receipts and expenditures

28  during the preceding fiscal year for personnel,

29  administration, and operational costs of the institute.

30         (7)  Enterprise Florida, Inc., the president and the

31  board of trustees of the university where the institute is

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 1  located, the Auditor General, and the Office of Program Policy

 2  Analysis and Government Accountability may require and receive

 3  from the institute or its independent auditor any detail or

 4  supplemental data relative to the operation of the

 5  corporation.

 6         (8)  Enterprise Florida, Inc., shall issue a request

 7  for proposals to public universities in Florida requesting

 8  proposals to fulfill the purposes of the institute as

 9  described in this section and provide for its physical

10  location in a major metropolitan area in the southern part of

11  the state having extensive commercial air service to

12  facilitate access by Venture Capital providers. Enterprise

13  Florida, Inc., shall review the proposals in a committee

14  appointed by its board of directors which shall make a

15  recommendation for final selection. Final approval of the

16  selected proposal must be by the board of directors of

17  Enterprise Florida, Inc., at one of its duly noticed meetings.

18         (a)  To be eligible for assistance, the company or

19  organization attempting to commercialize its product must be

20  accepted by the institute before receiving the institute's

21  assistance.

22         (b)  The institute shall receive recommendations from

23  any publicly supported organization on behalf of any company

24  that is commercializing the research, technology, or patents

25  from a qualifying publicly supported organization and which

26  should be accepted into the institute.

27         (c)  The institute shall review the business plans and

28  technology information of each such recommended company. If

29  accepted, the institute shall mentor the company, develop

30  marketing information on the company, and use its resources to

31  attract capital investment into the company, as well as bring

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 1  other resources to the company which may foster its effective

 2  management, growth, capitalization, technology protection,

 3  marketing or business success.

 4         (9)  The institute shall:

 5         (a)  Maintain a centralized location to showcase

 6  companies and their technologies and products;

 7         (b)  Develop an efficient process to inventory and

 8  publicize companies and products that have been accepted by

 9  the institute for commercialization;

10         (c)  Routinely communicate with private investors and

11  venture capital organizations regarding the investment

12  opportunities in its showcased companies;

13         (d)  Facilitate meetings between prospective investors

14  and eligible organizations in the institute;

15         (e)  Hire full-time staff who understand relevant

16  technologies needed to market companies to the angel investors

17  and venture capital investment community;

18         (f)  Operate within an allocated annual budget of $1

19  million or less; and

20         (g)  Develop cooperative relationships with publicly

21  supported organizations all of which work together to provide

22  resources or special knowledge that is likely to be helpful to

23  institute companies.

24         (10)  The institute may not develop or accrue any

25  ownership, royalty, patent, or other such rights over or

26  interest in companies or products in the institute and shall

27  maintain the secrecy of proprietary information.

28         (11)  The institute may not charge for services

29  rendered to state universities and affiliated organizations,

30  community colleges, or state agencies.

31  

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 1         Section 3.  Sections 288.9621, 288.9622, 288.9623, and

 2  288.9624, Florida Statutes, are created to read:

 3         288.9621  Short title.--Sections 288.9621-288.9624 may

 4  be cited as the "Florida Capital Formation Act."

 5         288.9622  Findings and intent.--

 6         (1)  The Legislature finds and declares that there is a

 7  need to increase the availability of seed capital and early

 8  stage venture equity capital for emerging companies in the

 9  state, including, without limitation, enterprises in life

10  sciences, information technology, advanced manufacturing

11  processes, aviation and aerospace, and homeland security and

12  defense, as well as other strategic technologies.

13         (2)  It is the intent of the Legislature that this act

14  serve to mobilize private investment in a broad variety of

15  venture capital partnerships in diversified industries and

16  geographies; retain private-sector investment criteria focused

17  on rate of return; use the services of highly qualified

18  managers in the venture capital industry regardless of

19  location; facilitate the organization of the Florida

20  Opportunity Fund as a fund-of-funds investor in seed and early

21  stage venture capital and angel funds; and precipitate capital

22  investment and extensions of credit to and in the Florida

23  Opportunity Fund.

24         (3)  It is the intent of the Legislature to mobilize

25  venture equity capital for investment in such a manner as to

26  result in a significant potential to create new businesses and

27  jobs in this state which are based on high growth potential

28  technologies, products, or services and which will further

29  diversify the economy of this state.

30  

31  

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 1         (4)  It is the further intent of the Legislature that

 2  an institute be created to mentor, market, and attract capital

 3  to such commercialization ventures throughout the state.

 4         288.9623  Definitions.--As used in ss.

 5  288.9621-288.9624, the term:

 6         (1)  "Board" means the board of directors of the

 7  Florida Opportunity Fund.

 8         (2)  "Fund" means the Florida Opportunity Fund.

 9         288.9624  Florida Opportunity Fund; creation; duties.--

10         (1)(a)  Enterprise Florida, Inc., shall facilitate the

11  creation of the Florida Opportunity Fund, a private,

12  not-for-profit corporation organized and operated under

13  chapter 617. Enterprise Florida, Inc., shall be the fund's

14  sole shareholder or member. The fund is not a public

15  corporation or instrumentality of the state. The fund shall

16  manage its business affairs and conduct business consistently

17  with its organizational documents and the purposes set forth

18  in this section. Notwithstanding the powers granted under

19  chapter 617, the corporation may not amend, modify, or repeal

20  a bylaw or article of incorporation without the express

21  written consent of Enterprise Florida, Inc.

22         (b)  The vice chair of Enterprise Florida, Inc., shall

23  select from among its sitting board of directors a five-person

24  appointment committee. The appointment committee shall select

25  five initial members of a board of directors for the fund.

26         (c)  The persons selected to the initial board of

27  directors by the appointment committee shall include persons

28  who have expertise in the area of the selection and

29  supervision of early stage investment managers or in the

30  fiduciary management of investment funds and other areas of

31  

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 1  expertise as considered appropriate by the appointment

 2  committee.

 3         (d)  After selection of the initial board of directors,

 4  vacancies on the board shall be filled by vote of the board of

 5  directors of Enterprise Florida, Inc., and board members shall

 6  serve terms as provided in the fund's organizational

 7  documents.

 8         (e)  Members of the board are subject to any

 9  restrictions on conflicts of interest specified in the

10  organizational documents and may not have an interest in any

11  venture capital investment selected by the fund under ss.

12  288.9621-288.9624.

13         (f)  Members of the board shall serve without

14  compensation, but members, the president of the board, and

15  other board employees may be reimbursed for all reasonable,

16  necessary, and actual expenses as determined and approved by

17  the board pursuant to s. 112.061.

18         (g)  The fund shall have all powers granted under its

19  organizational documents and shall indemnify members to the

20  broadest extent permissible under the laws of this state.

21         (2)  Upon organization, the board shall conduct a

22  national solicitation for investment plan proposals from

23  qualified venture capital investment managers for the raising

24  and investing of capital by the Florida Opportunity Fund. Any

25  proposed investment plan must address the applicant's level of

26  experience, quality of management, investment philosophy and

27  process, provability of success in fundraising, prior

28  investment fund results, and plan for achieving the purposes

29  of this act. The board shall select only venture capital

30  investment managers that have demonstrated expertise in the

31  management of and investment in companies.

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 1         (3)  The board is responsible for negotiating the terms

 2  of a contract with the Florida Opportunity Fund investment

 3  manager; executing the contract with the selected venture

 4  capital investment fund manager on behalf of the Florida

 5  Opportunity Fund; managing the business affairs of the Florida

 6  Opportunity Fund, such as accounting, audit, insurance, and

 7  related requirements; soliciting and negotiating the terms of,

 8  contracting for, and receiving investment capital and loan

 9  proceeds with the assistance of the investment manager;

10  receiving investment returns; paying investors and debtors;

11  and reinvesting the investment returns in the fund in order to

12  provide additional venture capital investments designed to

13  result in a significant potential to create new businesses and

14  jobs in this state and further diversify the economy of this

15  state.

16         (4)  For the purpose of mobilizing investment in a

17  broad variety of Florida-based, new technology companies and

18  generating a return sufficient to continue reinvestment, the

19  fund shall:

20         (a)  Invest directly only in seed and early stage

21  venture capital funds that have experienced managers or

22  management teams with demonstrated experience, expertise, and

23  a successful history in the investment of venture capital

24  funds, focusing on opportunities in this state. The fund may

25  not make direct investments in individual businesses. While

26  not precluded from investing in venture capital funds that

27  have investments outside this state, the fund must require a

28  venture capital fund to show a record of successful investment

29  in this state, to be based in this state, or to have an office

30  in this state staffed with a full-time, professional venture

31  investment executive in order to be eligible for investment.

                                  17

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    Florida Senate - 2007      CS for CS for CS for CS for SB 2420
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 1         (b)  Negotiate for investment capital or loan proceeds

 2  from private, institutional, or banking sources.

 3         (c)  Negotiate any and all terms and conditions for its

 4  investments.

 5         (d)  Invest only in funds that have raised capital from

 6  other sources so that the amount invested in an entity in this

 7  state is at least twice the amount invested by the fund.

 8  Investments must be made in Florida-based companies,

 9  including, without limitation, enterprises in life sciences,

10  information technology, advanced manufacturing processes,

11  aviation and aerospace, and homeland security and defense, as

12  well as other strategic technologies.

13         (5)  By December 1 of each year, the board shall issue

14  an annual report concerning the activities conducted by the

15  fund to the Governor, the President of the Senate, and the

16  Speaker of the House of Representatives. The annual report, at

17  a minimum, must include:

18         (a)  An accounting of the amount of investments

19  disbursed by the fund and the progress of the fund.

20         (b)  A description of the benefits to this state

21  resulting from the fund, including the number of businesses

22  created, associated industries started, the number of jobs

23  created, and the growth of related research projects.

24         (c)  Independently audited financial statements,

25  including statements that show receipts and expenditures

26  during the preceding fiscal year for personnel,

27  administration, and operational costs of the fund.

28         Section 4.  The nonrecurring sum of $30 million is

29  appropriated from the General Revenue Fund to Enterprise

30  Florida, Inc., for the Florida Opportunity Fund for the

31  2007-2008 fiscal year. Of these funds, $500,000 shall be for

                                  18

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 1  the purpose of initiating activities necessary to implement

 2  the fund's responsibilities under this act, and $29.5 million

 3  is provided for the purpose of making investments under s.

 4  288.9624, Florida Statutes.

 5         Section 5.  The nonrecurring sum of $10 million is

 6  appropriated to the Board of Governors of the State University

 7  System from the General Revenue Fund for the State University

 8  Research Commercialization Grant Program created by this act.

 9  Funds must be disbursed by the Board of Governors pursuant to

10  grant agreements and contracts by the Florida Technology,

11  Research, and Scholarship Board.

12         Section 6.  The nonrecurring sum of $100,000 is

13  appropriated to Enterprise Florida, Inc., and the nonrecurring

14  sum of $900,000 is appropriated from the General Revenue Fund

15  to the Institute for the Commercialization of Public Research

16  for the purpose of initiating activities necessary to

17  implement its responsibilities under this act for the

18  2007-2008 fiscal year.

19         Section 7.  Prior to the 2012 Regular Session of the

20  Legislature, the Office of Program Policy Analysis and

21  Government Accountability shall conduct an interim review and

22  evaluation of the effectiveness and viability of the Capital

23  Formation Act. The office shall specifically evaluate the

24  total capital investment in the state, private-sector

25  investment, rate-of-return, creation of new business and jobs,

26  debt incurred, and industries impacted. The office shall also

27  recommend outcome measures for further evaluation of the

28  program. The office shall submit a report of its findings and

29  recommendations to the Governor, the President of the Senate,

30  and the Speaker of the House of Representatives no later than

31  January 1, 2012.

                                  19

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 1         Section 8.  This act shall take effect July 1, 2007.

 2  

 3          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 4                    CS/CS/CS Senate Bill 2420

 5                                 

 6  The Committee Substitute made the following changes to
    CS/CS/CS/SB 2420:
 7  
    --   Creates the University Research Commercialization
 8       Assistance Grant Program to finance early-stage,
         pre-marketing activities geared to commercializing
 9       university research products. The program will be
         administered by the Florida Technology, Research, and
10       Scholarship Board within the State University System.

11  --   Appropriates $10 million in nonrecurring general revenue
         as University Research Commercialization Assistance
12       grants.

13  --   Creates the Capital Formation Act and the Florida
         Opportunity Fund, which will invest in a "fund-of-funds"
14       approach in Florida companies with the potential for
         high-tech, high-wage jobs.
15  
    --   Appropriates $29.5 million in nonrecurring general
16       revenue to make investments, and $500,000 to pay start-up
         costs.
17  
    --   Deletes all references to the SURE Venture Capital Fund
18       and its appropriation.

19  --   Directs the Office of Program Policy and Governmental
         Accountability prior to the 2012 legislative session to
20       conduct an interim review and evaluation of the Capital
         Formation Act, focusing on the act's performance, its
21       creation of businesses and jobs, and investments
         attracted.
22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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