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A bill to be entitled

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An act relating to The Scripps Research Institute;

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amending s. 288.955, F.S.; revising definitions; requiring

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the Scripps Florida Funding Corporation, along with the

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Office of Tourism, Trade, and Economic Development and

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Enterprise Florida, Inc., to review the performance and

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progress of grant recipients of the Innovation Incentive

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Program; revising membership requirements of the board of

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directors of the Scripps Florida Funding Corporation;

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authorizing the corporation to include on the same meeting

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agenda matters related to The Scripps Research Institute

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and the Innovation Incentive Program; deleting obsolete

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provisions; revising the duties of the corporation;

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revising the contract requirements between the corporation

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and the grant recipients; requiring the corporation to

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submit to the Governor and the Legislature a report

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related to the activities of the Innovation Incentive

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Program; providing requirements for the report; amending

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s. 288.1089, F.S.; providing definitions; revising

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application requirements for innovation incentive awards;

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revising evaluation and recommendation requirements for

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innovative incentive awards; requiring the Legislative

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Budget Commission to review and approve an innovation

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incentive award before the Executive Office of the

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Governor releases the funds; revising conditions in which

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funds are appropriated and released for the Innovation

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Incentive Program; revising agreement requirements for

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payment of incentives; requiring award recipients to

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comply with certain business ethics developed by

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Enterprise Florida, Inc.; providing an effective date.

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

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34

     Section 1.  Section 288.955, Florida Statutes, is amended to

35

read:

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     288.955  Scripps Florida Funding Corporation.--

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     (1)  DEFINITIONS.--As used in this section, the term:

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     (a) "Agreement" means an agreement between the Office of

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Tourism, Trade, and Economic Development and recipients of

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Innovation Incentive Program grants pursuant to s. 288.1089.

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     (b)(a) "Contract" means the contract executed between the

42

corporation and the grantee under this section.

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     (c)(b) "Corporation" means the Scripps Florida Funding

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Corporation created under this section.

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     (d)(c) "Grantee" means The Scripps Research Institute, a

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not-for-profit public benefit corporation, or a division,

47

subsidiary, affiliate, or entity formed by The Scripps Research

48

Institute to establish a state-of-the-art biomedical research

49

institution and campus in this state.

50

     (2)  CREATION.--

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     (a)  There is created a not-for-profit corporation known as

52

the Scripps Florida Funding Corporation, which shall be

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registered, incorporated, organized, and operated under chapter

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617.

55

     (b)  The corporation is not a unit or entity of state

56

government. However, the corporation is subject to the provisions

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of s. 24, Art. I of the State Constitution and chapter 119,

58

relating to public meetings and records, and the provisions of

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chapter 286 relating to public meetings and records.

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     (c)  The corporation must establish at least one corporate

61

office in this state and appoint a registered agent.

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     (d)  The corporation shall hire or contract for all staff

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necessary to the proper execution of its powers and duties within

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the funds appropriated to implement this section and shall

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require that all officers, directors, and employees of the

66

corporation comply with the code of ethics for public officers

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and employees under part III of chapter 112. In no case may the

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corporation expend more than $300,000 in the first year and

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$200,000 per year thereafter for staffing and necessary

70

administrative expenditures, including, but not limited to,

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travel and per diem and audit expenditures, using funds

72

appropriated to implement this section.

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     (e)  The Office of Tourism, Trade, and Economic Development

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shall provide administrative support to the corporation as

75

requested by the corporation. In the event of the dissolution of

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the corporation, the office shall be the corporation's successor

77

in interest and shall assume all rights, duties, and obligations

78

of the corporation under any contract to which the corporation is

79

then a party and under law.

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     (3) PURPOSES PURPOSE.--

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     (a) The corporation shall be organized to receive, hold,

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invest, administer, and disburse funds appropriated by the

83

Legislature for the establishment and operation of a state-of-

84

the-art biomedical research institution and campus in this state

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by The Scripps Research Institute. The corporation shall

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safeguard the state's commitment of financial support by ensuring

87

that, as a condition for the receipt of these funds, the grantee

88

meets its contractual obligations. In this manner, the

89

corporation shall facilitate and oversee the state goal and

90

public purpose of providing financial support for the institution

91

and campus in order to expand the amount and prominence of

92

biomedical research conducted in this state, provide an

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inducement for high-technology businesses to locate in this

94

state, create educational opportunities through access to and

95

partnerships with the institution, and promote improved health

96

care through the scientific outcomes of the institution.

97

     (b) The corporation also shall serve in an oversight

98

capacity for the Innovation Incentive Program created in s.

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288.1089. In that capacity, the corporation shall enter into a

100

partnership with the Office of Tourism, Trade, and Economic

101

Development and Enterprise Florida, Inc., in reviewing the

102

performance and progress of grant recipients of the Innovation

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Incentive Program.

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     (4)  BOARD; MEMBERSHIP.--The corporation shall be governed

105

by a board of directors.

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     (a)  The board of directors shall consist of nine voting

107

members, of whom the Governor shall appoint three, the President

108

of the Senate shall appoint three, and the Speaker of the House

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of Representatives shall appoint three. The director of the

110

Office of Tourism, Trade, and Economic Development or the

111

director's designee shall serve as an ex-officio, nonvoting

112

member of the board of directors.

113

     (b)  Each member of the board of directors shall serve for a

114

term of 4 years, and except that initially the Governor, the

115

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

116

Representatives each shall appoint one member for a term of 1

117

year, one member for a term of 2 years, and one member for a term

118

of 4 years to achieve staggered terms among the members of the

119

board. a member is not eligible for reappointment to the board,

120

except, however, that a member appointed to an initial term of 1

121

year or 2 years may be reappointed for an additional term of 4

122

years, and a person appointed to fill a vacancy with 2 years or

123

less remaining on the term may be reappointed for an additional

124

term of 4 years. The Governor, the President of the Senate, and

125

the Speaker of the House of Representatives shall make their

126

initial appointments to the board by November 15, 2003.

127

     (c)  The Governor, the President of the Senate, or the

128

Speaker of the House of Representatives, respectively, shall fill

129

a vacancy on the board of directors, according to who appointed

130

the member whose vacancy is to be filled or whose term has

131

expired. A vacancy that occurs before the scheduled expiration of

132

the term of the member shall be filled for the remainder of the

133

unexpired term.

134

     (d)  Each member of the board of directors who is not

135

otherwise required to file financial disclosure under s. 8, Art.

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II of the State Constitution or s. 112.3144 shall file disclosure

137

of financial interests under s. 112.3145.

138

     (e)  A person may not be appointed to the board of directors

139

if he or she has had any direct interest in any contract,

140

franchise, privilege, or other benefit granted by The Scripps

141

Research Institute, or any of its affiliate organizations, or

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with any grant recipients of the Innovation Incentive Program

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within 5 years before appointment. A person appointed to the

144

board of directors must agree to refrain from having any direct

145

interest in any contract, franchise, privilege, or other benefit

146

granted by The Scripps Research Institute, or any of its

147

affiliate organizations, or with any grant recipients of the

148

Innovation Incentive Program during the term of his or her

149

appointment and for 5 years after the termination of such

150

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

151

as provided in s. 775.083 or s. 775.084, for a person to accept

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appointment to the board of directors in violation of this

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paragraph or to accept a direct interest in any contract,

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franchise, privilege, or other benefit granted by the institution

155

or affiliate within 5 years after the termination of his or her

156

service on the board.

157

     (f)  Each member of the board of directors shall serve

158

without compensation, but shall receive travel and per diem

159

expenses as provided in s. 112.061 while in the performance of

160

his or her duties.

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     (g)  Each member of the board of directors is accountable

162

for the proper performance of the duties of office, and each

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member owes a fiduciary duty to the people of the state to ensure

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that funds provided in furtherance of this section are disbursed

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and used as prescribed by law and contract. The Governor, the

166

President of the Senate, or the Speaker of the House of

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Representatives, according to which officer appointed the member,

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may remove a member for malfeasance, misfeasance, neglect of

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duty, incompetence, permanent inability to perform official

170

duties, unexcused absence from three consecutive meetings of the

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board, arrest or indictment for a crime that is a felony or a

172

misdemeanor involving theft or a crime of dishonesty, or pleading

173

nolo contendere to, or being found guilty of, any crime.

174

     (5)  ORGANIZATION; MEETINGS.--

175

     (a)1.  The board of directors shall annually elect a

176

chairperson and a vice chairperson from among the board's

177

members. The members may, by a vote of five of the nine board

178

members, remove a member from the position of chairperson or vice

179

chairperson prior to the expiration of his or her term as

180

chairperson or vice chairperson. His or her successor shall be

181

elected to serve for the balance of the removed chairperson's or

182

vice chairperson's term.

183

     2.  The chairperson is responsible to ensure that records

184

are kept of the proceedings of the board of directors and is the

185

custodian of all books, documents, and papers filed with the

186

board; the minutes of meetings of the board; and the official

187

seal of the corporation.

188

     (b)1.  The board of directors shall meet upon the call of

189

the chairperson or at the request of a majority of the members,

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but no less than three times per calendar year.

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     2.  A majority of the voting members of the board of

192

directors constitutes a quorum. Except as otherwise provided in

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this section, the board may take official action by a majority

194

vote of the members present at any meeting at which a quorum is

195

present. Members may not vote by proxy.

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     3.  A member of the board may participate in a meeting of

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the board by telephone or videoconference through which each

198

member may hear every other member.

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     (c) The corporation may include on the same meeting agenda

200

matters related to The Scripps Research Institute and the

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Innovation Incentive Program.

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     (6)  POWERS AND DUTIES.--

203

     (a) The corporation is organized to receive, hold, invest,

204

administer, and disburse funds appropriated by the Legislature in

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support of The Scripps Research Institute this section and to

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disburse any income generated from the investment of these funds

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consistent with the purpose and provisions of this section. In

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addition to the powers and duties prescribed in chapter 617 and

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the articles and bylaws adopted under that chapter, the

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corporation:

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     1.(a) May make and enter into contracts and assume any

212

other functions that are necessary to carry out the provisions of

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this section related to The Scripps Research Institute.

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     2.(b) May enter into leases and contracts for the purchase

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of real property and hold notes, mortgages, guarantees, or

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security agreements to secure the performance of obligations of

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the grantee under the contract.

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     3.(c) May perform all acts and things necessary or

219

convenient to carry out the powers expressly granted in this

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section and in the a contract entered into between the

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corporation and the grantee.

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     4.(d) May make expenditures, from funds provided by this

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state, including any necessary administrative expenditures

224

consistent with its powers.

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     (e) May indemnify, and purchase and maintain insurance on

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behalf of, directors, officers, and employees of the corporation

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against any personal liability or accountability.

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     5.(f) Shall disburse funds pursuant to the provisions of

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this section and a contract entered into between the corporation

230

and the grantee.

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     6.(g) Shall receive and review reports and financial

232

documentation provided by the grantee to ensure compliance with

233

the provisions of this section and provisions of the contract.

234

     7.(h) Shall prepare an annual report as prescribed in

235

subsection (14).

236

     (b) The corporation also is directed to:

237

     1. Review the business plans, quarterly reports, annual

238

reports, and audit reports of entities that have received a grant

239

from the Innovation Incentive Program pursuant to s. 288.1089.

240

     2. Invite all Innovation Incentive Program grant recipients

241

to appear at its meetings to present progress reports on their

242

activities.

243

     3. Prepare an annual report as prescribed in subsection

244

(15).

245

     (c) The corporation may indemnify, purchase, and maintain

246

insurance on behalf of directors, officers, and employees of the

247

corporation against any personal liability or accountability.

248

     (d) The corporation may otherwise perform all acts and

249

things necessary or convenient to carry out the powers expressly

250

granted in this section.

251

     (7)  INVESTMENT OF FUNDS.--The corporation must enter into

252

an agreement with the State Board of Administration under which

253

funds received by the corporation from the Office of Tourism,

254

Trade, and Economic Development which are not disbursed to the

255

grantee shall be invested by the State Board of Administration on

256

behalf of the corporation. Funds shall be invested in suitable

257

instruments authorized under s. 215.47 and specified in

258

investment guidelines established and agreed to by the State

259

Board of Administration and the corporation.

260

     (8)  CONTRACT.--

261

     (a) The 20-year contract negotiated and executed by the

262

corporation with the grantee By January 30, 2004, the corporation

263

shall negotiate and execute a contract with the grantee for a

264

term of 20 years. Such contract shall govern the disbursement and

265

use of funds under this section. The board may, by a simple

266

majority vote, authorize one 45-day extension of this deadline.

267

The corporation may not execute the contract unless the contract

268

is approved by the affirmative vote of at least seven of the nine

269

members of the board of directors. At least 14 days before

270

execution of the contract, The Scripps Research Institute must

271

submit to the board, the Governor, the President of the Senate,

272

and the Speaker of the House of Representatives an organizational

273

plan, in a form and manner prescribed by the board, for the

274

establishment of a state-of-the-art biomedical research

275

institution and campus in this state, and the board must submit a

276

copy of the proposed contract to the Governor, the President of

277

the Senate, and the Speaker of the House of Representatives.

278

     (b) The contract, at a minimum, must contain provisions:

279

     1.  Specifying the procedures and schedules that govern the

280

disbursement of funds under this section and specifying the

281

conditions or deliverables that the grantee must satisfy before

282

the release of each disbursement.

283

     2.  Requiring the grantee to submit to the corporation a

284

business plan in a form and manner prescribed by the corporation.

285

     3.  Prohibiting The Scripps Research Institute or the

286

grantee from establishing other biomedical science or research

287

facilities in any state other than this state or California for a

288

period of 12 years from the commencement of the contract. Nothing

289

in this subparagraph shall prohibit the grantee from establishing

290

or engaging in normal collaborative activities with other

291

organizations.

292

     4.  Governing the ownership of or security interests in real

293

property and personal property, including, but not limited to,

294

research equipment, obtained through the financial support of

295

state or local government, including a provision that in the

296

event of a breach of the contract or in the event the grantee

297

ceases operations in this state, such property purchased with

298

state funds shall revert to the state and such property purchased

299

with local funds shall revert to the local governing authority.

300

     5.  Requiring the grantee to be an equal opportunity

301

employer.

302

     6.  Requiring the grantee to maintain a policy of awarding

303

preference in employment to residents of this state, as defined

304

by law, except for professional scientific staff positions

305

requiring a doctoral degree, postdoctoral training positions, and

306

graduate student positions.

307

     7.  Requiring the grantee to maintain a policy of making

308

purchases from vendors in this state, to the extent it is cost-

309

effective and scientifically sound.

310

     8.  Requiring the grantee to use the Internet-based job-

311

listing system of the Agency for Workforce Innovation in

312

advertising employment opportunities.

313

     9.  Requiring the grantee to establish accredited science

314

degree programs.

315

     10.  Requiring the grantee to establish internship programs

316

to create learning opportunities for educators and secondary,

317

postsecondary, graduate, and doctoral students.

318

     11.  Requiring the grantee to submit data to the corporation

319

on the activities and performance during each fiscal year and to

320

provide to the corporation an annual accounting of the

321

expenditure of funds disbursed under this section.

322

     12.  Establishing that the corporation shall review the

323

activities of the grantee to assess the grantee's financial and

324

operational compliance with the provisions of the contract and

325

with relevant provisions of law.

326

     13.  Authorizing the grantee, when feasible, to use

327

information submitted by it to the Federal Government or to other

328

organizations awarding research grants to the grantee to help

329

meet reporting requirements imposed under this section or the

330

contract, if the information satisfies the reporting standards of

331

this section and the contract.

332

     14. Unless amended pursuant to the force majeure provisions

333

in subsection (18), requiring the grantee during the first 7

334

years of the contract to create 545 positions and to acquire

335

associated research equipment for the grantee's facility in this

336

state, and pay for related maintenance of the equipment, in a

337

total amount of not less than $45 million.

338

     15.  Requiring the grantee to progress in the creation of

339

the total number of jobs prescribed in subparagraph 14. on the

340

following schedule: At least 38 positions in the 1st year, 168

341

positions in the 2nd year, 280 positions in the 3rd year, 367

342

positions in the 4th year, 436 positions in the 5th year, 500

343

positions in the 6th year, and 545 positions in the 7th year. The

344

corporation's board of directors may allow the grantee to deviate

345

downward from such employee levels by 25 percent in any year, to

346

allow the grantee flexibility in achieving the objectives set

347

forth in the business plan provided to the corporation; however,

348

the grantee must have no fewer than 545 positions by the end of

349

the 7th year.

350

     16.  Requiring the grantee to allow the corporation to

351

retain an independent certified public accountant licensed in

352

this state pursuant to chapter 473 to inspect the records of the

353

grantee in order to audit the expenditure of funds disbursed to

354

the grantee. The independent certified public accountant shall

355

not disclose any confidential or proprietary scientific

356

information of the grantee.

357

     17.  Requiring the grantee to purchase liability insurance

358

and governing the coverage level of such insurance.

359

     (b)(c) An amendment to the contract is not effective unless

360

it is approved by the affirmative vote of at least seven of the

361

nine members of the board of directors.

362

     (9) PERFORMANCE EXPECTATIONS FOR THE SCRIPPS RESEARCH

363

INSTITUTE.--In addition to the provisions prescribed in

364

subsection (8), the contract between the corporation and the

365

grantee shall include a provision that the grantee, in

366

cooperation with the Office of Tourism, Trade, and Economic

367

Development, shall report to the corporation on an annual basis

368

certain performance expectations that reflect the aspirations of

369

the Governor and the Legislature for the benefits accruing to

370

this state as a result of the funds appropriated pursuant to this

371

section. These shall include, but are not limited to, performance

372

expectations addressing:

373

     (a)  The number and dollar value of research grants obtained

374

from the Federal Government or sources other than this state.

375

     (b)  The percentage of total research dollars received by

376

The Scripps Research Institute from sources other than this state

377

which is used to conduct research activities by the grantee in

378

this state.

379

     (c)  The number or value of patents obtained by the grantee.

380

     (d)  The number or value of licensing agreements executed by

381

the grantee.

382

     (e)  The extent to which research conducted by the grantee

383

results in commercial applications.

384

     (f)  The number of collaborative agreements reached and

385

maintained with colleges and universities in this state and with

386

research institutions in this state, including agreements that

387

foster participation in research opportunities by public and

388

private colleges and universities and research institutions in

389

this state with significant minority populations, including

390

historically black colleges and universities.

391

     (g)  The number of collaborative partnerships established

392

and maintained with businesses in this state.

393

     (h)  The total amount of funding received by the grantee

394

from sources other than the State of Florida.

395

     (i)  The number or value of spin-off businesses created in

396

this state as a result of commercialization of the research of

397

the grantee.

398

     (j)  The number or value of businesses recruited to this

399

state by the grantee.

400

     (k)  The establishment and implementation of policies to

401

promote supplier diversity using the guidelines developed by the

402

Office of Supplier Diversity under s. 287.09451 and to comply

403

with the ordinances, including any small business ordinances,

404

enacted by the county and which are applicable to the biomedical

405

research institution and campus located in this state.

406

     (l)  The designation by the grantee of a representative to

407

coordinate with the Office of Supplier Diversity.

408

     (m)  The establishment and implementation of a program to

409

conduct workforce recruitment activities at public and private

410

colleges and universities and community colleges in this state

411

which request the participation of the grantee.

412

413

The contract shall require the grantee to provide information to

414

the corporation on the progress in meeting these performance

415

expectations on an annual basis. It is the intent of the

416

Legislature that, in fulfilling its obligation to work with

417

Florida's public and private colleges and universities, The

418

Scripps Research Institute's Florida facility work with such

419

colleges and universities regardless of size.

420

     (10)  DISBURSEMENT CONDITIONS.--In addition to the

421

provisions prescribed in subsection (8), the contract between the

422

corporation and the grantee shall include disbursement conditions

423

that must be satisfied by the grantee as a condition for the

424

continued disbursement of funds under this section. These

425

disbursement conditions shall be negotiated between the

426

corporation and the grantee and shall not be designed to impede

427

the ability of the grantee to attain full operational status. The

428

disbursement conditions may be appropriately varied as to

429

timeframes, numbers, values, and percentages. The disbursement

430

conditions shall include, but are not limited to, the following

431

areas:

432

     (a)  Demonstrate creation of jobs and report on the average

433

salaries paid.

434

     (b)  Beginning 18 months after the grantee's occupancy of

435

its permanent facility, the grantee shall annually obtain

436

$100,000 of nonstate funding for each full-time equivalent

437

tenured-track faculty member employed at the grantee's Florida

438

facility.

439

     (c)  No later than 3 years after the grantee's occupancy of

440

its permanent facility, the grantee shall apply to the relevant

441

accrediting agency for accreditation of its Florida graduate

442

program.

443

     (d)  The grantee shall purchase equipment for its Florida

444

facility as scheduled in its contract with the corporation.

445

     (e)  No later than 18 months after occupying its permanent

446

facility, the grantee shall establish a program for qualified

447

graduate students from Florida universities permitting them

448

access to the facility for doctoral, thesis-related research.

449

     (f)  No later than 18 months after occupancy of the

450

permanent facility, the grantee shall establish a summer

451

internship for high school students.

452

     (g)  No later than 3 years after occupancy of the permanent

453

facility, the grantee shall establish a research program for

454

middle and high school teachers.

455

     (h)  No later than 18 months after occupancy of the

456

permanent facility, the grantee shall establish a program for

457

adjunct professors.

458

     (i)  No later than 6 months after commissioning its high

459

throughput technology, the grantee shall establish a program to

460

allow open access for qualified science projects.

461

     (j) Beginning June 2004, The grantee shall collaborate

462

commence collaborative efforts with Florida public and private

463

colleges and universities, and shall continue cooperative

464

collaboration through the term of the agreement.

465

     (k)  Beginning 18 months after the grantee occupies the

466

permanent facility, the grantee shall establish an annual seminar

467

series featuring a review of the science work done by the grantee

468

and its collaborators at the Florida facility.

469

     (l) Beginning June 2004, The grantee shall collaborate

470

commence collaboration efforts with the Office of Tourism, Trade,

471

and Economic Development by complying with reasonable requests

472

for cooperation in economic development efforts in the

473

biomed/biotech industry. No later than July 2004, The grantee

474

shall also designate a person who shall be charged with assisting

475

in these collaborative efforts.

476

     (11) DISBURSEMENTS TO THE SCRIPPS RESEARCH INSTUTUTE.--

477

     (a)  The corporation shall disburse funds to the grantee

478

over a period of 7 calendar years starting in the calendar year

479

beginning January 1, 2004, under the terms and conditions of the

480

contract. The corporation shall complete disbursement of the

481

total amount of funds payable to the grantee under the contract

482

no later than December 31, 2010, unless the grantee fails to

483

satisfy the terms and conditions of the contract. Any funds of

484

the corporation that are not disbursed by December 31, 2010,

485

shall be paid to the Biomedical Research Trust Fund of the

486

Department of Health.

487

     (b)  The contract shall provide for a reduction or

488

elimination of funding in any year if:

489

     1.  The grantee is no longer operating in this state;

490

     2.  The grantee has failed to commit in writing to maintain

491

operations in the state for the succeeding year; or

492

     3.  The grantee commits a material default or breach of the

493

contract, as defined and governed by the contract. Determination

494

of material default or breach of contract shall require the

495

affirmative vote of at least seven of the nine members of the

496

board.

497

     (c)  Each disbursement by the corporation to the grantee

498

under this section is conditioned upon the affirmative approval

499

of at least five of the nine members of the board of directors

500

and upon demonstration by the grantee that it has met the

501

particular contractual deliverables that are the basis for that

502

disbursement.

503

     (12)  USE OF FUNDS.--

504

     (a)  Funds appropriated in furtherance of this section may

505

not be disbursed or expended for activities that do not

506

principally benefit or that are not directly related to the

507

establishment or operation of the grantee in this state, except

508

upon approval of the affirmative vote of at least seven of the

509

nine members of the board of directors.

510

     (b) No Funds appropriated in furtherance of this section

511

may not be used for the purpose of lobbying any branch or agency

512

of state government or any political subdivision of the state.

513

     (c)  The grantee must provide for separate accounts for any

514

funds appropriated in furtherance of this section and separate

515

books and records relating to The Scripps Research Institute's

516

Florida operation.

517

     (13)  REINVESTMENT.--

518

     (a)  The grantee shall reinvest 15 percent of the net

519

royalty revenues, including the revenues from the sale of stock,

520

received by The Scripps Research Institute from the licensing or

521

transfer of inventions, methods, processes, and other patentable

522

discoveries conceived or reduced to practice using the grantee's

523

Florida facilities or Florida employees, in whole or in part, and

524

to which the grantee becomes entitled during the 20 years

525

following the effective date of the contract between the

526

corporation and the grantee. For purposes of this paragraph, the

527

term "net royalty revenues" means all royalty revenues less the

528

cost of obtaining, maintaining, and enforcing related patent and

529

intellectual property rights, both foreign and domestic.

530

Reinvestment payments under this paragraph shall commence no

531

later than 6 months after the grantee has received the final

532

disbursement under the contract and shall continue until the

533

maximum reinvestment has been paid.

534

     (b)  The grantee shall reinvest 15 percent of the gross

535

revenues it receives from naming opportunities associated with

536

any facility it builds in this state. For purposes of this

537

section, the term "naming opportunities" includes charitable

538

donations from any person or entity in consideration for the

539

right to have all or a portion of the facility named for or in

540

the memory of any person, living or dead, or for any entity. The

541

obligation to make reinvestment payments under this section shall

542

commence upon the execution of the contract between the

543

corporation and the grantee.

544

545

All reinvestment payments made pursuant to this section shall be

546

remitted to the state for deposit in the Biomedical Research

547

Trust Fund or, if such fund has ceased to exist, in another trust

548

fund that supports biomedical research, as determined by law. The

549

maximum reinvestment required of the grantee pursuant to this

550

subsection shall not exceed $200 million. At such time as the

551

reinvestment payments equal $155 million or the contract expires,

552

whichever is earlier, the board of the corporation shall

553

determine whether the performance expectations and disbursement

554

conditions have been met. If the board determines that the

555

performance expectations and disbursement conditions have been

556

met, the amount of $200 million shall be reduced to $155 million.

557

The grantee shall annually submit a schedule of the shares of

558

stock held by it as payment of the royalty referred to in

559

paragraph (a) and report on any trades or activity concerning

560

such stock. The grantee's obligations under this subsection shall

561

survive the expiration or termination of the contract between the

562

corporation and the grantee.

563

     (14) ANNUAL REPORT ON THE SCRIPPS RESEARCH INSTITUTE.--By

564

December 1 of each year, the corporation shall prepare a report

565

of the activities and outcomes under this section for the

566

preceding fiscal year. The report, at a minimum, must include:

567

     (a)  A description of the activities of the corporation in

568

managing and enforcing the contract with the grantee.

569

     (b)  An accounting of the amount of funds disbursed during

570

the preceding fiscal year to the grantee.

571

     (c)  An accounting of expenditures by the grantee during the

572

fiscal year of funds disbursed under this section.

573

     (d)  Information on the number and salary level of jobs

574

created by the grantee, including the number and salary level of

575

jobs created for residents of this state.

576

     (e)  Information on the amount and nature of economic

577

activity generated through the activities of the grantee.

578

     (f)  An assessment of factors affecting the progress toward

579

achieving the projected biotech industry cluster associated with

580

the grantee's operations, as projected by economists on behalf of

581

the Executive Office of the Governor.

582

     (g)  A compliance and financial audit of the accounts and

583

records of the corporation at the end of the preceding fiscal

584

year conducted by an independent certified public accountant in

585

accordance with rules of the Auditor General.

586

     (h)  A description of the status of the performance

587

expectations under subsection (9) and the disbursement conditions

588

under subsection (10).

589

590

The corporation shall submit the report to the Governor, the

591

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

592

Representatives.

593

     (15) REPORT ON INNOVATION INCENTIVE PROGRAM

594

ACTIVITIES.--The corporation shall prepare an annual report of

595

the activities and outcomes related to its oversight role for the

596

Innovation Incentive Program for the preceding fiscal year. The

597

report, at a minimum, must include:

598

     (a) An assessment of the progress made by each grant

599

recipient of the Innovation Incentive Program in achieving its

600

agreement objectives, benchmarks, and performance expectations,

601

and a discussion of all relevant factors related to its progress

602

or lack thereof.

603

     (b) A review of the previous year's compliance and

604

financial audits of the accounts and records of each grant

605

recipient conducted by an independent certified public accountant

606

in accordance with rules of the Auditor General.

607

     (c) Any recommended legislative changes or administrative

608

improvements that may be undertaken by the Executive Office of

609

the Governor.

610

611

The corporation shall submit the report to the Governor, the

612

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

613

Representatives by January 10 of each year, beginning in 2009.

614

     (16)(15) PROGRAM EVALUATION.--

615

     (a)  Before January 1, 2007, the Office of Program Policy

616

Analysis and Government Accountability shall conduct a

617

performance audit of the Office of Tourism, Trade, and Economic

618

Development and the corporation relating to the provisions of

619

this section. The audit shall assess the implementation and

620

outcomes of activities under this section. At a minimum, the

621

audit shall address:

622

     1.  Performance of the Office of Tourism, Trade, and

623

Economic Development in disbursing funds appropriated under this

624

section.

625

     2.  Performance of the corporation in managing and enforcing

626

the contract with the grantee.

627

     3.  Compliance by the corporation with the provisions of

628

this section and the provisions of the contract.

629

     4.  Economic activity generated through funds disbursed

630

under the contract.

631

     (b)  Before January 1, 2010, the Office of Program Policy

632

Analysis and Government Accountability shall update the report

633

required under paragraph (a) this subsection. In addition to

634

addressing the items prescribed in paragraph (a), the updated

635

report shall include a recommendation on whether the Legislature

636

should retain the statutory authority for the corporation taking

637

into account the corporation's oversight role for the Innovation

638

Incentive Program.

639

640

A report of each audit's findings and recommendations shall be

641

submitted to the Governor, the President of the Senate, and the

642

Speaker of the House of Representatives. In completing the

643

performance audits required under this subsection, the Office of

644

Program Policy Analysis and Government Accountability shall

645

maximize the use of reports submitted by the grantee to the

646

Federal Government or to other organizations awarding research

647

grants to the grantee.

648

     (17)(16) LIABILITY.--

649

     (a)  The appropriation or disbursement of funds under this

650

section does not constitute a debt, liability, or obligation of

651

the State of Florida, any political subdivision thereof, or the

652

corporation or a pledge of the faith and credit of the state or

653

of any such political subdivision.

654

     (b)  The appropriation or disbursement of funds under this

655

section does not subject the State of Florida, any political

656

subdivision thereof, or the corporation to liability related to

657

the research activities and research products of the grantee.

658

     (18)(17) FORCE MAJEURE.--Notwithstanding any other

659

provisions contained in this act, if the grantee is prevented

660

from timely achieving any deadlines set forth in this act due to

661

its inability to occupy its permanent Florida facility within 2

662

years after entering into the memorandum of agreement pursuant to

663

s. 403.973, as a result of permitting delays and related

664

administrative or judicial proceedings, acts of God, labor

665

disturbances, or other similar events beyond the control of the

666

grantee, the deadline shall be extended by the number of days by

667

which the grantee was delayed in commencing its occupancy of its

668

permanent Florida facility. In no event shall the extension be

669

for more than 4 years. Upon the occurrence of a force majeure

670

event, the Scripps Florida Funding Corporation shall continue to

671

fund the grantee at a level that permits it to sustain its

672

current level of operations until the force majeure event ceases

673

and the grantee is able to resume the contract schedule governing

674

disbursement.

675

     Section 2.  Section 288.1089, Florida Statutes, is amended

676

to read:

677

     288.1089  Innovation Incentive Program.--

678

     (1)  The Innovation Incentive Program is created within the

679

Office of Tourism, Trade, and Economic Development to ensure that

680

sufficient resources are available to allow the state to respond

681

expeditiously to extraordinary economic opportunities and to

682

compete effectively for high-value research and development and

683

innovation business projects.

684

     (2)  As used in this section, the term:

685

     (a)  "Average private sector wage" means the statewide

686

average wage in the private sector or the average of all private

687

sector wages in the county or in the standard metropolitan area

688

in which the project is located as determined by the Agency for

689

Workforce Innovation.

690

     (b)  "Brownfield area" means an area designated as a

691

brownfield area pursuant to s. 376.80.

692

     (c) "Corporation" means the Scripps Florida Funding

693

Corporation.

694

     (d)(c) "Cumulative investment" means cumulative capital

695

investment and all eligible capital costs, as defined in s.

696

220.191.

697

     (e)(d) "Director" means the director of the Office of

698

Tourism, Trade, and Economic Development.

699

     (f)(e) "Enterprise zone" means an area designated as an

700

enterprise zone pursuant to s. 290.0065.

701

     (g)(f) "Fiscal year" means the state fiscal year.

702

     (h)(g) "Innovation business" means a business expanding or

703

locating in this state that is likely to serve as a catalyst for

704

the growth of an existing or emerging technology cluster or will

705

significantly impact the regional economy in which it is to

706

expand or locate.

707

     (i)(h) "Jobs" means full-time equivalent positions, as that

708

term is consistent with terms used by the Agency for Workforce

709

Innovation and the United States Department of Labor for purposes

710

of unemployment compensation tax administration and employment

711

estimation, resulting directly from a project in this state. The

712

term does not include temporary construction jobs.

713

     (j)(i) "Match" means funding from local sources, public or

714

private, which will be paid to the applicant and which is equal

715

to 100 percent of an award. Eligible match funding may include

716

any tax abatement granted to the applicant under s. 196.1995 or

717

the appraised market value of land, buildings, infrastructure, or

718

equipment conveyed or provided at a discount to the applicant.

719

Complete documentation of a match payment or other conveyance

720

must be presented to and verified by the office prior to transfer

721

of state funds to an applicant. An applicant may not provide,

722

directly or indirectly, more than 5 percent of match funding in

723

any fiscal year. The sources of such funding may not include,

724

directly or indirectly, state funds appropriated from the General

725

Revenue Fund or any state trust fund, excluding tax revenues

726

shared with local governments pursuant to law.

727

     (k) "Naming opportunities" means charitable donations from

728

any person or entity in consideration for the right to have all

729

or a portion of the facility named for or in the memory of any

730

person, living or dead, or for any entity.

731

     (l) "Net royalty revenues" means all royalty revenues less

732

the cost of obtaining, maintaining, and enforcing related patent

733

and intellectual property rights, both foreign and domestic.

734

     (m)(j) "Office" means the Office of Tourism, Trade, and

735

Economic Development.

736

     (n)(k) "Project" means the location to or expansion in this

737

state by an innovation business or research and development

738

applicant approved for an award pursuant to this section.

739

     (o)(l) "Research and development" means basic and applied

740

research in the sciences or engineering, as well as the design,

741

development, and testing of prototypes or processes of new or

742

improved products. Research and development does not include

743

market research, routine consumer product testing, sales

744

research, research in the social sciences or psychology,

745

nontechnological activities, or technical services.

746

     (p)(m) "Research and development facility" means a facility

747

that is predominately engaged in research and development

748

activities. For purposes of this paragraph, the term

749

"predominantly" means at least 51 percent of the time.

750

     (q)(n) "Rural area" means a rural city, rural community, or

751

rural county as defined in s. 288.106.

752

     (3)  To be eligible for consideration for an innovation

753

incentive award, an innovation business or research and

754

development entity must submit a written application to

755

Enterprise Florida, Inc., before making a decision to locate new

756

operations in this state or expand an existing operation in this

757

state. The application must include, but not be limited to:

758

     (a)  The applicant's federal employer identification number,

759

unemployment account number, and state sales tax registration

760

number. If such numbers are not available at the time of

761

application, they must be submitted to the office in writing

762

prior to the disbursement of any payments under this section.

763

     (b)  The location in this state at which the project is

764

located or is to be located.

765

     (c)  A description of the type of business activity,

766

product, or research and development undertaken by the applicant,

767

including six-digit North American Industry Classification System

768

codes for all activities included in the project.

769

     (d)  The applicant's projected investment in the project.

770

     (e)  The total investment, from all sources, in the project.

771

     (f)  The number of net new full-time equivalent jobs in this

772

state the applicant anticipates having created as of December 31

773

of each year in the project; and the average annual wage of such

774

jobs; and the average annual wage of nonmanagement, nonresearch

775

jobs.

776

     (g)  The total number of full-time equivalent employees

777

currently employed by the applicant in this state, if applicable.

778

     (h)  The anticipated commencement date of the project.

779

     (i)  A detailed explanation of why the innovation incentive

780

is needed to induce the applicant to expand or locate in the

781

state and whether an award would cause the applicant to locate or

782

expand in this state.

783

     (j)  If applicable, an estimate of the proportion of the

784

revenues resulting from the project that will be generated

785

outside this state.

786

     (4)  To qualify for review by the office, the applicant

787

must, at a minimum, establish the following to the satisfaction

788

of Enterprise Florida, Inc., and the office:

789

     (a)  The jobs created by the project must pay an estimated

790

annual average wage equaling at least 130 percent of the average

791

private sector wage. The office may waive this average wage

792

requirement at the request of Enterprise Florida, Inc., for a

793

project located in a rural area, a brownfield area, or an

794

enterprise zone, when the merits of the individual project or the

795

specific circumstances in the community in relationship to the

796

project warrant such action. A recommendation for waiver by

797

Enterprise Florida, Inc., must include a specific justification

798

for the waiver and be transmitted to the office in writing. If

799

the director elects to waive the wage requirement, the waiver

800

must be stated in writing and the reasons for granting the waiver

801

must be explained.

802

     (b)  A research and development project must:

803

     1.  Serve as a catalyst for an emerging or evolving

804

technology cluster.

805

     2.  Demonstrate a plan for significant higher education

806

collaboration.

807

     3.  Provide the state, at a minimum, a break-even return on

808

investment within a 20-year period.

809

     4.  Be provided with a one-to-one match from the local

810

community. The match requirement may be reduced or waived in

811

rural areas of critical economic concern or reduced in rural

812

areas, brownfield areas, and enterprise zones.

813

     (c)  An innovation business project in this state, other

814

than a research and development project, must:

815

     1.a.  Result in the creation of at least 1,000 direct, new

816

jobs at the business; or

817

     b.  Result in the creation of at least 500 direct, new jobs

818

if the project is located in a rural area, a brownfield area, or

819

an enterprise zone.

820

     2.  Have an activity or product that is within an industry

821

that is designated as a target industry business under s. 288.106

822

or a designated sector under s. 288.108.

823

     3.a.  Have a cumulative investment of at least $500 million

824

within a 5-year period; or

825

     b.  Have a cumulative investment that exceeds $250 million

826

within a 10-year period if the project is located in a rural

827

area, brownfield area, or an enterprise zone.

828

     4.  Be provided with a one-to-one match from the local

829

community. The match requirement may be reduced or waived in

830

rural areas of critical economic concern or reduced in rural

831

areas, brownfield areas, and enterprise zones.

832

     (5)  Enterprise Florida, Inc., shall evaluate proposals for

833

innovation incentive awards and transmit recommendations for

834

awards to the office. Such evaluation and recommendation must

835

include, but need not be limited to:

836

     (a)  A description of the project, its required facilities,

837

and the associated product, service, or research and development

838

associated with the project.

839

     (b)  The percentage of match provided for the project.

840

     (c)  The number of full-time equivalent jobs that will be

841

created by the project, the total estimated average annual wages

842

of such jobs, the average annual wages of nonmanagement and

843

nonresearch jobs, and the types of business activities and jobs

844

likely to be stimulated by the project.

845

     (d)  The cumulative investment to be dedicated to the

846

project within 5 years and the total investment expected in the

847

project if more than 5 years.

848

     (e)  The projected economic and fiscal impacts on the local

849

and state economies relative to investment.

850

     (f)  A statement of any special impacts the project is

851

expected to stimulate in a particular business sector in the

852

state or regional economy or in the state's universities and

853

community colleges.

854

     (g)  A statement of any anticipated or proposed

855

relationships with state universities.

856

     (h)  A statement of the role the incentive is expected to

857

play in the decision of the applicant to locate or expand in this

858

state.

859

     (i)  A recommendation and explanation of the amount of the

860

award needed to cause the applicant to expand or locate in this

861

state.

862

     (j)  A discussion of the efforts and commitments made by the

863

local community in which the project is to be located to induce

864

the applicant's location or expansion, taking into consideration

865

local resources and abilities.

866

     (k)  A recommendation for specific performance criteria the

867

applicant would be expected to achieve in order to receive

868

payments from the fund and penalties or sanctions for failure to

869

meet or maintain performance conditions.

870

     (l)  For a research and development facility project:

871

     1.  A description of the extent to which the project has the

872

potential to serve as catalyst for an emerging or evolving

873

cluster.

874

     2.  A description of the extent to which the project has or

875

could have a long-term collaborative research and development

876

relationship with one or more universities or community colleges

877

in this state.

878

     3.  A description of the existing or projected impact of the

879

project on established clusters or targeted industry sectors.

880

     4.  A description of the project's contribution to the

881

diversity and resiliency of the innovation economy of this state.

882

     5.  A description of the project's impact on special needs

883

communities, including, but not limited to, rural areas,

884

distressed urban areas, and enterprise zones.

885

     (6)  In consultation with Enterprise Florida, Inc., the

886

office may negotiate the proposed amount of an award for any

887

applicant meeting the requirements of this section. In

888

negotiating such award, the office shall consider the amount of

889

the incentive needed to cause the applicant to locate or expand

890

in this state in conjunction with other relevant applicant impact

891

and cost information and analysis as described in this section.

892

Particular emphasis shall be given to the potential for the

893

project to stimulate additional private investment and high-

894

quality employment opportunities in the area.

895

     (7)(a) Upon receipt of the evaluation and recommendation

896

from Enterprise Florida, Inc., the director shall recommend to

897

the Governor the approval or disapproval of an award. In

898

recommending approval of an award, the director shall include

899

proposed performance conditions that the applicant must meet in

900

order to obtain incentive funds and any other conditions that

901

must be met before the receipt of any incentive funds. The

902

Governor shall consult with the President of the Senate and the

903

Speaker of the House of Representatives before giving approval

904

for an award. Upon review and approval of an award by the

905

Legislative Budget Commission, the Executive Office of the

906

Governor shall release the funds pursuant to the legislative

907

consultation and review requirements set forth in s. 216.177.

908

     (b) No more than 50 percent of the total appropriation for

909

the Innovation Incentive Grant Program in any given fiscal year

910

may be awarded to projects representing any one of the following

911

industries: life sciences, aviation, aerospace, alternative

912

energy, robotics, nanotechnology, or information technology.

913

     (8) After the conditions Upon approval by the Governor and

914

release of the funds as set forth in subsection (7) have been

915

met, the director shall issue a letter certifying the applicant

916

as qualified for an award. The office and the award recipient

917

applicant shall enter into an agreement that sets forth the

918

conditions for payment of incentives. The agreement must include

919

at a minimum:

920

     (a) The total amount of funds awarded.;

921

     (b) The performance conditions that must be met to obtain

922

the award or portions of the award, including, but not limited

923

to, net new employment in the state, average wage, and total

924

cumulative investment. Where applicable, the performance

925

conditions must at least be at the levels specified in this

926

section for an applicant to qualify for consideration for an

927

Innovation Incentive Program grant award.;

928

     (c) Demonstration of a baseline of current service and a

929

measure of enhanced capability.;

930

     (d) The methodology for validating performance.;

931

     (e) The schedule of payments.; and

932

     (f)1. A reinvestment requirement. Each award recipient

933

shall be required to reinvest between 10 percent and 15 percent

934

of the net royalty revenues, including revenues from spin-off

935

companies and the revenues from the sale of stock it receives

936

from the licensing or transfer of inventions, methods, processes,

937

and other patentable discoveries conceived or reduced to practice

938

using its Florida facilities or its Florida-based employees, in

939

whole or in part, and to which the grant recipient becomes

940

entitled during the 20 years following the effective date of its

941

agreement with the state. Each award recipient also shall

942

reinvest between 10 percent and 15 percent of the gross revenues

943

it receives from naming opportunities associated with any

944

facility it builds in this state.

945

     2. Reinvestment payments under this paragraph shall commence

946

no later than 6 months after the grant recipient has received the

947

final disbursement under the contract and continue until the

948

maximum reinvestment, as specified in the contract, has been

949

paid. Reinvestment payments shall be remitted to the state for

950

deposit in the Biomedical Research Trust Fund for companies that

951

specialize in biomedicine or life sciences, or in the Economic

952

Development Trust Fund for companies that specialize in fields

953

other than biomedicine or the life sciences, except that 10

954

percent of each reinvestment payment shall be deposited in the

955

Building Florida's Future Revolving Loan Guarantee Fund for its

956

specified purposes. If these trust funds no longer exist at the

957

time of the reinvestment, the state's share of reinvestment shall

958

be deposited in their successor trust funds, as determined by

959

law. Each award recipient shall annually submit a schedule of the

960

shares of stock held by it as payment of the royalty required by

961

this paragraph and report on any trades or activity concerning

962

such stock. Each award recipient's reinvestment obligations

963

survives the expiration or termination of its agreement with the

964

state.

965

     (g) Sanctions for failure to meet performance conditions,

966

including any clawback provisions.

967

     (h) Requirements for the establishment of internship

968

programs or other learning opportunities for educators and

969

secondary, postsecondary, graduate, and doctoral students.

970

     (i) Requirements for each award recipient to submit

971

quarterly reports and annual reports related to activities and

972

performance to the office and to Enterprise Florida, Inc.

973

     (j) An annual accounting to the office of the expenditure

974

of funds disbursed under this section.

975

     (k) A process for amending the agreement.

976

     (9)  Enterprise Florida, Inc., shall assist the office in

977

validating the performance of an innovation business or research

978

and development facility that has received an award.

979

     (10) At the conclusion of the innovation incentive award

980

agreement, or its earlier termination, Enterprise Florida, Inc.,

981

shall, within 90 days, report the results of the innovation

982

incentive award to the Governor, the President of the Senate, and

983

the Speaker of the House of Representatives.

984

     (11)(10) Each award recipient shall comply with Enterprise

985

Florida, Inc., shall develop business ethics standards developed

986

by Enterprise Florida, Inc., which are based on appropriate best

987

industry practices which shall be applicable to all award

988

recipients. The standards shall address ethical duties of

989

business enterprises, fiduciary responsibilities of management,

990

and compliance with the laws of this state. Enterprise Florida,

991

Inc., may collaborate with the State University System in

992

reviewing and evaluating appropriate business ethics standards.

993

Such standards shall be provided to the Governor, the President

994

of the Senate, and the Speaker of the House of Representatives by

995

December 31, 2006. An award agreement entered into on or after

996

December 31, 2006, shall require a recipient to comply with the

997

business ethics standards developed pursuant to this section.

998

     Section 3.  This act shall take effect upon becoming a law.