Florida Senate - 2008 CS for SB 2778

By the Committee on Transportation and Economic Development Appropriations; and Senators Fasano and Crist

606-07363-08 20082778c1

A bill to be entitled

An act relating to economic development; creating s.

288.061, F.S.; creating a uniform process for the review

and certification of economic development incentive

projects by Enterprise Florida, Inc., and the Office of

Tourism, Trade, and Economic Development; amending ss.

288.063 and 288.0655, F.S.; conforming the review of

transportation projects and rural infrastructure projects

to changes made by the act; amending s. 288.1045, F.S.;

revising the sources of funds that may be used to provide

refunds for the qualified defense contractor tax refund

program; conforming the review of Department of Defense

projects to changes made by the act; providing that the

amount of the tax refund may be reduced by the value of

the land granted; deleting a requirement for an annual

report; amending s. 288.106. F.S.; revising information

that must be submitted by a qualified target industry

business applying for a tax refund; conforming the

application process to changes made by the act; amending

s. 288.107, F.S.; conforming review of applications for

payment of brownfield redevelopment bonus refunds to

changes made by the act; amending s. 288.108, F.S.;

conforming the review of grant applications for high-

impact businesses to changes made by the act; deleting

provisions requiring an annual report; amending s.

288.1088, F.S.; conforming the review of projects funded

by the Quick Action Closing Fund to changes made by the

act; amending s. 288.1089, F.S.; providing definitions;

revising application requirements for innovation incentive

awards; revising evaluation and recommendation

requirements for innovative incentive awards; requiring

the Legislative Budget Commission to review and approve an

innovation incentive award before the Executive Office of

the Governor releases the funds; revising agreement

requirements for payment of incentives; requiring award

recipients to comply with certain business ethics

developed by Enterprise Florida, Inc.; amending s.

288.955, F.S.; revising definitions; requiring the Scripps

Florida Funding Corporation, along with the Office of

Tourism, Trade, and Economic Development and Enterprise

Florida, Inc., to review the performance and progress of

grant recipients of the Innovation Incentive Program;

revising membership requirements of the board of directors

of the Scripps Florida Funding Corporation; authorizing

the corporation to include on the same meeting agenda

matters related to The Scripps Research Institute and the

Innovation Incentive Program; deleting obsolete

provisions; revising the duties of the corporation;

revising the contract requirements between the corporation

and the grant recipients; requiring the corporation to

submit to the Governor and the Legislature a report

related to the activities of the Innovation Incentive

Program; providing requirements for the report; amending

s. 288.9624, F.S.; providing that venture-capital funds

affiliated with certain state universities are eligible

for investment by the Florida Opportunity Fund; providing

an effective date.

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

Section 1. Section 288.061, Florida Statutes, is created to

read:

288.061 Economic development incentive application

process.--

(1) In order to expedite and provide a quick review process

for certifying economic development incentive applications under

this part, Enterprise Florida, Inc., shall review each submitted

application and inform the applicant if its application is not

complete within 10 business days. Once the application is deemed

complete, Enterprise Florida, Inc., shall have 10 business days

to evaluate the application and recommend approval or disapproval

to the director of the Office of Tourism, Trade, and Economic

Development. In recommending approval, Enterprise Florida, Inc.,

shall include in its evaluation a recommended grant award amount

and a review of the applicant's ability to meet specific program

criteria.

(2) Upon receipt of the evaluation and recommendation of

Enterprise Florida, Inc., the Office of Tourism, Trade, and

Economic Development shall have 10 calendar days to notify

Enterprise Florida, Inc., if the application is not complete. The

director shall have 35 calendar days following the time the

recommendation is received from Enterprise Florida, Inc., to

review the application and issue a letter of certification to the

applicant which approves or disapproves the application and

includes justification, unless the applicant requests an

extension of time. The final order shall specify the total amount

of the award, the performance conditions that must be met in

order to obtain the award, and the schedule for payment.

Section 2. Subsection (4) of section 288.063, Florida

Statutes, is amended to read:

288.063 Contracts for transportation projects.--

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

may adopt criteria by which transportation projects are to be

reviewed and certified in accordance with s. 288.061 specified

and identified. In approving transportation projects for funding,

the office of Tourism, Trade, and Economic Development shall

consider factors including, but not limited to, the cost per job

created or retained considering the amount of transportation

funds requested; the average hourly rate of wages for jobs

100

created; the reliance on the program as an inducement for the

101

project's location decision; the amount of capital investment to

102

be made by the business; the demonstrated local commitment; the

103

location of the project in an enterprise zone designated pursuant

104

to s. 290.0055; the location of the project in a spaceport

105

territory as defined in s. 331.304; the unemployment rate of the

106

surrounding area; the poverty rate of the community; and the

107

adoption of an economic element as part of its local

108

comprehensive plan in accordance with s. 163.3177(7)(j). The

109

office of Tourism, Trade, and Economic Development may contact

110

any agency it deems appropriate for additional input regarding

111

the approval of projects.

112

Section 3. Subsection (3) of section 288.0655, Florida

113

Statutes, is amended to read:

114

288.0655 Rural Infrastructure Fund.--

115

(3) The office, in consultation with Enterprise Florida,

116

Inc., VISIT Florida, the Department of Environmental Protection,

117

and the Florida Fish and Wildlife Conservation Commission, as

118

appropriate, shall review and certify applications pursuant to s.

119

288.061. The review shall include an evaluation of and evaluate

120

the economic benefit of the projects and their long-term

121

viability. The office shall have final approval for any grant

122

under this section and must make a grant decision within 30 days

123

of receiving a completed application.

124

Section 4. Paragraph (f) of subsection (2), paragraphs (b),

125

(c), (d), (g), and (h) of subsection (3), paragraph (c) of

126

subsection (5), and paragraphs (d) and (e) of subsection (6) of

127

section 288.1045, Florida Statutes, are amended to read:

128

288.1045 Qualified defense contractor tax refund program.--

129

(2) GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.--

130

(f) After entering into a tax refund agreement pursuant to

131

subsection (4), a qualified applicant may:

132

1. Receive refunds from the account for corporate income

133

taxes due and paid pursuant to chapter 220 by that business

134

beginning with the first taxable year of the business after

135

entering into the agreement.

136

2. Receive funds from the General Revenue Fund and the

137

Economic Development Trust Fund for the following taxes due and

138

paid by that business the qualified applicant beginning with the

139

applicant's first taxable year that begins after entering into

140

the agreement:

141

a.1. Taxes on sales, use, and other transactions paid

142

pursuant to chapter 212.

143

2. Corporate income taxes paid pursuant to chapter 220.

144

b.3. Intangible personal property taxes paid pursuant to

145

chapter 199.

146

c.4. Emergency excise taxes paid pursuant to chapter 221.

147

d.5. Excise taxes paid on documents pursuant to chapter

148

201.

149

e.6. Ad valorem taxes paid, as defined in s. 220.03(1)(a)

150

on June 1, 1996.

151

f.7. State communications services taxes administered under

152

chapter 202. This provision does not apply to the gross receipts

153

tax imposed under chapter 203 and administered under chapter 202

154

or the local communications services tax authorized under s.

155

202.19.

156

157

However, a qualified applicant may not receive a tax refund

158

pursuant to this section for any amount of credit, refund, or

159

exemption granted such contractor for any of such taxes. If a

160

refund for such taxes is provided by the office, which taxes are

161

subsequently adjusted by the application of any credit, refund,

162

or exemption granted to the qualified applicant other than that

163

provided in this section, the qualified applicant shall reimburse

164

the Economic Development Trust Fund for the amount of such

165

credit, refund, or exemption. A qualified applicant must notify

166

and tender payment to the office within 20 days after receiving a

167

credit, refund, or exemption, other than that provided in this

168

section. The addition of communications services taxes

169

administered under chapter 202 is remedial in nature and

170

retroactive to October 1, 2001. The office may make supplemental

171

tax refund payments to allow for tax refunds for communications

172

services taxes paid by an eligible qualified defense contractor

173

after October 1, 2001.

174

(3) APPLICATION PROCESS; REQUIREMENTS; AGENCY

175

DETERMINATION.--

176

(b) Applications for certification based on the

177

consolidation of a Department of Defense contract or a new

178

Department of Defense contract must be submitted to the office as

179

prescribed by the office and must include, but are not limited

180

to, the following information:

181

1. The applicant's federal employer identification number,

182

the applicant's Florida sales tax registration number, and the a

183

notarized signature of an officer of the applicant.

184

2. The permanent location of the manufacturing, assembling,

185

fabricating, research, development, or design facility in this

186

state at which the project is or is to be located.

187

3. The Department of Defense contract numbers of the

188

contract to be consolidated, the new Department of Defense

189

contract number, or the "RFP" number of a proposed Department of

190

Defense contract.

191

4. The date the contract was executed or is expected to be

192

executed, and the date the contract is due to expire or is

193

expected to expire.

194

5. The commencement date for project operations under the

195

contract in this state.

196

6. The number of net new full-time equivalent Florida jobs

197

included in the project as of December 31 of each year and the

198

average wage of such jobs.

199

7. The total number of full-time equivalent employees

200

employed by the applicant in this state.

201

8. The percentage of the applicant's gross receipts derived

202

from Department of Defense contracts during the 5 taxable years

203

immediately preceding the date the application is submitted.

204

9. The number of full-time equivalent jobs in this state to

205

be retained by the project.

206

10. The estimated amount of tax refunds to be claimed for

207

each fiscal year.

208

10.11. A brief statement concerning the applicant's need

209

for tax refunds, and the proposed uses of such refunds by the

210

applicant.

211

11.12. A resolution adopted by the governing board county

212

commissioners of the county or municipality in which the project

213

will be located, which recommends that the applicant be approved

214

as a qualified applicant, and which indicates that the necessary

215

commitments of local financial support for the applicant exist.

216

Prior to the adoption of the resolution, the county commission

217

may review the proposed public or private sources of such support

218

and determine whether the proposed sources of local financial

219

support can be provided or, for any applicant whose project is

220

located in a county designated by the Rural Economic Development

221

Initiative, a resolution adopted by the county commissioners of

222

such county requesting that the applicant's project be exempt

223

from the local financial support requirement.

224

12.13. Any additional information requested by the office.

225

226

of defense production jobs to nondefense production jobs must be

227

submitted to the office as prescribed by the office and must

228

include, but are not limited to, the following information:

229

1. The applicant's federal employer identification number,

230

the applicant's Florida sales tax registration number, and a

231

notarized signature of an officer of the applicant.

232

2. The permanent location of the manufacturing, assembling,

233

fabricating, research, development, or design facility in this

234

state at which the project is or is to be located.

235

3. The Department of Defense contract numbers of the

236

contract under which the defense production jobs will be

237

converted to nondefense production jobs.

238

4. The date the contract was executed, and the date the

239

contract is due to expire or is expected to expire, or was

240

canceled.

241

5. The commencement date for the nondefense production

242

operations in this state.

243

6. The number of net new full-time equivalent Florida jobs

244

included in the nondefense production project as of December 31

245

of each year and the average wage of such jobs.

246

7. The total number of full-time equivalent employees

247

employed by the applicant in this state.

248

8. The percentage of the applicant's gross receipts derived

249

from Department of Defense contracts during the 5 taxable years

250

immediately preceding the date the application is submitted.

251

9. The number of full-time equivalent jobs in this state to

252

be retained by the project.

253

10. The estimated amount of tax refunds to be claimed for

254

each fiscal year.

255

10.11. A brief statement concerning the applicant's need

256

for tax refunds, and the proposed uses of such refunds by the

257

applicant.

258

11.12. A resolution adopted by the governing board county

259

commissioners of the county or municipality in which the project

260

will be located, which recommends that the applicant be approved

261

as a qualified applicant, and which indicates that the necessary

262

commitments of local financial support for the applicant exist.

263

Prior to the adoption of the resolution, the county commission

264

may review the proposed public or private sources of such support

265

and determine whether the proposed sources of local financial

266

support can be provided or, for any applicant whose project is

267

located in a county designated by the Rural Economic Development

268

Initiative, a resolution adopted by the county commissioners of

269

such county requesting that the applicant's project be exempt

270

from the local financial support requirement.

271

12.13. Any additional information requested by the office.

272

(d) Applications for certification based on a contract for

273

reuse of a defense-related facility must be submitted to the

274

office as prescribed by the office and must include, but are not

275

limited to, the following information:

276

1. The applicant's Florida sales tax registration number

277

and the a notarized signature of an officer of the applicant.

278

2. The permanent location of the manufacturing, assembling,

279

fabricating, research, development, or design facility in this

280

state at which the project is or is to be located.

281

3. The business entity holding a valid Department of

282

Defense contract or branch of the Armed Forces of the United

283

States that previously occupied the facility, and the date such

284

entity last occupied the facility.

285

4. A copy of the contract to reuse the facility, or such

286

alternative proof as may be prescribed by the office that the

287

applicant is seeking to contract for the reuse of such facility.

288

5. The date the contract to reuse the facility was executed

289

or is expected to be executed, and the date the contract is due

290

to expire or is expected to expire.

291

6. The commencement date for project operations under the

292

contract in this state.

293

7. The number of net new full-time equivalent Florida jobs

294

included in the project as of December 31 of each year and the

295

average wage of such jobs.

296

8. The total number of full-time equivalent employees

297

employed by the applicant in this state.

298

9. The number of full-time equivalent jobs in this state to

299

be retained by the project.

300

10. The estimated amount of tax refunds to be claimed for

301

each fiscal year.

302

10.11. A brief statement concerning the applicant's need

303

for tax refunds, and the proposed uses of such refunds by the

304

applicant.

305

11.12. A resolution adopted by the governing board county

306

commissioners of the county or municipality in which the project

307

will be located, which recommends that the applicant be approved

308

as a qualified applicant, and which indicates that the necessary

309

commitments of local financial support for the applicant exist.

310

Prior to the adoption of the resolution, the county commission

311

may review the proposed public or private sources of such support

312

and determine whether the proposed sources of local financial

313

support can be provided or, for any applicant whose project is

314

located in a county designated by the Rural Economic Development

315

Initiative, a resolution adopted by the county commissioners of

316

such county requesting that the applicant's project be exempt

317

from the local financial support requirement.

318

12.13. Any additional information requested by the office.

319

(g) Applications shall be reviewed and certified pursuant

320

to s. 288.061. If appropriate, the director shall enter into a

321

written agreement with the qualified applicant pursuant to

322

subsection (4). The office shall forward its written findings and

323

evaluation on each application meeting the requirements of

324

paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs (d)

325

and (e) to the director within 60 calendar days after receipt of

326

a complete application. The office shall notify each applicant

327

when its application is complete, and when the 60-day period

328

begins. In its written report to the director, the office shall

329

specifically address each of the factors specified in paragraph

330

(f), and shall make a specific assessment with respect to the

331

minimum requirements established in paragraph (e). The office

332

shall include in its report projections of the tax refunds the

333

applicant would be eligible to receive in each fiscal year based

334

on the creation and maintenance of the net new Florida jobs

335

specified in subparagraph (b)6., subparagraph (c)6., or

336

subparagraph (d)7. as of December 31 of the preceding state

337

fiscal year.

338

(h) Within 30 days after receipt of the office's findings

339

and evaluation, the director shall issue a letter of

340

certification which either approves or disapproves an

341

application. The decision must be in writing and provide the

342

justifications for either approval or disapproval. If

343

appropriate, the director shall enter into a written agreement

344

with the qualified applicant pursuant to subsection (4).

345

(5) ANNUAL CLAIM FOR REFUND FROM A QUALIFIED DEFENSE

346

CONTRACTOR.--

347

348

applicant unless local financial support has been paid to the

349

Economic Development Trust Fund for that refund. If the local

350

financial support is less than 20 percent of the approved tax

351

refund, the tax refund shall be reduced. The tax refund paid may

352

not exceed 5 times the local financial support received. Funding

353

from local sources includes tax abatement under s. 196.1995 or

354

the appraised market value of municipal or county land, including

355

any improvements or structures conveyed or provided at a discount

356

through a sale of lease to that provided to a qualified

357

applicant. The amount of any tax refund for an applicant approved

358

under this section shall be reduced by the amount of any such tax

359

abatement granted or the value of the land granted, including the

360

value of any improvements or structures, and the limitations in

361

subsection (2) and paragraph (3)(h) shall be reduced by the

362

amount of any such tax abatement or the value of the land

363

granted, including any improvements or structures. A report

364

listing all sources of the local financial support shall be

365

provided to the office if when such support is paid to the

366

Economic Development Trust Fund.

367

(6) ADMINISTRATION.--

368

(d) By December 1 of each year, the office shall submit a

369

complete and detailed report to the Governor, the President of

370

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

371

all tax refunds paid under this section, including analyses of

372

benefits and costs, types of projects supported, employment and

373

investment created, geographic distribution of tax refunds

374

granted, and minority business participation. The report must

375

indicate whether the moneys appropriated by the Legislature to

376

the qualified applicant tax refund program were expended in a

377

prudent, fiducially sound manner.

378

(d)(e) Funds specifically appropriated for the tax refund

379

program under this section may not be used for any purpose other

380

than the payment of tax refunds authorized by this section.

381

Section 5. Subsection (3) of section 288.106, Florida

382

Statutes, is amended to read:

383

288.106 Tax refund program for qualified target industry

384

businesses.--

385

(3) APPLICATION AND APPROVAL PROCESS.--

386

(a) To apply for certification as a qualified target

387

industry business under this section, the business must file an

388

application with the office before the business has made the

389

decision to locate a new business in this state or before the

390

business had made the decision to expand an existing business in

391

this state. The application must shall include, but is not

392

limited to, the following information:

393

1. The applicant's federal employer identification number

394

and the applicant's state sales tax registration number.

395

2. The permanent location of the applicant's facility in

396

this state at which the project is or is to be located.

397

3. A description of the type of business activity or

398

product covered by the project, including, at a minimum, the

399

NAICS four-digit SIC codes for all activities included in the

400

project.

401

4. The number of net new full-time equivalent state Florida

402

jobs at the qualified target industry business as of December 31

403

of each year included in the project and the average wage for of

404

those jobs. If more than one type of business activity or product

405

is included in the project, the number of jobs and average wage

406

for those jobs must be separately stated for each type of

407

business activity or product.

408

5. The total number of full-time equivalent employees

409

employed by the applicant in this state.

410

6. The anticipated commencement date of the project.

411

7. A brief statement concerning the role that the tax

412

refunds requested will play in the decision of the applicant to

413

locate or expand in this state.

414

8. An estimate of the proportion of the sales resulting

415

from the project that will be made outside this state.

416

9. A resolution adopted by the governing board of the

417

county or municipality in which the project will be located,

418

which resolution recommends that certain types of businesses be

419

approved as a qualified target industry business and states that

420

the commitments of local financial support necessary for the

421

target industry business exist. In advance of the passage of such

422

resolution, the office may also accept an official letter from an

423

authorized local economic development agency that endorses the

424

proposed target industry project and pledges that sources of

425

local financial support for such project exist. For the purposes

426

of making pledges of local financial support under this

427

subsection, the authorized local economic development agency must

428

shall be officially designated by the passage of a one-time

429

resolution by the local governing authority.

430

10. Any additional information requested by the office.

431

(b) To qualify for review by the office, the application of

432

a target industry business must, at a minimum, establish the

433

following to the satisfaction of the office:

434

1. The jobs proposed to be provided under the application,

435

pursuant to subparagraph (a)4., must pay an estimated annual

436

average wage equaling at least 115 percent of the average private

437

sector wage in the area where the business is to be located or

438

the statewide private sector average wage. In determining the

439

average annual wage, the office shall include only new proposed

440

jobs, and wages for existing jobs shall be excluded from the

441

calculation. The office may waive the this average wage

442

requirement at the request of the local governing body

443

recommending the project and Enterprise Florida, Inc. The wage

444

requirement may only be waived for a project located in a

445

brownfield area designated under s. 376.80, or in a rural city or

446

county, or in an enterprise zone and only when the merits of the

447

individual project or the specific circumstances in the community

448

in relationship to the project warrant such action. If the local

449

governing body and Enterprise Florida, Inc., make such a

450

recommendation, it must be transmitted in writing and the

451

specific justification for the waiver recommendation must be

452

explained. If the director elects to waive the wage requirement,

453

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

454

the waiver must be explained.

455

2. The target industry business's project must result in

456

the creation of at least 10 jobs at such project and, if an

457

expansion of an existing business, must result in a net increase

458

in employment of at least not less than 10 percent at the such

459

business. Notwithstanding the definition of the term "expansion

460

of an existing business" in paragraph (1)(g), at the request of

461

the local governing body recommending the project and Enterprise

462

Florida, Inc., the office may define an "expansion of an existing

463

business" in a rural community or an enterprise zone as the

464

expansion of a business resulting in a net increase in employment

465

of less than 10 percent at such business if the merits of the

466

individual project or the specific circumstances in the community

467

in relationship to the project warrant such action. If the local

468

governing body and Enterprise Florida, Inc., make such a request,

469

it must be transmitted in writing and the specific justification

470

for the request must be explained. If the director elects to

471

grant the such request, it such election must be stated in

472

writing and the reason for granting the request must be

473

explained.

474

3. The business activity or product for the applicant's

475

project is within an industry or industries that have been

476

identified by the office to be high-value-added industries that

477

contribute to the area and to the economic growth of the state

478

and that produce a higher standard of living for residents

479

citizens of this state in the new global economy or that can be

480

shown to make an equivalent contribution to the area and state's

481

economic progress. The director must approve requests to waive

482

the wage requirement for brownfield areas designated under s.

483

376.80 unless it is demonstrated that such action is not in the

484

public interest.

485

486

(b) must be submitted to the office for determination of

487

eligibility. The office shall review and evaluate each

488

application based on, but not limited to, the following criteria:

489

1. Expected contributions to the state strategic economic

490

development plan adopted by Enterprise Florida, Inc., taking into

491

account the long-term effects of the project and of the applicant

492

on the state economy.

493

2. The economic benefit of the jobs created by the project

494

in this state, taking into account the cost and average wage of

495

each job created.

496

3. The amount of capital investment to be made by the

497

applicant in this state.

498

4. The local commitment and support for the project.

499

5. The effect of the project on the local community, taking

500

into account the unemployment rate for the county where the

501

project will be located.

502

6. The effect of any tax refunds granted pursuant to this

503

section on the viability of the project and the probability that

504

the project will be undertaken in this state if such tax refunds

505

are granted to the applicant, taking into account the expected

506

long-term commitment of the applicant to economic growth and

507

employment in this state.

508

7. The expected long-term commitment to this state

509

resulting from the project.

510

8. A review of the business's past activities in this state

511

or other states, including whether such business has been

512

subjected to criminal or civil fines and penalties. Nothing in

513

This subparagraph does not shall require the disclosure of

514

confidential information.

515

(d) Applications shall be reviewed and certified pursuant

516

to s. 288.061 The office shall forward its written findings and

517

evaluation concerning each application meeting the requirements

518

of paragraph (b) to the director within 45 calendar days after

519

receipt of a complete application. The office shall notify each

520

target industry business when its application is complete, and of

521

the time when the 45-day period begins. In its written report to

522

the director, the office shall specifically address each of the

523

factors specified in paragraph (c) and shall make a specific

524

assessment with respect to the minimum requirements established

525

in paragraph (b). The office shall include in its review report

526

projections of the tax refunds the business would be eligible to

527

receive in each fiscal year based on the creation and maintenance

528

of the net new Florida jobs specified in subparagraph (a)4. as of

529

December 31 of the preceding state fiscal year.

530

(e)1. Within 30 days after receipt of the office's findings

531

and evaluation, the director shall issue a letter of

532

certification that either approves or disapproves the application

533

of the target industry business. The decision must be in writing

534

and must provide the justifications for approval or disapproval.

535

2. If appropriate, the director shall enter into a written

536

agreement with the qualified target industry business pursuant to

537

subsection (4).

538

(e)(f) The director may not certify any target industry

539

business as a qualified target industry business if the value of

540

tax refunds to be included in that letter of certification

541

exceeds the available amount of authority to certify new

542

businesses as determined in s. 288.095(3). However, if the

543

commitments of local financial support represent less than 20

544

percent of the eligible tax refund payments, or to otherwise

545

preserve the viability and fiscal integrity of the program, the

546

director may certify a qualified target industry business to

547

receive tax refund payments of less than the allowable amounts

548

specified in paragraph (2)(b). A letter of certification that

549

approves an application must specify the maximum amount of tax

550

refund that will be available to the qualified industry business

551

in each fiscal year and the total amount of tax refunds that will

552

be available to the business for all fiscal years.

553

(f)(g) Nothing in This section does not shall create a

554

presumption that an applicant shall will receive any tax refunds

555

under this section. However, the office may issue nonbinding

556

opinion letters, upon the request of prospective applicants, as

557

to the applicants' eligibility and the potential amount of

558

refunds.

559

Section 6. Paragraph (f) of subsection (4) of section

560

288.107, Florida Statutes, is amended to read:

561

288.107 Brownfield redevelopment bonus refunds.--

562

(4) PAYMENT OF BROWNFIELD REDEVELOPMENT BONUS REFUNDS.--

563

(f) Applications shall be reviewed and certified pursuant

564

to s. 288.106. The office shall review all applications submitted

565

under s. 288.106 or other similar application forms for other

566

eligible businesses as defined in paragraph (1)(e) which indicate

567

that the proposed project will be located in a brownfield and

568

determine, with the assistance of the Department of Environmental

569

Protection, that the project location is within a brownfield as

570

provided in this act.

571

Section 7. Paragraphs (b), (c), and (d) of subsection (5)

572

and subsections (7) and (8) of section 288.108, Florida Statutes,

573

are amended to read:

574

288.108 High-impact business.--

575

(5) APPLICATIONS; CERTIFICATION PROCESS; GRANT AGREEMENT.--

576

(b) Applications shall be reviewed and certified pursuant

577

to s. 288.106 Enterprise Florida, Inc., shall review each

578

submitted application and inform the applicant business whether

579

or not its application is complete within 10 working days. Once

580

the application is deemed complete, Enterprise Florida, Inc., has

581

10 working days within which to evaluate the application and

582

recommend approval or disapproval of the application to the

583

director. In recommending an applicant business for approval,

584

Enterprise Florida, Inc., shall include a recommended grant award

585

amount in its evaluation forwarded to the office.

586

587

Enterprise Florida, Inc., the director has 5 working days to

588

enter a final order that either approves or disapproves an

589

applicant business as a qualified high-impact business facility,

590

unless the business requests an extension of the time. The final

591

order shall specify the total amount of the qualified high-impact

592

business facility performance grant award, the performance

593

conditions that must be met to obtain the award, and the schedule

594

for payment of the performance grant.

595

(c)(d) The director and the qualified high-impact business

596

shall enter into a performance grant agreement setting forth the

597

conditions for payment of the qualified high-impact business

598

performance grant. The agreement shall include the total amount

599

of the qualified high-impact business facility performance grant

600

award, the performance conditions that must be met to obtain the

601

award, including the employment, average salary, investment, the

602

methodology for determining if the conditions have been met, and

603

the schedule of performance grant payments.

604

(7) REPORTING.--The office shall by December 1 of each year

605

issue a complete and detailed report of all designated high-

606

impact sectors, all applications received and their disposition,

607

all final orders issued, and all payments made, including

608

analyses of benefits and costs, types of projects supported, and

609

employment and investments created. The report shall be submitted

610

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

611

the House of Representatives.

612

(7)(8) RULEMAKING.--The office may adopt rules necessary to

613

administer carry out the provisions of this section.

614

Section 8. Paragraph (a) of subsection (3) of section

615

288.1088, Florida Statutes, is amended to read:

616

288.1088 Quick Action Closing Fund.--

617

(3)(a) Enterprise Florida, Inc., shall review applications

618

pursuant to s. 288.061(1) and determine eligibility of each

619

project consistent with the criteria in subsection (2).

620

Enterprise Florida, Inc., in consultation with the Office of

621

Tourism, Trade, and Economic Development, may waive these

622

criteria based on extraordinary circumstances if the project

623

would significantly benefit the local or regional economy.

624

Enterprise Florida, Inc., shall evaluate individual proposals for

625

high-impact business facilities and forward recommendations

626

regarding the use of moneys in the fund for such facilities to

627

the director of the Office of Tourism, Trade, and Economic

628

Development. The Such evaluation and recommendation must include,

629

but need not be limited to:

630

1. A description of the type of facility or infrastructure,

631

its operations, and the associated product or service associated

632

with the facility.

633

2. The number of full-time-equivalent jobs that will be

634

created by the facility and the total estimated average annual

635

wages of those jobs or, in the case of privately developed rural

636

infrastructure, the types of business activities and jobs

637

stimulated by the investment.

638

3. The cumulative amount of investment to be dedicated to

639

the facility within a specified period.

640

4. A statement of any special impacts the facility is

641

expected to stimulate in a particular business sector in the

642

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

643

community colleges.

644

5. A statement of the role the incentive is expected to

645

play in the decision of the applicant business to locate or

646

expand in this state or for the private investor to provide

647

critical rural infrastructure.

648

6. A report evaluating the quality and value of the company

649

submitting a proposal. The report must include:

650

a. A financial analysis of the company, including an

651

evaluation of the company's short-term liquidity ratio as

652

measured by its assets to liability, the company's profitability

653

ratio, and the company's long-term solvency as measured by its

654

debt-to-equity ratio;

655

b. The historical market performance of the company;

656

c. A review of any independent evaluations of the company;

657

d. A review of the latest audit of the company's financial

658

statement and the related auditor's management letter; and

659

e. A review of any other types of audits that are related

660

to the internal and management controls of the company.

661

Section 9. Section 288.1089, Florida Statutes, is amended

662

to read:

663

288.1089 Innovation Incentive Program.--

664

(1) The Innovation Incentive Program is created within the

665

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

666

sufficient resources are available to allow the state to respond

667

expeditiously to extraordinary economic opportunities and to

668

compete effectively for high-value research and development and

669

innovation business projects.

670

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

671

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

672

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

673

sector wages in the county or in the standard metropolitan area

674

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

675

Workforce Innovation.

676

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

677

brownfield area pursuant to s. 376.80.

678

679

Corporation.

680

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

681

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

682

220.191.

683

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

684

Tourism, Trade, and Economic Development.

685

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

686

enterprise zone pursuant to s. 290.0065.

687

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

688

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

689

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

690

the growth of an existing or emerging technology cluster or will

691

significantly impact the regional economy in which it is to

692

expand or locate.

693

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

694

term is consistent with terms used by the Agency for Workforce

695

Innovation and the United States Department of Labor for purposes

696

of unemployment compensation tax administration and employment

697

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

698

term does not include temporary construction jobs.

699

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

700

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

701

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

702

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

703

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

704

equipment conveyed or provided at a discount to the applicant.

705

Complete documentation of a match payment or other conveyance

706

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

707

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

708

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

709

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

710

directly or indirectly, state funds appropriated from the General

711

Revenue Fund or any state trust fund, excluding tax revenues

712

shared with local governments pursuant to law.

713

(k) "Naming opportunities" means charitable donations from

714

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

715

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

716

person, living or dead, or for any entity.

717

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

718

the cost of obtaining, maintaining, and enforcing related patent

719

and intellectual property rights, both foreign and domestic.

720

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

721

Economic Development.

722

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

723

state by an innovation business or research and development

724

applicant approved for an award pursuant to this section.

725

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

726

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

727

development, and testing of prototypes or processes of new or

728

improved products. Research and development does not include

729

market research, routine consumer product testing, sales

730

research, research in the social sciences or psychology,

731

nontechnological activities, or technical services.

732

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

733

that is predominately engaged in research and development

734

activities. For purposes of this paragraph, the term

735

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

736

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

737

rural county as defined in s. 288.106.

738

(3) To be eligible for consideration for an innovation

739

incentive award, an innovation business or research and

740

development entity must submit a written application to

741

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

742

operations in this state or expand an existing operation in this

743

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

744

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

745

unemployment account number, and state sales tax registration

746

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

747

application, they must be submitted to the office in writing

748

prior to the disbursement of any payments under this section.

749

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

750

located or is to be located.

751

752

product, or research and development undertaken by the applicant,

753

including six-digit North American Industry Classification System

754

codes for all activities included in the project.

755

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

756

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

757

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

758

state the applicant anticipates having created as of December 31

759

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

760

jobs; and the average annual wage of nonmanagement, nonresearch

761

jobs.

762

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

763

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

764

(h) The anticipated commencement date of the project.

765

(i) A detailed explanation of why the innovation incentive

766

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

767

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

768

expand in this state.

769

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

770

revenues resulting from the project that will be generated

771

outside this state.

772

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

773

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

774

of Enterprise Florida, Inc., and the office:

775

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

776

annual average wage equaling at least 130 percent of the average

777

private sector wage. The office may waive this average wage

778

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

779

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

780

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

781

specific circumstances in the community in relationship to the

782

project warrant such action. A recommendation for waiver by

783

Enterprise Florida, Inc., must include a specific justification

784

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

785

the director elects to waive the wage requirement, the waiver

786

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

787

must be explained.

788

(b) A research and development project must:

789

1. Serve as a catalyst for an emerging or evolving

790

technology cluster.

791

2. Demonstrate a plan for significant higher education

792

collaboration.

793

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

794

investment within a 20-year period.

795

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

796

community. The match requirement may be reduced or waived in

797

rural areas of critical economic concern or reduced in rural

798

areas, brownfield areas, and enterprise zones.

799

800

than a research and development project, must:

801

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

802

jobs at the business; or

803

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

804

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

805

an enterprise zone.

806

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

807

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

808

or a designated sector under s. 288.108.

809

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

810

within a 5-year period; or

811

b. Have a cumulative investment that exceeds $250 million

812

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

813

area, brownfield area, or an enterprise zone.

814

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

815

community. The match requirement may be reduced or waived in

816

rural areas of critical economic concern or reduced in rural

817

areas, brownfield areas, and enterprise zones.

818

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

819

innovation incentive awards and transmit recommendations for

820

awards to the office. Such evaluation and recommendation must

821

include, but need not be limited to:

822

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

823

and the associated product, service, or research and development

824

associated with the project.

825

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

826

827

created by the project, the total estimated average annual wages

828

of such jobs, the average annual wages of nonmanagement and

829

nonresearch jobs, and the types of business activities and jobs

830

likely to be stimulated by the project.

831

(d) The cumulative investment to be dedicated to the

832

project within 5 years and the total investment expected in the

833

project if more than 5 years.

834

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

835

and state economies relative to investment.

836

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

837

expected to stimulate in a particular business sector in the

838

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

839

community colleges.

840

(g) A statement of any anticipated or proposed

841

relationships with state universities.

842

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

843

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

844

state.

845

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

846

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

847

state.

848

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

849

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

850

the applicant's location or expansion, taking into consideration

851

local resources and abilities.

852

(k) A recommendation for specific performance criteria the

853

applicant would be expected to achieve in order to receive

854

payments from the fund and penalties or sanctions for failure to

855

meet or maintain performance conditions.

856

(l) For a research and development facility project:

857

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

858

potential to serve as catalyst for an emerging or evolving

859

cluster.

860

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

861

could have a long-term collaborative research and development

862

relationship with one or more universities or community colleges

863

in this state.

864

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

865

project on established clusters or targeted industry sectors.

866

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

867

diversity and resiliency of the innovation economy of this state.

868

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

869

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

870

distressed urban areas, and enterprise zones.

871

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

872

office may negotiate the proposed amount of an award for any

873

applicant meeting the requirements of this section. In

874

negotiating such award, the office shall consider the amount of

875

the incentive needed to cause the applicant to locate or expand

876

in this state in conjunction with other relevant applicant impact

877

and cost information and analysis as described in this section.

878

Particular emphasis shall be given to the potential for the

879

project to stimulate additional private investment and high-

880

quality employment opportunities in the area.

881

(7) Upon receipt of the evaluation and recommendation from

882

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

883

Governor the approval or disapproval of an award. In recommending

884

approval of an award, the director shall include proposed

885

performance conditions that the applicant must meet in order to

886

obtain incentive funds and any other conditions that must be met

887

before the receipt of any incentive funds. The Governor shall

888

consult with the President of the Senate and the Speaker of the

889

House of Representatives before giving approval for an award.

890

Upon review and approval of an award by the Legislative Budget

891

Commission, the Executive Office of the Governor shall release

892

the funds pursuant to the legislative consultation and review

893

requirements set forth in s. 216.177.

894

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

895

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

896

met, the director shall issue a letter certifying the applicant

897

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

898

applicant shall enter into an agreement that sets forth the

899

conditions for payment of incentives. The agreement must include

900

at a minimum:

901

(a) The total amount of funds awarded.;

902

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

903

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

904

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

905

cumulative investment. Where applicable, the performance

906

conditions must be at least at the levels specified in this

907

section for an applicant to qualify for consideration for an

908

Innovation Incentive Program grant award.;

909

910

measure of enhanced capability.;

911

(d) The methodology for validating performance.;

912

(e) The schedule of payments.; and

913

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

914

shall be required to reinvest between 10 percent and 15 percent

915

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

916

companies and the revenues from the sale of stock it receives

917

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

918

and other patentable discoveries conceived or reduced to practice

919

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

920

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

921

during the 20 years following the effective date of its agreement

922

with the state. Each award recipient also shall reinvest between

923

10 percent and 15 percent of the gross revenues it receives from

924

naming opportunities associated with any facility it builds in

925

this state.

926

2. Reinvestment payments under this paragraph shall

927

commence no later than 6 months after the grant recipient has

928

received the final disbursement under the contract and continue

929

until the maximum reinvestment, as specified in the contract, has

930

been paid. Reinvestment payments shall be remitted to the state

931

for deposit in the Biomedical Research Trust Fund for companies

932

that specialize in biomedicine or life sciences, or in the

933

Economic Development Trust Fund for companies that specialize in

934

fields other than biomedicine or the life sciences, except that

935

10 percent of each reinvestment payment shall be deposited in the

936

Building Florida's Future Revolving Loan Guarantee Fund for its

937

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

938

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

939

be deposited in their successor trust funds, as determined by

940

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

941

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

942

this paragraph and report on any trades or activity concerning

943

such stock. Each award recipient's reinvestment obligations

944

survives the expiration or termination of its agreement with the

945

state.

946

(g) Sanctions for failure to meet performance conditions,

947

including any clawback provisions.

948

(h) Requirements for the establishment of internship

949

programs or other learning opportunities for educators and

950

secondary, postsecondary, graduate, and doctoral students.

951

(i) Requirements for each award recipient to submit

952

quarterly reports and annual reports related to activities and

953

performance to the office and to Enterprise Florida, Inc.

954

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

955

of funds disbursed under this section.

956

(k) A process for amending the agreement.

957

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

958

validating the performance of an innovation business or research

959

and development facility that has received an award.

960

(10) At the conclusion of the innovation incentive award

961

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

962

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

963

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

964

the Speaker of the House of Representatives.

965

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

966

Florida, Inc., shall develop business ethics standards developed

967

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

968

industry practices which shall be applicable to all award

969

recipients. The standards shall address ethical duties of

970

business enterprises, fiduciary responsibilities of management,

971

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

972

Inc., may collaborate with the State University System in

973

reviewing and evaluating appropriate business ethics standards.

974

Such standards shall be provided to the Governor, the President

975

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

976

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

977

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

978

business ethics standards developed pursuant to this section.

979

Section 10. Section 288.955, Florida Statutes, is amended

980

to read:

981

288.955 Scripps Florida Funding Corporation.--

982

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

983

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

984

Tourism, Trade, and Economic Development and recipients of

985

Innovation Incentive Program grants pursuant to s. 288.1089.

986

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

987

corporation and the grantee under this section.

988

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

989

Corporation created under this section.

990

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

991

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

992

subsidiary, affiliate, or entity formed by The Scripps Research

993

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

994

institution and campus in this state.

995

(2) CREATION.--

996

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

997

the Scripps Florida Funding Corporation, which shall be

998

registered, incorporated, organized, and operated under chapter

999

617.

1000

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

1001

government. However, the corporation is subject to the provisions

1002

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

1003

relating to public meetings and records, and the provisions of

1004

chapter 286 relating to public meetings and records.

1005

1006

office in this state and appoint a registered agent.

1007

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

1008

necessary to the proper execution of its powers and duties within

1009

the funds appropriated to implement this section and shall

1010

require that all officers, directors, and employees of the

1011

corporation comply with the code of ethics for public officers

1012

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

1013

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

1014

$200,000 per year thereafter for staffing and necessary

1015

administrative expenditures, including, but not limited to,

1016

travel and per diem and audit expenditures, using funds

1017

appropriated to implement this section.

1018

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

1019

shall provide administrative support to the corporation as

1020

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

1021

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

1022

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

1023

of the corporation under any contract to which the corporation is

1024

then a party and under law.

1025

(3) PURPOSES PURPOSE.--

1026

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

1027

invest, administer, and disburse funds appropriated by the

1028

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

1029

the-art biomedical research institution and campus in this state

1030

by The Scripps Research Institute. The corporation shall

1031

safeguard the state's commitment of financial support by ensuring

1032

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

1033

meets its contractual obligations. In this manner, the

1034

corporation shall facilitate and oversee the state goal and

1035

public purpose of providing financial support for the institution

1036

and campus in order to expand the amount and prominence of

1037

biomedical research conducted in this state, provide an

1038

inducement for high-technology businesses to locate in this

1039

state, create educational opportunities through access to and

1040

partnerships with the institution, and promote improved health

1041

care through the scientific outcomes of the institution.

1042

(b) The corporation also shall serve in an oversight

1043

capacity for the Innovation Incentive Program created in s.

1044

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

1045

partnership with the Office of Tourism, Trade, and Economic

1046

Development and Enterprise Florida, Inc., in reviewing the

1047

performance and progress of grant recipients of the Innovation

1048

Incentive Program.

1049

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

1050

by a board of directors.

1051

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

1052

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

1053

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

1054

of Representatives shall appoint three. The director of the

1055

Office of Tourism, Trade, and Economic Development or the

1056

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

1057

member of the board of directors.

1058

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

1059

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

1060

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

1061

Representatives each shall appoint one member for a term of 1

1062

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

1063

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

1064

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

1065

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

1066

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

1067

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

1068

less remaining on the term may be reappointed for an additional

1069

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

1070

the Speaker of the House of Representatives shall make their

1071

initial appointments to the board by November 15, 2003.

1072

1073

Speaker of the House of Representatives, respectively, shall fill

1074

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

1075

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

1076

expired. A vacancy that occurs before the scheduled expiration of

1077

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

1078

unexpired term.

1079

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

1080

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

1081

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

1082

of financial interests under s. 112.3145.

1083

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

1084

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

1085

franchise, privilege, or other benefit granted by The Scripps

1086

Research Institute, or any of its affiliate organizations, or

1087

with any grant recipients of the Innovation Incentive Program

1088

within 5 years before appointment. A person appointed to the

1089

board of directors must agree to refrain from having any direct

1090

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

1091

granted by The Scripps Research Institute, or any of its

1092

affiliate organizations, or with any grant recipients of the

1093

Innovation Incentive Program during the term of his or her

1094

appointment and for 5 years after the termination of such

1095

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

1096

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

1097

appointment to the board of directors in violation of this

1098

paragraph or to accept a direct interest in any contract,

1099

franchise, privilege, or other benefit granted by the institution

1100

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

1101

service on the board.

1102

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

1103

without compensation, but shall receive travel and per diem

1104

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

1105

his or her duties.

1106

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

1107

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

1108

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

1109

that funds provided in furtherance of this section are disbursed

1110

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

1111

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

1112

Representatives, according to which officer appointed the member,

1113

may remove a member for malfeasance, misfeasance, neglect of

1114

duty, incompetence, permanent inability to perform official

1115

duties, unexcused absence from three consecutive meetings of the

1116

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

1117

misdemeanor involving theft or a crime of dishonesty, or pleading

1118

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

1119

(5) ORGANIZATION; MEETINGS.--

1120

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

1121

chairperson and a vice chairperson from among the board's

1122

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

1123

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

1124

chairperson prior to the expiration of his or her term as

1125

chairperson or vice chairperson. His or her successor shall be

1126

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

1127

vice chairperson's term.

1128

2. The chairperson is responsible to ensure that records

1129

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

1130

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

1131

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

1132

seal of the corporation.

1133

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

1134

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

1135

but no less than three times per calendar year.

1136

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

1137

directors constitutes a quorum. Except as otherwise provided in

1138

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

1139

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

1140

present. Members may not vote by proxy.

1141

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

1142

the board by telephone or videoconference through which each

1143

member may hear every other member.

1144

1145

matters related to The Scripps Research Institute and the

1146

Innovation Incentive Program.

1147

(6) POWERS AND DUTIES.--

1148

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

1149

administer, and disburse funds appropriated by the Legislature in

1150

support of The Scripps Research Institute this section and to

1151

disburse any income generated from the investment of these funds

1152

consistent with the purpose and provisions of this section. In

1153

addition to the powers and duties prescribed in chapter 617 and

1154

the articles and bylaws adopted under that chapter, the

1155

corporation:

1156

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

1157

other functions that are necessary to carry out the provisions of

1158

this section related to The Scripps Research Institute.

1159

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

1160

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

1161

security agreements to secure the performance of obligations of

1162

the grantee under the contract.

1163

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

1164

convenient to carry out the powers expressly granted in this

1165

section and in the a contract entered into between the

1166

corporation and the grantee.

1167

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

1168

state, including any necessary administrative expenditures

1169

consistent with its powers.

1170

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

1171

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

1172

against any personal liability or accountability.

1173

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

1174

this section and a contract entered into between the corporation

1175

and the grantee.

1176

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

1177

documentation provided by the grantee to ensure compliance with

1178

the provisions of this section and provisions of the contract.

1179

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

1180

subsection (14).

1181

(b) The corporation also is directed to:

1182

1. Review the business plans, quarterly reports, annual

1183

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

1184

from the Innovation Incentive Program pursuant to s. 288.1089.

1185

2. Invite all Innovation Incentive Program grant recipients

1186

to appear at its meetings to present progress reports on their

1187

activities.

1188

3. Prepare an annual report as prescribed in subsection

1189

(15).

1190

1191

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

1192

corporation against any personal liability or accountability.

1193

(d) The corporation may otherwise perform all acts and

1194

things necessary or convenient to carry out the powers expressly

1195

granted in this section.

1196

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

1197

an agreement with the State Board of Administration under which

1198

funds received by the corporation from the Office of Tourism,

1199

Trade, and Economic Development which are not disbursed to the

1200

grantee shall be invested by the State Board of Administration on

1201

behalf of the corporation. Funds shall be invested in suitable

1202

instruments authorized under s. 215.47 and specified in

1203

investment guidelines established and agreed to by the State

1204

Board of Administration and the corporation.

1205

(8) CONTRACT.--

1206

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

1207

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

1208

shall negotiate and execute a contract with the grantee for a

1209

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

1210

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

1211

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

1212

The corporation may not execute the contract unless the contract

1213

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

1214

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

1215

execution of the contract, The Scripps Research Institute must

1216

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

1217

and the Speaker of the House of Representatives an organizational

1218

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

1219

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

1220

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

1221

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

1222

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

1223

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

1224

1. Specifying the procedures and schedules that govern the

1225

disbursement of funds under this section and specifying the

1226

conditions or deliverables that the grantee must satisfy before

1227

the release of each disbursement.

1228

2. Requiring the grantee to submit to the corporation a

1229

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

1230

3. Prohibiting The Scripps Research Institute or the

1231

grantee from establishing other biomedical science or research

1232

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

1233

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

1234

in this subparagraph shall prohibit the grantee from establishing

1235

or engaging in normal collaborative activities with other

1236

organizations.

1237

4. Governing the ownership of or security interests in real

1238

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

1239

research equipment, obtained through the financial support of

1240

state or local government, including a provision that in the

1241

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

1242

ceases operations in this state, such property purchased with

1243

state funds shall revert to the state and such property purchased

1244

with local funds shall revert to the local governing authority.

1245

5. Requiring the grantee to be an equal opportunity

1246

employer.

1247

6. Requiring the grantee to maintain a policy of awarding

1248

preference in employment to residents of this state, as defined

1249

by law, except for professional scientific staff positions

1250

requiring a doctoral degree, postdoctoral training positions, and

1251

graduate student positions.

1252

7. Requiring the grantee to maintain a policy of making

1253

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

1254

effective and scientifically sound.

1255

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

1256

listing system of the Agency for Workforce Innovation in

1257

advertising employment opportunities.

1258

9. Requiring the grantee to establish accredited science

1259

degree programs.

1260

10. Requiring the grantee to establish internship programs

1261

to create learning opportunities for educators and secondary,

1262

postsecondary, graduate, and doctoral students.

1263

11. Requiring the grantee to submit data to the corporation

1264

on the activities and performance during each fiscal year and to

1265

provide to the corporation an annual accounting of the

1266

expenditure of funds disbursed under this section.

1267

12. Establishing that the corporation shall review the

1268

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

1269

operational compliance with the provisions of the contract and

1270

with relevant provisions of law.

1271

13. Authorizing the grantee, when feasible, to use

1272

information submitted by it to the Federal Government or to other

1273

organizations awarding research grants to the grantee to help

1274

meet reporting requirements imposed under this section or the

1275

contract, if the information satisfies the reporting standards of

1276

this section and the contract.

1277

14. Unless amended pursuant to the force majeure provisions

1278

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

1279

years of the contract to create 545 positions and to acquire

1280

associated research equipment for the grantee's facility in this

1281

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

1282

total amount of not less than $45 million.

1283

15. Requiring the grantee to progress in the creation of

1284

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

1285

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

1286

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

1287

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

1288

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

1289

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

1290

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

1291

allow the grantee flexibility in achieving the objectives set

1292

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

1293

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

1294

the 7th year.

1295

16. Requiring the grantee to allow the corporation to

1296

retain an independent certified public accountant licensed in

1297

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

1298

grantee in order to audit the expenditure of funds disbursed to

1299

the grantee. The independent certified public accountant shall

1300

not disclose any confidential or proprietary scientific

1301

information of the grantee.

1302

17. Requiring the grantee to purchase liability insurance

1303

and governing the coverage level of such insurance.

1304

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

1305

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

1306

nine members of the board of directors.

1307

(9) PERFORMANCE EXPECTATIONS FOR THE SCRIPPS RESEARCH

1308

INSTITUTE.--In addition to the provisions prescribed in

1309

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

1310

grantee shall include a provision that the grantee, in

1311

cooperation with the Office of Tourism, Trade, and Economic

1312

Development, shall report to the corporation on an annual basis

1313

certain performance expectations that reflect the aspirations of

1314

the Governor and the Legislature for the benefits accruing to

1315

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

1316

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

1317

expectations addressing:

1318

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

1319

from the Federal Government or sources other than this state.

1320

(b) The percentage of total research dollars received by

1321

The Scripps Research Institute from sources other than this state

1322

which is used to conduct research activities by the grantee in

1323

this state.

1324

1325

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

1326

the grantee.

1327

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

1328

results in commercial applications.

1329

(f) The number of collaborative agreements reached and

1330

maintained with colleges and universities in this state and with

1331

research institutions in this state, including agreements that

1332

foster participation in research opportunities by public and

1333

private colleges and universities and research institutions in

1334

this state with significant minority populations, including

1335

historically black colleges and universities.

1336

(g) The number of collaborative partnerships established

1337

and maintained with businesses in this state.

1338

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

1339

from sources other than the State of Florida.

1340

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

1341

this state as a result of commercialization of the research of

1342

the grantee.

1343

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

1344

state by the grantee.

1345

(k) The establishment and implementation of policies to

1346

promote supplier diversity using the guidelines developed by the

1347

Office of Supplier Diversity under s. 287.09451 and to comply

1348

with the ordinances, including any small business ordinances,

1349

enacted by the county and which are applicable to the biomedical

1350

research institution and campus located in this state.

1351

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

1352

coordinate with the Office of Supplier Diversity.

1353

(m) The establishment and implementation of a program to

1354

conduct workforce recruitment activities at public and private

1355

colleges and universities and community colleges in this state

1356

which request the participation of the grantee.

1357

1358

The contract shall require the grantee to provide information to

1359

the corporation on the progress in meeting these performance

1360

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

1361

Legislature that, in fulfilling its obligation to work with

1362

Florida's public and private colleges and universities, The

1363

Scripps Research Institute's Florida facility work with such

1364

colleges and universities regardless of size.

1365

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

1366

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

1367

corporation and the grantee shall include disbursement conditions

1368

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

1369

continued disbursement of funds under this section. These

1370

disbursement conditions shall be negotiated between the

1371

corporation and the grantee and shall not be designed to impede

1372

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

1373

disbursement conditions may be appropriately varied as to

1374

timeframes, numbers, values, and percentages. The disbursement

1375

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

1376

areas:

1377

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

1378

salaries paid.

1379

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

1380

its permanent facility, the grantee shall annually obtain

1381

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

1382

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

1383

facility.

1384

1385

its permanent facility, the grantee shall apply to the relevant

1386

accrediting agency for accreditation of its Florida graduate

1387

program.

1388

(d) The grantee shall purchase equipment for its Florida

1389

facility as scheduled in its contract with the corporation.

1390

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

1391

facility, the grantee shall establish a program for qualified

1392

graduate students from Florida universities permitting them

1393

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

1394

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

1395

permanent facility, the grantee shall establish a summer

1396

internship for high school students.

1397

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

1398

facility, the grantee shall establish a research program for

1399

middle and high school teachers.

1400

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

1401

permanent facility, the grantee shall establish a program for

1402

adjunct professors.

1403

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

1404

throughput technology, the grantee shall establish a program to

1405

allow open access for qualified science projects.

1406

(j) Beginning June 2004, The grantee shall collaborate

1407

commence collaborative efforts with Florida public and private

1408

colleges and universities, and shall continue cooperative

1409

collaboration through the term of the agreement.

1410

(k) Beginning 18 months after the grantee occupies the

1411

permanent facility, the grantee shall establish an annual seminar

1412

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

1413

and its collaborators at the Florida facility.

1414

(l) Beginning June 2004, The grantee shall collaborate

1415

commence collaboration efforts with the Office of Tourism, Trade,

1416

and Economic Development by complying with reasonable requests

1417

for cooperation in economic development efforts in the

1418

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

1419

shall also designate a person who shall be charged with assisting

1420

in these collaborative efforts.

1421

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

1422

(a) The corporation shall disburse funds to the grantee

1423

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

1424

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

1425

contract. The corporation shall complete disbursement of the

1426

total amount of funds payable to the grantee under the contract

1427

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

1428

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

1429

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

1430

shall be paid to the Biomedical Research Trust Fund of the

1431

Department of Health.

1432

(b) The contract shall provide for a reduction or

1433

elimination of funding in any year if:

1434

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

1435

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

1436

operations in the state for the succeeding year; or

1437

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

1438

contract, as defined and governed by the contract. Determination

1439

of material default or breach of contract shall require the

1440

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

1441

board.

1442

1443

under this section is conditioned upon the affirmative approval

1444

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

1445

and upon demonstration by the grantee that it has met the

1446

particular contractual deliverables that are the basis for that

1447

disbursement.

1448

(12) USE OF FUNDS.--

1449

(a) Funds appropriated in furtherance of this section may

1450

not be disbursed or expended for activities that do not

1451

principally benefit or that are not directly related to the

1452

establishment or operation of the grantee in this state, except

1453

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

1454

nine members of the board of directors.

1455

(b) No Funds appropriated in furtherance of this section

1456

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

1457

of state government or any political subdivision of the state.

1458

1459

funds appropriated in furtherance of this section and separate

1460

books and records relating to The Scripps Research Institute's

1461

Florida operation.

1462

(13) REINVESTMENT.--

1463

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

1464

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

1465

received by The Scripps Research Institute from the licensing or

1466

transfer of inventions, methods, processes, and other patentable

1467

discoveries conceived or reduced to practice using the grantee's

1468

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

1469

to which the grantee becomes entitled during the 20 years

1470

following the effective date of the contract between the

1471

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

1472

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

1473

cost of obtaining, maintaining, and enforcing related patent and

1474

intellectual property rights, both foreign and domestic.

1475

Reinvestment payments under this paragraph shall commence no

1476

later than 6 months after the grantee has received the final

1477

disbursement under the contract and shall continue until the

1478

maximum reinvestment has been paid.

1479

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

1480

revenues it receives from naming opportunities associated with

1481

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

1482

section, the term "naming opportunities" includes charitable

1483

donations from any person or entity in consideration for the

1484

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

1485

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

1486

obligation to make reinvestment payments under this section shall

1487

commence upon the execution of the contract between the

1488

corporation and the grantee.

1489

1490

All reinvestment payments made pursuant to this section shall be

1491

remitted to the state for deposit in the Biomedical Research

1492

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

1493

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

1494

maximum reinvestment required of the grantee pursuant to this

1495

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

1496

reinvestment payments equal $155 million or the contract expires,

1497

whichever is earlier, the board of the corporation shall

1498

determine whether the performance expectations and disbursement

1499

conditions have been met. If the board determines that the

1500

performance expectations and disbursement conditions have been

1501

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

1502

The grantee shall annually submit a schedule of the shares of

1503

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

1504

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

1505

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

1506

survive the expiration or termination of the contract between the

1507

corporation and the grantee.

1508

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

1509

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

1510

of the activities and outcomes under this section for the

1511

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

1512

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

1513

managing and enforcing the contract with the grantee.

1514

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

1515

the preceding fiscal year to the grantee.

1516

1517

fiscal year of funds disbursed under this section.

1518

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

1519

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

1520

jobs created for residents of this state.

1521

(e) Information on the amount and nature of economic

1522

activity generated through the activities of the grantee.

1523

(f) An assessment of factors affecting the progress toward

1524

achieving the projected biotech industry cluster associated with

1525

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

1526

the Executive Office of the Governor.

1527

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

1528

records of the corporation at the end of the preceding fiscal

1529

year conducted by an independent certified public accountant in

1530

accordance with rules of the Auditor General.

1531

(h) A description of the status of the performance

1532

expectations under subsection (9) and the disbursement conditions

1533

under subsection (10).

1534

1535

The corporation shall submit the report to the Governor, the

1536

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

1537

Representatives.

1538

(15) REPORT ON INNOVATION INCENTIVE PROGRAM

1539

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

1540

the activities and outcomes related to its oversight role for the

1541

Innovation Incentive Program for the preceding fiscal year. The

1542

report, at a minimum, must include:

1543

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

1544

recipient of the Innovation Incentive Program in achieving its

1545

agreement objectives, benchmarks, and performance expectations,

1546

and a discussion of all relevant factors related to its progress

1547

or lack thereof.

1548

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

1549

financial audits of the accounts and records of each grant

1550

recipient conducted by an independent certified public accountant

1551

in accordance with rules of the Auditor General.

1552

1553

improvements that may be undertaken by the Executive Office of

1554

the Governor.

1555

1556

The corporation shall submit the report to the Governor, the

1557

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

1558

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

1559

(16)(15) PROGRAM EVALUATION.--

1560

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

1561

Analysis and Government Accountability shall conduct a

1562

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

1563

Development and the corporation relating to the provisions of

1564

this section. The audit shall assess the implementation and

1565

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

1566

audit shall address:

1567

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

1568

Economic Development in disbursing funds appropriated under this

1569

section.

1570

2. Performance of the corporation in managing and enforcing

1571

the contract with the grantee.

1572

3. Compliance by the corporation with the provisions of

1573

this section and the provisions of the contract.

1574

4. Economic activity generated through funds disbursed

1575

under the contract.

1576

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

1577

Analysis and Government Accountability shall update the report

1578

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

1579

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

1580

report shall include a recommendation on whether the Legislature

1581

should retain the statutory authority for the corporation taking

1582

into account the corporation's oversight role for the Innovation

1583

Incentive Program.

1584

1585

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

1586

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

1587

Speaker of the House of Representatives. In completing the

1588

performance audits required under this subsection, the Office of

1589

Program Policy Analysis and Government Accountability shall

1590

maximize the use of reports submitted by the grantee to the

1591

Federal Government or to other organizations awarding research

1592

grants to the grantee.

1593

(17)(16) LIABILITY.--

1594

(a) The appropriation or disbursement of funds under this

1595

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

1596

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

1597

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

1598

of any such political subdivision.

1599

(b) The appropriation or disbursement of funds under this

1600

section does not subject the State of Florida, any political

1601

subdivision thereof, or the corporation to liability related to

1602

the research activities and research products of the grantee.

1603

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

1604

provisions contained in this act, if the grantee is prevented

1605

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

1606

its inability to occupy its permanent Florida facility within 2

1607

years after entering into the memorandum of agreement pursuant to

1608

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

1609

administrative or judicial proceedings, acts of God, labor

1610

disturbances, or other similar events beyond the control of the

1611

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

1612

which the grantee was delayed in commencing its occupancy of its

1613

permanent Florida facility. In no event shall the extension be

1614

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

1615

event, the Scripps Florida Funding Corporation shall continue to

1616

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

1617

current level of operations until the force majeure event ceases

1618

and the grantee is able to resume the contract schedule governing

1619

disbursement.

1620

Section 11. Paragraph (a) of subsection (4) of section

1621

288.9624, Florida Statutes, is amended to read:

1622

288.9624 Florida Opportunity Fund; creation; duties.--

1623

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

1624

variety of Florida-based, new technology companies and generating

1625

a return sufficient to continue reinvestment, the fund shall:

1626

(a)1. Except as otherwise provided in this section, invest

1627

directly only in seed and early stage venture capital funds that

1628

have experienced managers or management teams with demonstrated

1629

experience, expertise, and a successful history in the investment

1630

of venture capital funds. Investments must be focused, focusing

1631

on opportunities in this state. The fund may not make direct

1632

investments in individual businesses. While not precluded from

1633

investing in venture capital funds that have investments outside

1634

this state, the fund must require a venture capital fund to show

1635

a record of successful investment in this state, to be based in

1636

this state, or to have an office in this state staffed with a

1637

full-time, professional venture investment executive in order to

1638

be eligible for investment.

1639

2. In entering into partnerships with state universities

1640

that are designated as research universities having very high

1641

research activity by the 2005 Carnegie Classifications, invest

1642

directly in state-based seed or early stage venture capital

1643

funds. These investments shall be used to support companies that

1644

are developing the commercialization of a particular product or

1645

service, and that are operating from laboratory or office space

1646

on a university campus which has been constructed by a private

1647

developer who is providing a minimum match of $3 for every $1 of

1648

state funds for construction and investment. The fund may not

1649

make direct investments in individual businesses.

1650

Section 12. This act shall take effect upon becoming a law.

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