CS for SB 2778 Second Engrossed

20082778e2

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; creating s. 288.097, F.S.;

establishing Building Florida's Future Revolving Loan

Guarantee Program within the Office of Tourism, Trade, and

Economic Development; providing for the program to provide

loan guarantees or credit enhancements to units of local

government or to private entities for use in constructing

or modernizing facilities and infrastructure necessary to

attract or expand certain industries as part of an

economic-development project; providing requirements and

criteria for the office to consider in evaluating

requests; requiring Enterprise Florida, Inc., to assist

the office in its evaluation; requiring the Office of

Tourism, Trade, and Economic Development to adopt rules;

requiring that the office provide an annual report to the

Legislature regarding the program; providing an

appropriation; making the fund contingent on passage of a

companion bill; 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; modifying the definition of

rural county; application process to changes made by the

act; modifying the criteria for businesses to be eligible

for an economic stimulus exemption; extending the

application period; 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.; requiring

the Office of Tourism, Trade, and Economic Development to

adopt rules regarding incentives for the purchases of

goods and services in this state and to require the

grantee to submit data on activities and performance

regarding the purchases of goods and services in this

state; 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 Office of Tourism, Trade, and

Economic Development to adopt rules regarding incentives

for the purchases of goods and services in this state and

to require the grantee to submit data on activities and

performance regarding the purchase of goods and services

in this state; 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; amending s. 220.191, F.S.;

requiring applications for capital investment tax credits

to be reviewed under a specified provision; amending s.

288.063, F.S.; requiring that adoption of criteria by

which certain transportation projects are to be specified

and identified be done in accordance with a specified

provision; amending s. 288.065, F.S.; revising Rural

Community Development Revolving Loan Fund program

requirements; amending s. 288.0655, F.S.; authorizing the

Office of Tourism, Trade, and Economic Development to

award grants for a certain percentage of total

infrastructure project costs for certain catalyst site

funding applications; providing for waiver of the local

matching requirement; expanding eligible facilities for

authorized infrastructure projects; amending s. 288.0656,

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F.S.; providing legislative intent; revising and providing

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definitions; providing certain additional review and

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action requirements for REDI relating to rural

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communities; revising representation on REDI; deleting a

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limitation on characterization as a rural area of critical

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economic concern; authorizing rural areas of critical

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economic concern to designate certain catalyst projects

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for certain purposes; providing project requirements;

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requiring the initiative to assist local governments with

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certain comprehensive planning needs; providing procedures

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and requirements for such assistance; revising certain

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reporting requirements for REDI; amending s. 288.0657,

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F.S.; revising the definition for a rural community;

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providing two full-time equivalent position and an

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appropriation for the Office of Tourism, Trade, and

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Economic Development; amending ss. 257.193, 288.019,

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288.06561, and 627.6699, F.S.; conforming cross-

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references; providing an effective date.

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

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

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read:

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288.061 Economic development incentive application

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process.--

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

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for certifying economic development incentive applications under

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

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application and inform the applicant if its application is not

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complete within 10 business days. Once the application is deemed

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

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to evaluate the application and recommend approval or disapproval

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

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

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shall include in its evaluation a recommended grant award amount

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

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criteria.

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(2) Upon receipt of the evaluation and recommendation of

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

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Economic Development shall have 10 calendar days to notify

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

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director shall have 35 calendar days following the time the

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recommendation is received from Enterprise Florida, Inc., to

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review the application and issue a letter of certification to the

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applicant which approves or disapproves the application and

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includes justification, unless the applicant requests an

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

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

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

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

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Statutes, is amended to read:

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288.063 Contracts for transportation projects.--

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

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may adopt criteria by which transportation projects are to be

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reviewed and certified in accordance with s. 288.061 specified

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and identified. In approving transportation projects for funding,

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the office of Tourism, Trade, and Economic Development shall

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

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created or retained considering the amount of transportation

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funds requested; the average hourly rate of wages for jobs

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

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

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

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location of the project in an enterprise zone designated pursuant

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

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

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

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adoption of an economic element as part of its local

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

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office of Tourism, Trade, and Economic Development may contact

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any agency it deems appropriate for additional input regarding

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the approval of projects.

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

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Statutes, is amended to read:

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288.0655 Rural Infrastructure Fund.--

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

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

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and the Florida Fish and Wildlife Conservation Commission, as

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appropriate, shall review and certify applications pursuant to s.

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288.061. The review shall include an evaluation of and evaluate

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the economic benefit of the projects and their long-term

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viability. The office shall have final approval for any grant

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

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of receiving a completed application.

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Section 4. Section 288.097, Florida Statutes, is created to

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read:

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288.097 Building Florida's Future Revolving Loan Guarantee

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Program.--

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(1) There is created within the Office of Tourism, Trade,

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and Economic Development the Building Florida's Future Revolving

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Loan Guarantee Program. The purpose of the program is to provide

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loan guarantees or credit enhancements to units of local

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government or private entities seeking financing to construct or

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modernize facilities and infrastructure necessary to attract or

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expand targeted industries as part of an economic-development

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project. As used in this section, the term "targeted industries"

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means those industries referenced in s. 288.106(1)(o).

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(2) The program may provide loan guarantees or other credit

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enhancements to applicants seeking financing for the following

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purposes:

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(a) The acquisition of land, buildings, or fixed equipment;

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(b) Site preparation and the construction or reconstruction

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of buildings; or

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telecommunications, energy sources, or other water supply

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utilities.

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(3)(a) All moneys available within the program's trust

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fund, including investment earnings, are designated to carry out

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the purposes of this section.

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(b) Any funds within the trust fund which are not needed on

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an immediate basis for loan guarantees or credit enhancements may

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be invested pursuant to s. 215.49. The cost of administering the

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program may be paid from reasonable service fees that may be

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imposed upon applicants so as to enhance program perpetuity.

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(4) The office also shall consider, but need not be limited

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to, the following criteria in evaluating projects for assistance:

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(a) A demonstration that the project would create or

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enhance economic benefits.

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(b) The likelihood that the loan guarantee or credit

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enhancement would enable the project to proceed.

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public-private partnerships and attract private debt or equity

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investment.

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(d) The creditworthiness of the entity or entities applying

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to the program.

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(e) Whether the project is consistent, to the maximum

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extent feasible, with local government comprehensive plans.

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

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evaluating applications and determining whether an applicant

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meets the conditions of subsection (4).

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(6) The office shall adopt rules to administer the program

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which specify the application forms, deadlines for submitting

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applications, requirements for the selection process, and

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requirements for audits.

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(7) The office shall submit to the President of the Senate

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and the Speaker of the House of Representatives an annual report

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concerning activity within the program. The first report shall be

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submitted on January 5, 2009, and subsequent reports shall be

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submitted on January 5 every year thereafter, so long as the

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revolving fund exists.

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(8) The fund shall be created if CS/CS/SB Senate Bill 2712

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or similar legislation is adopted in the same legislative session

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or an extension thereof and becomes law.

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Section 5. For the 2008-2009 fiscal year, the sum of $20

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million is appropriated from the General Revenue Fund to the

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Building Florida's Future Revolving Trust Fund which shall be

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used by the Office of Tourism, Trade, and Economic Development

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for the purposes of administering this act. Notwithstanding the

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provisions of s. 216.301, Florida Statutes, the unexpended

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balance of this appropriation shall not revert.

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Section 6. Paragraph (f) of subsection (2), paragraphs (b),

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

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

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section 288.1045, Florida Statutes, are amended to read:

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288.1045 Qualified defense contractor tax refund program.--

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

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

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subsection (4), a qualified applicant may:

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1. Receive refunds from the account for corporate income

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taxes due and paid pursuant to chapter 220 by that business

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beginning with the first taxable year of the business after

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entering into the agreement.

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2. Receive funds from the General Revenue Fund and the

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Economic Development Trust Fund for the following taxes due and

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paid by that business the qualified applicant beginning with the

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applicant's first taxable year that begins after entering into

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the agreement:

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

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pursuant to chapter 212.

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2. Corporate income taxes paid pursuant to chapter 220.

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b.3. Intangible personal property taxes paid pursuant to

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chapter 199.

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

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

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201.

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

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on June 1, 1996.

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f.7. State communications services taxes administered under

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

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tax imposed under chapter 203 and administered under chapter 202

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or the local communications services tax authorized under s.

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202.19.

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However, a qualified applicant may not receive a tax refund

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

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

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

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subsequently adjusted by the application of any credit, refund,

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or exemption granted to the qualified applicant other than that

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provided in this section, the qualified applicant shall reimburse

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the Economic Development Trust Fund for the amount of such

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

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

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

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section. The addition of communications services taxes

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administered under chapter 202 is remedial in nature and

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

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tax refund payments to allow for tax refunds for communications

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services taxes paid by an eligible qualified defense contractor

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after October 1, 2001.

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(3) APPLICATION PROCESS; REQUIREMENTS; AGENCY

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DETERMINATION.--

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(b) Applications for certification based on the

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consolidation of a Department of Defense contract or a new

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Department of Defense contract must be submitted to the office as

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

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to, the following information:

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1. The applicant's federal employer identification number,

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

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notarized signature of an officer of the applicant.

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2. The permanent location of the manufacturing, assembling,

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fabricating, research, development, or design facility in this

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

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3. The Department of Defense contract numbers of the

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contract to be consolidated, the new Department of Defense

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

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Defense contract.

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

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

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expected to expire.

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5. The commencement date for project operations under the

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contract in this state.

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

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

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average wage of such jobs.

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7. The total number of full-time equivalent employees

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employed by the applicant in this state.

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

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from Department of Defense contracts during the 5 taxable years

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immediately preceding the date the application is submitted.

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

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be retained by the project.

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

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each fiscal year.

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10.11. A brief statement concerning the applicant's need

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

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applicant.

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11.12. A resolution adopted by the governing board county

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commissioners of the county or municipality in which the project

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will be located, which recommends that the applicant be approved

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as a qualified applicant, and which indicates that the necessary

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commitments of local financial support for the applicant exist.

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Prior to the adoption of the resolution, the county commission

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may review the proposed public or private sources of such support

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and determine whether the proposed sources of local financial

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

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located in a county designated by the Rural Economic Development

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Initiative, a resolution adopted by the county commissioners of

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such county requesting that the applicant's project be exempt

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from the local financial support requirement.

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12.13. Any additional information requested by the office.

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of defense production jobs to nondefense production jobs must be

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submitted to the office as prescribed by the office and must

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

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1. The applicant's federal employer identification number,

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

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notarized signature of an officer of the applicant.

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2. The permanent location of the manufacturing, assembling,

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fabricating, research, development, or design facility in this

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

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3. The Department of Defense contract numbers of the

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contract under which the defense production jobs will be

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converted to nondefense production jobs.

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

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

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canceled.

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5. The commencement date for the nondefense production

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operations in this state.

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

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included in the nondefense production project as of December 31

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of each year and the average wage of such jobs.

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7. The total number of full-time equivalent employees

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employed by the applicant in this state.

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

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from Department of Defense contracts during the 5 taxable years

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immediately preceding the date the application is submitted.

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

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be retained by the project.

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

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each fiscal year.

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10.11. A brief statement concerning the applicant's need

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

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applicant.

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11.12. A resolution adopted by the governing board county

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commissioners of the county or municipality in which the project

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will be located, which recommends that the applicant be approved

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as a qualified applicant, and which indicates that the necessary

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commitments of local financial support for the applicant exist.

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Prior to the adoption of the resolution, the county commission

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may review the proposed public or private sources of such support

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and determine whether the proposed sources of local financial

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

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located in a county designated by the Rural Economic Development

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Initiative, a resolution adopted by the county commissioners of

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such county requesting that the applicant's project be exempt

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from the local financial support requirement.

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12.13. Any additional information requested by the office.

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(d) Applications for certification based on a contract for

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

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

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limited to, the following information:

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1. The applicant's Florida sales tax registration number

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

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2. The permanent location of the manufacturing, assembling,

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fabricating, research, development, or design facility in this

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

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3. The business entity holding a valid Department of

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Defense contract or branch of the Armed Forces of the United

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States that previously occupied the facility, and the date such

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entity last occupied the facility.

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

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alternative proof as may be prescribed by the office that the

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

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

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

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to expire or is expected to expire.

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6. The commencement date for project operations under the

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contract in this state.

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

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

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average wage of such jobs.

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8. The total number of full-time equivalent employees

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employed by the applicant in this state.

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

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be retained by the project.

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

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each fiscal year.

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10.11. A brief statement concerning the applicant's need

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

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applicant.

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11.12. A resolution adopted by the governing board county

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commissioners of the county or municipality in which the project

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will be located, which recommends that the applicant be approved

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as a qualified applicant, and which indicates that the necessary

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commitments of local financial support for the applicant exist.

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Prior to the adoption of the resolution, the county commission

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may review the proposed public or private sources of such support

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and determine whether the proposed sources of local financial

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

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located in a county designated by the Rural Economic Development

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Initiative, a resolution adopted by the county commissioners of

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such county requesting that the applicant's project be exempt

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from the local financial support requirement.

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12.13. Any additional information requested by the office.

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(g) Applications shall be reviewed and certified pursuant

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

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written agreement with the qualified applicant pursuant to

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

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evaluation on each application meeting the requirements of

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

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

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a complete application. The office shall notify each applicant

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

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

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specifically address each of the factors specified in paragraph

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

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minimum requirements established in paragraph (e). The office

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shall include in its report projections of the tax refunds the

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applicant would be eligible to receive in each fiscal year based

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on the creation and maintenance of the net new Florida jobs

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

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

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fiscal year.

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

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and evaluation, the director shall issue a letter of

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certification which either approves or disapproves an

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application. The decision must be in writing and provide the

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justifications for either approval or disapproval. If

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appropriate, the director shall enter into a written agreement

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with the qualified applicant pursuant to subsection (4).

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(5) ANNUAL CLAIM FOR REFUND FROM A QUALIFIED DEFENSE

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CONTRACTOR.--

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applicant unless local financial support has been paid to the

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Economic Development Trust Fund for that refund. If the local

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financial support is less than 20 percent of the approved tax

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

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not exceed 5 times the local financial support received. Funding

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from local sources includes tax abatement under s. 196.1995 or

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the appraised market value of municipal or county land, including

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any improvements or structures conveyed or provided at a discount

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through a sale of lease to that provided to a qualified

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

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

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

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value of any improvements or structures, and the limitations in

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

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

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granted, including any improvements or structures. A report

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listing all sources of the local financial support shall be

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

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Economic Development Trust Fund.

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(6) ADMINISTRATION.--

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

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complete and detailed report to the Governor, the President of

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

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all tax refunds paid under this section, including analyses of

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benefits and costs, types of projects supported, employment and

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investment created, geographic distribution of tax refunds

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granted, and minority business participation. The report must

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indicate whether the moneys appropriated by the Legislature to

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the qualified applicant tax refund program were expended in a

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prudent, fiducially sound manner.

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

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

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than the payment of tax refunds authorized by this section.

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Section 7. Paragraph (r) of subsection (1), subsection (3),

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and paragraph (b) of subsection (4) of section 288.106, Florida

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Statutes, are amended to read:

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288.106 Tax refund program for qualified target industry

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businesses.--

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

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(r) "Rural county" means a county with a population of

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75,000 or fewer or a county with a population of 120,000 100,000

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or fewer which is contiguous to a county with a population of

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75,000 or fewer.

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(4) TAX REFUND AGREEMENT.--

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(b) Compliance with the terms and conditions of the

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agreement is a condition precedent for the receipt of a tax

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refund each year. The failure to comply with the terms and

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conditions of the tax refund agreement results in the loss of

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eligibility for receipt of all tax refunds previously authorized

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under this section and the revocation by the director of the

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certification of the business entity as a qualified target

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industry business, unless the business is eligible to receive and

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elects to accept a prorated refund under paragraph (5)(d) or the

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office grants the business an economic-stimulus exemption.

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1. A qualified target industry business may submit, in

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writing, a request to the office for an economic-stimulus

530

exemption. The request must provide quantitative evidence

531

demonstrating how negative economic conditions in the business's

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industry, the effects of the impact of a named hurricane or

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tropical storm, or specific acts of terrorism affecting the

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qualified target industry business have prevented the business

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from complying with the terms and conditions of its tax refund

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agreement.

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2. Upon receipt of a request under subparagraph 1., the

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director shall have 45 days to notify the requesting business, in

539

writing, if its exemption has been granted or denied. In

540

determining if an exemption should be granted, the director shall

541

consider the extent to which negative economic conditions in the

542

requesting business's industry, the effects of the impact of a

543

named hurricane or tropical storm, or specific acts of terrorism

544

affecting the qualified target industry business have prevented

545

the business from complying with the terms and conditions of its

546

tax refund agreement. The office shall consider current Florida

547

employment statistics by industry, including whether the

548

business's industry had substantial job loss during the prior

549

year, when determining whether an economic stimulus exemption

550

shall be granted.

551

3. As a condition for receiving a prorated refund under

552

paragraph (5)(d) or an economic-stimulus exemption under this

553

paragraph, a qualified target industry business must agree to

554

renegotiate its tax refund agreement with the office to, at a

555

minimum, ensure that the terms of the agreement comply with

556

current law and office procedures governing application for and

557

award of tax refunds. Upon approving the award of a prorated

558

refund or granting an economic-stimulus exemption, the office

559

shall renegotiate the tax refund agreement with the business as

560

required by this subparagraph. When amending the agreement of a

561

business receiving an economic-stimulus exemption, the office may

562

extend the duration of the agreement for a period not to exceed 2

563

years.

564

4. A qualified target industry business may submit a

565

request for an economic-stimulus exemption to the office in lieu

566

of any tax refund claim scheduled to be submitted after January

567

1, 2008 2005, but before July 1, 2009 2006.

568

5. A qualified target industry business that receives an

569

economic-stimulus exemption may not receive a tax refund for the

570

period covered by the exemption.

571

(3) APPLICATION AND APPROVAL PROCESS.--

572

(a) To apply for certification as a qualified target

573

industry business under this section, the business must file an

574

application with the office before the business has made the

575

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

576

business had made the decision to expand an existing business in

577

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

578

limited to, the following information:

579

1. The applicant's federal employer identification number

580

and the applicant's state sales tax registration number.

581

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

582

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

583

3. A description of the type of business activity or

584

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

585

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

586

project.

587

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

588

jobs at the qualified target industry business as of December 31

589

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

590

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

591

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

592

for those jobs must be separately stated for each type of

593

business activity or product.

594

5. The total number of full-time equivalent employees

595

employed by the applicant in this state.

596

6. The anticipated commencement date of the project.

597

7. A brief statement concerning the role that the tax

598

refunds requested will play in the decision of the applicant to

599

locate or expand in this state.

600

8. An estimate of the proportion of the sales resulting

601

from the project that will be made outside this state.

602

9. A resolution adopted by the governing board of the

603

county or municipality in which the project will be located,

604

which resolution recommends that certain types of businesses be

605

approved as a qualified target industry business and states that

606

the commitments of local financial support necessary for the

607

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

608

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

609

authorized local economic development agency that endorses the

610

proposed target industry project and pledges that sources of

611

local financial support for such project exist. For the purposes

612

of making pledges of local financial support under this

613

subsection, the authorized local economic development agency must

614

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

615

resolution by the local governing authority.

616

10. Any additional information requested by the office.

617

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

618

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

619

following to the satisfaction of the office:

620

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

621

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

622

average wage equaling at least 115 percent of the average private

623

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

624

the statewide private sector average wage. In determining the

625

average annual wage, the office shall include only new proposed

626

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

627

calculation. The office may waive the this average wage

628

requirement at the request of the local governing body

629

recommending the project and Enterprise Florida, Inc. The wage

630

requirement may only be waived for a project located in a

631

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

632

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

633

individual project or the specific circumstances in the community

634

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

635

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

636

recommendation, it must be transmitted in writing and the

637

specific justification for the waiver recommendation must be

638

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

639

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

640

the waiver must be explained.

641

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

642

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

643

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

644

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

645

business. Notwithstanding the definition of the term "expansion

646

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

647

the local governing body recommending the project and Enterprise

648

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

649

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

650

expansion of a business resulting in a net increase in employment

651

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

652

individual project or the specific circumstances in the community

653

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

654

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

655

it must be transmitted in writing and the specific justification

656

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

657

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

658

writing and the reason for granting the request must be

659

explained.

660

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

661

project is within an industry or industries that have been

662

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

663

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

664

and that produce a higher standard of living for residents

665

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

666

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

667

economic progress. The director must approve requests to waive

668

the wage requirement for brownfield areas designated under s.

669

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

670

public interest.

671

672

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

673

eligibility. The office shall review and evaluate each

674

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

675

1. Expected contributions to the state strategic economic

676

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

677

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

678

on the state economy.

679

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

680

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

681

each job created.

682

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

683

applicant in this state.

684

4. The local commitment and support for the project.

685

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

686

into account the unemployment rate for the county where the

687

project will be located.

688

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

689

section on the viability of the project and the probability that

690

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

691

are granted to the applicant, taking into account the expected

692

long-term commitment of the applicant to economic growth and

693

employment in this state.

694

7. The expected long-term commitment to this state

695

resulting from the project.

696

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

697

or other states, including whether such business has been

698

subjected to criminal or civil fines and penalties. Nothing in

699

This subparagraph does not shall require the disclosure of

700

confidential information.

701

(d) Applications shall be reviewed and certified pursuant

702

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

703

evaluation concerning each application meeting the requirements

704

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

705

receipt of a complete application. The office shall notify each

706

target industry business when its application is complete, and of

707

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

708

the director, the office shall specifically address each of the

709

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

710

assessment with respect to the minimum requirements established

711

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

712

projections of the tax refunds the business would be eligible to

713

receive in each fiscal year based on the creation and maintenance

714

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

715

December 31 of the preceding state fiscal year.

716

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

717

and evaluation, the director shall issue a letter of

718

certification that either approves or disapproves the application

719

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

720

and must provide the justifications for approval or disapproval.

721

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

722

agreement with the qualified target industry business pursuant to

723

subsection (4).

724

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

725

business as a qualified target industry business if the value of

726

tax refunds to be included in that letter of certification

727

exceeds the available amount of authority to certify new

728

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

729

commitments of local financial support represent less than 20

730

percent of the eligible tax refund payments, or to otherwise

731

preserve the viability and fiscal integrity of the program, the

732

director may certify a qualified target industry business to

733

receive tax refund payments of less than the allowable amounts

734

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

735

approves an application must specify the maximum amount of tax

736

refund that will be available to the qualified industry business

737

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

738

be available to the business for all fiscal years.

739

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

740

presumption that an applicant shall will receive any tax refunds

741

under this section. However, the office may issue nonbinding

742

opinion letters, upon the request of prospective applicants, as

743

to the applicants' eligibility and the potential amount of

744

refunds.

745

Section 8. Paragraph (f) of subsection (4) of section

746

288.107, Florida Statutes, is amended to read:

747

288.107 Brownfield redevelopment bonus refunds.--

748

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

749

(f) Applications shall be reviewed and certified pursuant

750

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

751

under s. 288.106 or other similar application forms for other

752

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

753

that the proposed project will be located in a brownfield and

754

determine, with the assistance of the Department of Environmental

755

Protection, that the project location is within a brownfield as

756

provided in this act.

757

Section 9. Paragraphs (b), (c), and (d) of subsection (5)

758

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

759

are amended to read:

760

288.108 High-impact business.--

761

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

762

(b) Applications shall be reviewed and certified pursuant

763

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

764

submitted application and inform the applicant business whether

765

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

766

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

767

10 working days within which to evaluate the application and

768

recommend approval or disapproval of the application to the

769

director. In recommending an applicant business for approval,

770

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

771

amount in its evaluation forwarded to the office.

772

773

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

774

enter a final order that either approves or disapproves an

775

applicant business as a qualified high-impact business facility,

776

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

777

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

778

business facility performance grant award, the performance

779

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

780

for payment of the performance grant.

781

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

782

shall enter into a performance grant agreement setting forth the

783

conditions for payment of the qualified high-impact business

784

performance grant. The agreement shall include the total amount

785

of the qualified high-impact business facility performance grant

786

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

787

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

788

methodology for determining if the conditions have been met, and

789

the schedule of performance grant payments.

790

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

791

issue a complete and detailed report of all designated high-

792

impact sectors, all applications received and their disposition,

793

all final orders issued, and all payments made, including

794

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

795

employment and investments created. The report shall be submitted

796

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

797

the House of Representatives.

798

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

799

administer carry out the provisions of this section.

800

Section 10. Paragraph (a) of subsection (3) of section

801

288.1088, Florida Statutes, is amended to read:

802

288.1088 Quick Action Closing Fund.--

803

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

804

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

805

project consistent with the criteria in subsection (2).

806

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

807

Tourism, Trade, and Economic Development, may waive these

808

criteria based on extraordinary circumstances if the project

809

would significantly benefit the local or regional economy.

810

Enterprise Florida, Inc., shall evaluate individual proposals for

811

high-impact business facilities and forward recommendations

812

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

813

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

814

Development. The Such evaluation and recommendation must include,

815

but need not be limited to:

816

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

817

its operations, and the associated product or service associated

818

with the facility.

819

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

820

created by the facility and the total estimated average annual

821

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

822

infrastructure, the types of business activities and jobs

823

stimulated by the investment.

824

3. The cumulative amount of investment to be dedicated to

825

the facility within a specified period.

826

4. A statement of any special impacts the facility is

827

expected to stimulate in a particular business sector in the

828

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

829

community colleges.

830

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

831

play in the decision of the applicant business to locate or

832

expand in this state or for the private investor to provide

833

critical rural infrastructure.

834

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

835

submitting a proposal. The report must include:

836

a. A financial analysis of the company, including an

837

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

838

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

839

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

840

debt-to-equity ratio;

841

b. The historical market performance of the company;

842

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

843

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

844

statement and the related auditor's management letter; and

845

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

846

to the internal and management controls of the company.

847

Section 11. Section 288.1089, Florida Statutes, is amended

848

to read:

849

288.1089 Innovation Incentive Program.--

850

(1) The Innovation Incentive Program is created within the

851

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

852

sufficient resources are available to allow the state to respond

853

expeditiously to extraordinary economic opportunities and to

854

compete effectively for high-value research and development and

855

innovation business projects.

856

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

857

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

858

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

859

sector wages in the county or in the standard metropolitan area

860

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

861

Workforce Innovation.

862

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

863

brownfield area pursuant to s. 376.80.

864

865

Corporation.

866

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

867

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

868

220.191.

869

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

870

Tourism, Trade, and Economic Development.

871

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

872

enterprise zone pursuant to s. 290.0065.

873

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

874

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

875

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

876

the growth of an existing or emerging technology cluster or will

877

significantly impact the regional economy in which it is to

878

expand or locate.

879

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

880

term is consistent with terms used by the Agency for Workforce

881

Innovation and the United States Department of Labor for purposes

882

of unemployment compensation tax administration and employment

883

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

884

term does not include temporary construction jobs.

885

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

886

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

887

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

888

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

889

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

890

equipment conveyed or provided at a discount to the applicant.

891

Complete documentation of a match payment or other conveyance

892

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

893

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

894

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

895

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

896

directly or indirectly, state funds appropriated from the General

897

Revenue Fund or any state trust fund, excluding tax revenues

898

shared with local governments pursuant to law.

899

(k) "Naming opportunities" means charitable donations from

900

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

901

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

902

person, living or dead, or for any entity.

903

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

904

the cost of obtaining, maintaining, and enforcing related patent

905

and intellectual property rights, both foreign and domestic.

906

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

907

Economic Development.

908

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

909

state by an innovation business or research and development

910

applicant approved for an award pursuant to this section.

911

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

912

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

913

development, and testing of prototypes or processes of new or

914

improved products. Research and development does not include

915

market research, routine consumer product testing, sales

916

research, research in the social sciences or psychology,

917

nontechnological activities, or technical services.

918

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

919

that is predominately engaged in research and development

920

activities. For purposes of this paragraph, the term

921

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

922

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

923

rural county as defined in s. 288.106.

924

(3) To be eligible for consideration for an innovation

925

incentive award, an innovation business or research and

926

development entity must submit a written application to

927

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

928

operations in this state or expand an existing operation in this

929

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

930

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

931

unemployment account number, and state sales tax registration

932

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

933

application, they must be submitted to the office in writing

934

prior to the disbursement of any payments under this section.

935

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

936

located or is to be located.

937

938

product, or research and development undertaken by the applicant,

939

including six-digit North American Industry Classification System

940

codes for all activities included in the project.

941

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

942

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

943

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

944

state the applicant anticipates having created as of December 31

945

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

946

jobs; and the average annual wage of nonmanagement, nonresearch

947

jobs.

948

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

949

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

950

(h) The anticipated commencement date of the project.

951

(i) A detailed explanation of why the innovation incentive

952

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

953

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

954

expand in this state.

955

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

956

revenues resulting from the project that will be generated

957

outside this state.

958

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

959

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

960

of Enterprise Florida, Inc., and the office:

961

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

962

annual average wage equaling at least 130 percent of the average

963

private sector wage. The office may waive this average wage

964

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

965

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

966

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

967

specific circumstances in the community in relationship to the

968

project warrant such action. A recommendation for waiver by

969

Enterprise Florida, Inc., must include a specific justification

970

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

971

the director elects to waive the wage requirement, the waiver

972

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

973

must be explained.

974

(b) A research and development project must:

975

1. Serve as a catalyst for an emerging or evolving

976

technology cluster.

977

2. Demonstrate a plan for significant higher education

978

collaboration.

979

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

980

investment within a 20-year period.

981

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

982

community. The match requirement may be reduced or waived in

983

rural areas of critical economic concern or reduced in rural

984

areas, brownfield areas, and enterprise zones.

985

986

than a research and development project, must:

987

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

988

jobs at the business; or

989

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

990

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

991

an enterprise zone.

992

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

993

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

994

or a designated sector under s. 288.108.

995

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

996

within a 5-year period; or

997

b. Have a cumulative investment that exceeds $250 million

998

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

999

area, brownfield area, or an enterprise zone.

1000

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

1001

community. The match requirement may be reduced or waived in

1002

rural areas of critical economic concern or reduced in rural

1003

areas, brownfield areas, and enterprise zones.

1004

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

1005

innovation incentive awards and transmit recommendations for

1006

awards to the office. Such evaluation and recommendation must

1007

include, but need not be limited to:

1008

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

1009

and the associated product, service, or research and development

1010

associated with the project.

1011

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

1012

1013

created by the project, the total estimated average annual wages

1014

of such jobs, the average annual wages of nonmanagement and

1015

nonresearch jobs, and the types of business activities and jobs

1016

likely to be stimulated by the project.

1017

(d) The cumulative investment to be dedicated to the

1018

project within 5 years and the total investment expected in the

1019

project if more than 5 years.

1020

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

1021

and state economies relative to investment.

1022

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

1023

expected to stimulate in a particular business sector in the

1024

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

1025

community colleges.

1026

(g) A statement of any anticipated or proposed

1027

relationships with state universities.

1028

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

1029

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

1030

state.

1031

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

1032

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

1033

state.

1034

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

1035

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

1036

the applicant's location or expansion, taking into consideration

1037

local resources and abilities.

1038

(k) A recommendation for specific performance criteria the

1039

applicant would be expected to achieve in order to receive

1040

payments from the fund and penalties or sanctions for failure to

1041

meet or maintain performance conditions.

1042

(l) For a research and development facility project:

1043

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

1044

potential to serve as catalyst for an emerging or evolving

1045

cluster.

1046

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

1047

could have a long-term collaborative research and development

1048

relationship with one or more universities or community colleges

1049

in this state.

1050

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

1051

project on established clusters or targeted industry sectors.

1052

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

1053

diversity and resiliency of the innovation economy of this state.

1054

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

1055

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

1056

distressed urban areas, and enterprise zones.

1057

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

1058

office may negotiate the proposed amount of an award for any

1059

applicant meeting the requirements of this section. In

1060

negotiating such award, the office shall consider the amount of

1061

the incentive needed to cause the applicant to locate or expand

1062

in this state in conjunction with other relevant applicant impact

1063

and cost information and analysis as described in this section.

1064

Particular emphasis shall be given to the potential for the

1065

project to stimulate additional private investment and high-

1066

quality employment opportunities in the area.

1067

(7) Upon receipt of the evaluation and recommendation from

1068

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

1069

Governor the approval or disapproval of an award. In recommending

1070

approval of an award, the director shall include proposed

1071

performance conditions that the applicant must meet in order to

1072

obtain incentive funds and any other conditions that must be met

1073

before the receipt of any incentive funds. The Governor shall

1074

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

1075

House of Representatives before giving approval for an award.

1076

Upon review and approval of an award by the Legislative Budget

1077

Commission, the Executive Office of the Governor shall release

1078

the funds pursuant to the legislative consultation and review

1079

requirements set forth in s. 216.177.

1080

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

1081

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

1082

met, the director shall issue a letter certifying the applicant

1083

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

1084

applicant shall enter into an agreement that sets forth the

1085

conditions for payment of incentives. The agreement must include

1086

at a minimum:

1087

(a) The total amount of funds awarded.;

1088

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

1089

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

1090

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

1091

cumulative investment. Where applicable, the performance

1092

conditions must be at least at the levels specified in this

1093

section for an applicant to qualify for consideration for an

1094

Innovation Incentive Program grant award.;

1095

1096

measure of enhanced capability.;

1097

(d) The methodology for validating performance.;

1098

(e) The schedule of payments.; and

1099

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

1100

shall be required to reinvest between 10 percent and 15 percent

1101

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

1102

companies and the revenues from the sale of stock it receives

1103

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

1104

and other patentable discoveries conceived or reduced to practice

1105

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

1106

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

1107

during the 20 years following the effective date of its agreement

1108

with the state. Each award recipient also shall reinvest between

1109

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

1110

naming opportunities associated with any facility it builds in

1111

this state.

1112

2. Reinvestment payments under this paragraph shall

1113

commence no later than 6 months after the grant recipient has

1114

received the final disbursement under the contract and continue

1115

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

1116

been paid. Reinvestment payments shall be remitted to the state

1117

for deposit in the Biomedical Research Trust Fund for companies

1118

that specialize in biomedicine or life sciences, or in the

1119

Economic Development Trust Fund for companies that specialize in

1120

fields other than biomedicine or the life sciences, except that

1121

10 percent of each reinvestment payment shall be deposited in the

1122

Building Florida's Future Revolving Loan Guarantee Fund for its

1123

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

1124

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

1125

be deposited in their successor trust funds, as determined by

1126

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

1127

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

1128

this paragraph and report on any trades or activity concerning

1129

such stock. Each award recipient's reinvestment obligations

1130

survives the expiration or termination of its agreement with the

1131

state.

1132

(g) Sanctions for failure to meet performance conditions,

1133

including any clawback provisions.

1134

(h) Requirements for the establishment of internship

1135

programs or other learning opportunities for educators and

1136

secondary, postsecondary, graduate, and doctoral students.

1137

(i) Requirements for each award recipient to submit

1138

quarterly reports and annual reports related to activities and

1139

performance to the office and to Enterprise Florida, Inc.

1140

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

1141

of funds disbursed under this section.

1142

(k) A process for amending the agreement.

1143

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

1144

validating the performance of an innovation business or research

1145

and development facility that has received an award.

1146

(10) At the conclusion of the innovation incentive award

1147

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

1148

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

1149

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

1150

the Speaker of the House of Representatives.

1151

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

1152

Florida, Inc., shall develop business ethics standards developed

1153

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

1154

industry practices which shall be applicable to all award

1155

recipients. The standards shall address ethical duties of

1156

business enterprises, fiduciary responsibilities of management,

1157

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

1158

Inc., may collaborate with the State University System in

1159

reviewing and evaluating appropriate business ethics standards.

1160

Such standards shall be provided to the Governor, the President

1161

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

1162

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

1163

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

1164

business ethics standards developed pursuant to this section.

1165

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

1166

shall adopt rules regarding incentives for the making of

1167

purchases of goods and services from vendors in this state,

1168

including requiring the grantee to maintain a policy of making

1169

purchases from distributors and vendors located in enterprise

1170

zones as defined in s. 290.0065, and requiring the grantee to

1171

establish and maintain policies to promote supplier diversity of

1172

Florida entities using the guidelines developed by the Office of

1173

Supplier Diversity under s. 287.09451.

1174

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

1175

shall adopt rules requiring the grantee to submit data on

1176

activities and performance during each fiscal year regarding the

1177

purchases of goods and services from vendors in this state,

1178

including the use of distributors and vendors located in

1179

enterprise zones as defined in s. 290.0065, and the fulfillment

1180

of policies to promote supplier diversity of Florida entities

1181

using the guidelines developed by the Office of Supplier

1182

Diversity under s. 287.09451.

1183

Section 12. Section 288.955, Florida Statutes, is amended

1184

to read:

1185

288.955 Scripps Florida Funding Corporation.--

1186

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

1187

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

1188

Tourism, Trade, and Economic Development and recipients of

1189

Innovation Incentive Program grants pursuant to s. 288.1089.

1190

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

1191

corporation and the grantee under this section.

1192

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

1193

Corporation created under this section.

1194

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

1195

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

1196

subsidiary, affiliate, or entity formed by The Scripps Research

1197

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

1198

institution and campus in this state.

1199

(2) CREATION.--

1200

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

1201

the Scripps Florida Funding Corporation, which shall be

1202

registered, incorporated, organized, and operated under chapter

1203

617.

1204

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

1205

government. However, the corporation is subject to the provisions

1206

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

1207

relating to public meetings and records, and the provisions of

1208

chapter 286 relating to public meetings and records.

1209

1210

office in this state and appoint a registered agent.

1211

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

1212

necessary to the proper execution of its powers and duties within

1213

the funds appropriated to implement this section and shall

1214

require that all officers, directors, and employees of the

1215

corporation comply with the code of ethics for public officers

1216

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

1217

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

1218

$200,000 per year thereafter for staffing and necessary

1219

administrative expenditures, including, but not limited to,

1220

travel and per diem and audit expenditures, using funds

1221

appropriated to implement this section.

1222

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

1223

shall provide administrative support to the corporation as

1224

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

1225

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

1226

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

1227

of the corporation under any contract to which the corporation is

1228

then a party and under law.

1229

(3) PURPOSES PURPOSE.--

1230

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

1231

invest, administer, and disburse funds appropriated by the

1232

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

1233

the-art biomedical research institution and campus in this state

1234

by The Scripps Research Institute. The corporation shall

1235

safeguard the state's commitment of financial support by ensuring

1236

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

1237

meets its contractual obligations. In this manner, the

1238

corporation shall facilitate and oversee the state goal and

1239

public purpose of providing financial support for the institution

1240

and campus in order to expand the amount and prominence of

1241

biomedical research conducted in this state, provide an

1242

inducement for high-technology businesses to locate in this

1243

state, create educational opportunities through access to and

1244

partnerships with the institution, and promote improved health

1245

care through the scientific outcomes of the institution.

1246

(b) The corporation also shall serve in an oversight

1247

capacity for the Innovation Incentive Program created in s.

1248

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

1249

partnership with the Office of Tourism, Trade, and Economic

1250

Development and Enterprise Florida, Inc., in reviewing the

1251

performance and progress of grant recipients of the Innovation

1252

Incentive Program.

1253

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

1254

by a board of directors.

1255

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

1256

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

1257

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

1258

of Representatives shall appoint three. The director of the

1259

Office of Tourism, Trade, and Economic Development or the

1260

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

1261

member of the board of directors.

1262

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

1263

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

1264

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

1265

Representatives each shall appoint one member for a term of 1

1266

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

1267

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

1268

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

1269

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

1270

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

1271

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

1272

less remaining on the term may be reappointed for an additional

1273

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

1274

the Speaker of the House of Representatives shall make their

1275

initial appointments to the board by November 15, 2003.

1276

1277

Speaker of the House of Representatives, respectively, shall fill

1278

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

1279

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

1280

expired. A vacancy that occurs before the scheduled expiration of

1281

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

1282

unexpired term.

1283

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

1284

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

1285

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

1286

of financial interests under s. 112.3145.

1287

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

1288

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

1289

franchise, privilege, or other benefit granted by The Scripps

1290

Research Institute, or any of its affiliate organizations, or

1291

with any grant recipients of the Innovation Incentive Program

1292

within 5 years before appointment. A person appointed to the

1293

board of directors must agree to refrain from having any direct

1294

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

1295

granted by The Scripps Research Institute, or any of its

1296

affiliate organizations, or with any grant recipients of the

1297

Innovation Incentive Program during the term of his or her

1298

appointment and for 5 years after the termination of such

1299

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

1300

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

1301

appointment to the board of directors in violation of this

1302

paragraph or to accept a direct interest in any contract,

1303

franchise, privilege, or other benefit granted by the institution

1304

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

1305

service on the board.

1306

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

1307

without compensation, but shall receive travel and per diem

1308

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

1309

his or her duties.

1310

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

1311

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

1312

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

1313

that funds provided in furtherance of this section are disbursed

1314

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

1315

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

1316

Representatives, according to which officer appointed the member,

1317

may remove a member for malfeasance, misfeasance, neglect of

1318

duty, incompetence, permanent inability to perform official

1319

duties, unexcused absence from three consecutive meetings of the

1320

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

1321

misdemeanor involving theft or a crime of dishonesty, or pleading

1322

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

1323

(5) ORGANIZATION; MEETINGS.--

1324

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

1325

chairperson and a vice chairperson from among the board's

1326

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

1327

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

1328

chairperson prior to the expiration of his or her term as

1329

chairperson or vice chairperson. His or her successor shall be

1330

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

1331

vice chairperson's term.

1332

2. The chairperson is responsible to ensure that records

1333

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

1334

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

1335

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

1336

seal of the corporation.

1337

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

1338

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

1339

but no less than three times per calendar year.

1340

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

1341

directors constitutes a quorum. Except as otherwise provided in

1342

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

1343

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

1344

present. Members may not vote by proxy.

1345

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

1346

the board by telephone or videoconference through which each

1347

member may hear every other member.

1348

1349

matters related to The Scripps Research Institute and the

1350

Innovation Incentive Program.

1351

(6) POWERS AND DUTIES.--

1352

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

1353

administer, and disburse funds appropriated by the Legislature in

1354

support of The Scripps Research Institute this section and to

1355

disburse any income generated from the investment of these funds

1356

consistent with the purpose and provisions of this section. In

1357

addition to the powers and duties prescribed in chapter 617 and

1358

the articles and bylaws adopted under that chapter, the

1359

corporation:

1360

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

1361

other functions that are necessary to carry out the provisions of

1362

this section related to The Scripps Research Institute.

1363

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

1364

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

1365

security agreements to secure the performance of obligations of

1366

the grantee under the contract.

1367

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

1368

convenient to carry out the powers expressly granted in this

1369

section and in the a contract entered into between the

1370

corporation and the grantee.

1371

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

1372

state, including any necessary administrative expenditures

1373

consistent with its powers.

1374

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

1375

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

1376

against any personal liability or accountability.

1377

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

1378

this section and a contract entered into between the corporation

1379

and the grantee.

1380

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

1381

documentation provided by the grantee to ensure compliance with

1382

the provisions of this section and provisions of the contract.

1383

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

1384

subsection (14).

1385

(b) The corporation also is directed to:

1386

1. Review the business plans, quarterly reports, annual

1387

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

1388

from the Innovation Incentive Program pursuant to s. 288.1089.

1389

2. Invite all Innovation Incentive Program grant recipients

1390

to appear at its meetings to present progress reports on their

1391

activities.

1392

3. Prepare an annual report as prescribed in subsection

1393

(15).

1394

1395

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

1396

corporation against any personal liability or accountability.

1397

(d) The corporation may otherwise perform all acts and

1398

things necessary or convenient to carry out the powers expressly

1399

granted in this section.

1400

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

1401

an agreement with the State Board of Administration under which

1402

funds received by the corporation from the Office of Tourism,

1403

Trade, and Economic Development which are not disbursed to the

1404

grantee shall be invested by the State Board of Administration on

1405

behalf of the corporation. Funds shall be invested in suitable

1406

instruments authorized under s. 215.47 and specified in

1407

investment guidelines established and agreed to by the State

1408

Board of Administration and the corporation.

1409

(8) CONTRACT.--

1410

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

1411

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

1412

shall negotiate and execute a contract with the grantee for a

1413

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

1414

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

1415

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

1416

The corporation may not execute the contract unless the contract

1417

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

1418

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

1419

execution of the contract, The Scripps Research Institute must

1420

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

1421

and the Speaker of the House of Representatives an organizational

1422

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

1423

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

1424

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

1425

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

1426

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

1427

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

1428

1. Specifying the procedures and schedules that govern the

1429

disbursement of funds under this section and specifying the

1430

conditions or deliverables that the grantee must satisfy before

1431

the release of each disbursement.

1432

2. Requiring the grantee to submit to the corporation a

1433

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

1434

3. Prohibiting The Scripps Research Institute or the

1435

grantee from establishing other biomedical science or research

1436

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

1437

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

1438

in this subparagraph shall prohibit the grantee from establishing

1439

or engaging in normal collaborative activities with other

1440

organizations.

1441

4. Governing the ownership of or security interests in real

1442

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

1443

research equipment, obtained through the financial support of

1444

state or local government, including a provision that in the

1445

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

1446

ceases operations in this state, such property purchased with

1447

state funds shall revert to the state and such property purchased

1448

with local funds shall revert to the local governing authority.

1449

5. Requiring the grantee to be an equal opportunity

1450

employer.

1451

6. Requiring the grantee to maintain a policy of awarding

1452

preference in employment to residents of this state, as defined

1453

by law, except for professional scientific staff positions

1454

requiring a doctoral degree, postdoctoral training positions, and

1455

graduate student positions.

1456

7. Requiring the grantee to maintain a policy of making

1457

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

1458

effective and scientifically sound.

1459

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

1460

listing system of the Agency for Workforce Innovation in

1461

advertising employment opportunities.

1462

9. Requiring the grantee to establish accredited science

1463

degree programs.

1464

10. Requiring the grantee to establish internship programs

1465

to create learning opportunities for educators and secondary,

1466

postsecondary, graduate, and doctoral students.

1467

11. Requiring the grantee to submit data to the corporation

1468

on the activities and performance during each fiscal year and to

1469

provide to the corporation an annual accounting of the

1470

expenditure of funds disbursed under this section.

1471

12. Establishing that the corporation shall review the

1472

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

1473

operational compliance with the provisions of the contract and

1474

with relevant provisions of law.

1475

13. Authorizing the grantee, when feasible, to use

1476

information submitted by it to the Federal Government or to other

1477

organizations awarding research grants to the grantee to help

1478

meet reporting requirements imposed under this section or the

1479

contract, if the information satisfies the reporting standards of

1480

this section and the contract.

1481

14. Unless amended pursuant to the force majeure provisions

1482

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

1483

years of the contract to create 545 positions and to acquire

1484

associated research equipment for the grantee's facility in this

1485

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

1486

total amount of not less than $45 million.

1487

15. Requiring the grantee to progress in the creation of

1488

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

1489

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

1490

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

1491

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

1492

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

1493

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

1494

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

1495

allow the grantee flexibility in achieving the objectives set

1496

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

1497

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

1498

the 7th year.

1499

16. Requiring the grantee to allow the corporation to

1500

retain an independent certified public accountant licensed in

1501

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

1502

grantee in order to audit the expenditure of funds disbursed to

1503

the grantee. The independent certified public accountant shall

1504

not disclose any confidential or proprietary scientific

1505

information of the grantee.

1506

17. Requiring the grantee to purchase liability insurance

1507

and governing the coverage level of such insurance.

1508

1509

The Office of Tourism, Trade, and Economic Development shall

1510

adopt rules regarding incentives for a grantee in purchasing

1511

goods and services from vendors in this state, including

1512

requiring the grantee to maintain a policy of making purchases

1513

from distributors and vendors located in enterprise zones as

1514

defined in s. 290.0065 and requiring the grantee to establish and

1515

maintain policies to promote supplier diversity of Florida

1516

entities using the guidelines developed by the Office of Supplier

1517

Diversity under s. 287.09451. The Office of Tourism, Trade, and

1518

Economic Development shall adopt rules requiring the grantee to

1519

submit data on activities and performance during each fiscal year

1520

regarding the purchases of goods and services from vendors in

1521

this state, including the use of distributors and vendors located

1522

in enterprise zones as defined in s. 290.0065 and the fulfillment

1523

of policies to promote supplier diversity of Florida entities

1524

using the guidelines developed by the Office of Supplier

1525

Diversity under s. 287.09451.

1526

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

1527

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

1528

nine members of the board of directors.

1529

(9) PERFORMANCE EXPECTATIONS FOR THE SCRIPPS RESEARCH

1530

INSTITUTE.--In addition to the provisions prescribed in

1531

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

1532

grantee shall include a provision that the grantee, in

1533

cooperation with the Office of Tourism, Trade, and Economic

1534

Development, shall report to the corporation on an annual basis

1535

certain performance expectations that reflect the aspirations of

1536

the Governor and the Legislature for the benefits accruing to

1537

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

1538

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

1539

expectations addressing:

1540

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

1541

from the Federal Government or sources other than this state.

1542

(b) The percentage of total research dollars received by

1543

The Scripps Research Institute from sources other than this state

1544

which is used to conduct research activities by the grantee in

1545

this state.

1546

1547

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

1548

the grantee.

1549

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

1550

results in commercial applications.

1551

(f) The number of collaborative agreements reached and

1552

maintained with colleges and universities in this state and with

1553

research institutions in this state, including agreements that

1554

foster participation in research opportunities by public and

1555

private colleges and universities and research institutions in

1556

this state with significant minority populations, including

1557

historically black colleges and universities.

1558

(g) The number of collaborative partnerships established

1559

and maintained with businesses in this state.

1560

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

1561

from sources other than the State of Florida.

1562

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

1563

this state as a result of commercialization of the research of

1564

the grantee.

1565

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

1566

state by the grantee.

1567

(k) The establishment and implementation of policies to

1568

promote supplier diversity using the guidelines developed by the

1569

Office of Supplier Diversity under s. 287.09451 and to comply

1570

with the ordinances, including any small business ordinances,

1571

enacted by the county and which are applicable to the biomedical

1572

research institution and campus located in this state.

1573

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

1574

coordinate with the Office of Supplier Diversity.

1575

(m) The establishment and implementation of a program to

1576

conduct workforce recruitment activities at public and private

1577

colleges and universities and community colleges in this state

1578

which request the participation of the grantee.

1579

1580

The contract shall require the grantee to provide information to

1581

the corporation on the progress in meeting these performance

1582

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

1583

Legislature that, in fulfilling its obligation to work with

1584

Florida's public and private colleges and universities, The

1585

Scripps Research Institute's Florida facility work with such

1586

colleges and universities regardless of size.

1587

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

1588

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

1589

corporation and the grantee shall include disbursement conditions

1590

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

1591

continued disbursement of funds under this section. These

1592

disbursement conditions shall be negotiated between the

1593

corporation and the grantee and shall not be designed to impede

1594

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

1595

disbursement conditions may be appropriately varied as to

1596

timeframes, numbers, values, and percentages. The disbursement

1597

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

1598

areas:

1599

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

1600

salaries paid.

1601

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

1602

its permanent facility, the grantee shall annually obtain

1603

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

1604

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

1605

facility.

1606

1607

its permanent facility, the grantee shall apply to the relevant

1608

accrediting agency for accreditation of its Florida graduate

1609

program.

1610

(d) The grantee shall purchase equipment for its Florida

1611

facility as scheduled in its contract with the corporation.

1612

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

1613

facility, the grantee shall establish a program for qualified

1614

graduate students from Florida universities permitting them

1615

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

1616

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

1617

permanent facility, the grantee shall establish a summer

1618

internship for high school students.

1619

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

1620

facility, the grantee shall establish a research program for

1621

middle and high school teachers.

1622

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

1623

permanent facility, the grantee shall establish a program for

1624

adjunct professors.

1625

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

1626

throughput technology, the grantee shall establish a program to

1627

allow open access for qualified science projects.

1628

(j) Beginning June 2004, The grantee shall collaborate

1629

commence collaborative efforts with Florida public and private

1630

colleges and universities, and shall continue cooperative

1631

collaboration through the term of the agreement.

1632

(k) Beginning 18 months after the grantee occupies the

1633

permanent facility, the grantee shall establish an annual seminar

1634

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

1635

and its collaborators at the Florida facility.

1636

(l) Beginning June 2004, The grantee shall collaborate

1637

commence collaboration efforts with the Office of Tourism, Trade,

1638

and Economic Development by complying with reasonable requests

1639

for cooperation in economic development efforts in the

1640

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

1641

shall also designate a person who shall be charged with assisting

1642

in these collaborative efforts.

1643

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

1644

(a) The corporation shall disburse funds to the grantee

1645

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

1646

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

1647

contract. The corporation shall complete disbursement of the

1648

total amount of funds payable to the grantee under the contract

1649

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

1650

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

1651

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

1652

shall be paid to the Biomedical Research Trust Fund of the

1653

Department of Health.

1654

(b) The contract shall provide for a reduction or

1655

elimination of funding in any year if:

1656

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

1657

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

1658

operations in the state for the succeeding year; or

1659

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

1660

contract, as defined and governed by the contract. Determination

1661

of material default or breach of contract shall require the

1662

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

1663

board.

1664

1665

under this section is conditioned upon the affirmative approval

1666

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

1667

and upon demonstration by the grantee that it has met the

1668

particular contractual deliverables that are the basis for that

1669

disbursement.

1670

(12) USE OF FUNDS.--

1671

(a) Funds appropriated in furtherance of this section may

1672

not be disbursed or expended for activities that do not

1673

principally benefit or that are not directly related to the

1674

establishment or operation of the grantee in this state, except

1675

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

1676

nine members of the board of directors.

1677

(b) No Funds appropriated in furtherance of this section

1678

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

1679

of state government or any political subdivision of the state.

1680

1681

funds appropriated in furtherance of this section and separate

1682

books and records relating to The Scripps Research Institute's

1683

Florida operation.

1684

(13) REINVESTMENT.--

1685

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

1686

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

1687

received by The Scripps Research Institute from the licensing or

1688

transfer of inventions, methods, processes, and other patentable

1689

discoveries conceived or reduced to practice using the grantee's

1690

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

1691

to which the grantee becomes entitled during the 20 years

1692

following the effective date of the contract between the

1693

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

1694

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

1695

cost of obtaining, maintaining, and enforcing related patent and

1696

intellectual property rights, both foreign and domestic.

1697

Reinvestment payments under this paragraph shall commence no

1698

later than 6 months after the grantee has received the final

1699

disbursement under the contract and shall continue until the

1700

maximum reinvestment has been paid.

1701

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

1702

revenues it receives from naming opportunities associated with

1703

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

1704

section, the term "naming opportunities" includes charitable

1705

donations from any person or entity in consideration for the

1706

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

1707

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

1708

obligation to make reinvestment payments under this section shall

1709

commence upon the execution of the contract between the

1710

corporation and the grantee.

1711

1712

All reinvestment payments made pursuant to this section shall be

1713

remitted to the state for deposit in the Biomedical Research

1714

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

1715

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

1716

maximum reinvestment required of the grantee pursuant to this

1717

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

1718

reinvestment payments equal $155 million or the contract expires,

1719

whichever is earlier, the board of the corporation shall

1720

determine whether the performance expectations and disbursement

1721

conditions have been met. If the board determines that the

1722

performance expectations and disbursement conditions have been

1723

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

1724

The grantee shall annually submit a schedule of the shares of

1725

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

1726

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

1727

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

1728

survive the expiration or termination of the contract between the

1729

corporation and the grantee.

1730

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

1731

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

1732

of the activities and outcomes under this section for the

1733

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

1734

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

1735

managing and enforcing the contract with the grantee.

1736

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

1737

the preceding fiscal year to the grantee.

1738

1739

fiscal year of funds disbursed under this section.

1740

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

1741

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

1742

jobs created for residents of this state.

1743

(e) Information on the amount and nature of economic

1744

activity generated through the activities of the grantee.

1745

(f) An assessment of factors affecting the progress toward

1746

achieving the projected biotech industry cluster associated with

1747

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

1748

the Executive Office of the Governor.

1749

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

1750

records of the corporation at the end of the preceding fiscal

1751

year conducted by an independent certified public accountant in

1752

accordance with rules of the Auditor General.

1753

(h) A description of the status of the performance

1754

expectations under subsection (9) and the disbursement conditions

1755

under subsection (10).

1756

1757

The corporation shall submit the report to the Governor, the

1758

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

1759

Representatives.

1760

(15) REPORT ON INNOVATION INCENTIVE PROGRAM

1761

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

1762

the activities and outcomes related to its oversight role for the

1763

Innovation Incentive Program for the preceding fiscal year. The

1764

report, at a minimum, must include:

1765

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

1766

recipient of the Innovation Incentive Program in achieving its

1767

agreement objectives, benchmarks, and performance expectations,

1768

and a discussion of all relevant factors related to its progress

1769

or lack thereof.

1770

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

1771

financial audits of the accounts and records of each grant

1772

recipient conducted by an independent certified public accountant

1773

in accordance with rules of the Auditor General.

1774

1775

improvements that may be undertaken by the Executive Office of

1776

the Governor.

1777

1778

The corporation shall submit the report to the Governor, the

1779

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

1780

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

1781

(16)(15) PROGRAM EVALUATION.--

1782

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

1783

Analysis and Government Accountability shall conduct a

1784

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

1785

Development and the corporation relating to the provisions of

1786

this section. The audit shall assess the implementation and

1787

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

1788

audit shall address:

1789

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

1790

Economic Development in disbursing funds appropriated under this

1791

section.

1792

2. Performance of the corporation in managing and enforcing

1793

the contract with the grantee.

1794

3. Compliance by the corporation with the provisions of

1795

this section and the provisions of the contract.

1796

4. Economic activity generated through funds disbursed

1797

under the contract.

1798

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

1799

Analysis and Government Accountability shall update the report

1800

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

1801

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

1802

report shall include a recommendation on whether the Legislature

1803

should retain the statutory authority for the corporation taking

1804

into account the corporation's oversight role for the Innovation

1805

Incentive Program.

1806

1807

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

1808

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

1809

Speaker of the House of Representatives. In completing the

1810

performance audits required under this subsection, the Office of

1811

Program Policy Analysis and Government Accountability shall

1812

maximize the use of reports submitted by the grantee to the

1813

Federal Government or to other organizations awarding research

1814

grants to the grantee.

1815

(17)(16) LIABILITY.--

1816

(a) The appropriation or disbursement of funds under this

1817

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

1818

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

1819

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

1820

of any such political subdivision.

1821

(b) The appropriation or disbursement of funds under this

1822

section does not subject the State of Florida, any political

1823

subdivision thereof, or the corporation to liability related to

1824

the research activities and research products of the grantee.

1825

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

1826

provisions contained in this act, if the grantee is prevented

1827

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

1828

its inability to occupy its permanent Florida facility within 2

1829

years after entering into the memorandum of agreement pursuant to

1830

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

1831

administrative or judicial proceedings, acts of God, labor

1832

disturbances, or other similar events beyond the control of the

1833

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

1834

which the grantee was delayed in commencing its occupancy of its

1835

permanent Florida facility. In no event shall the extension be

1836

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

1837

event, the Scripps Florida Funding Corporation shall continue to

1838

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

1839

current level of operations until the force majeure event ceases

1840

and the grantee is able to resume the contract schedule governing

1841

disbursement.

1842

Section 13. Paragraph (a) of subsection (4) of section

1843

288.9624, Florida Statutes, is amended to read:

1844

288.9624 Florida Opportunity Fund; creation; duties.--

1845

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

1846

variety of Florida-based, new technology companies and generating

1847

a return sufficient to continue reinvestment, the fund shall:

1848

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

1849

directly only in seed and early stage venture capital funds that

1850

have experienced managers or management teams with demonstrated

1851

experience, expertise, and a successful history in the investment

1852

of venture capital funds. Investments must be focused, focusing

1853

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

1854

investments in individual businesses. While not precluded from

1855

investing in venture capital funds that have investments outside

1856

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

1857

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

1858

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

1859

full-time, professional venture investment executive in order to

1860

be eligible for investment.

1861

2. In entering into partnerships with state universities

1862

that are designated as research universities having very high

1863

research activity by the 2005 Carnegie Classifications, invest

1864

directly in state-based seed or early stage venture capital

1865

funds. These investments shall be used to support companies that

1866

are developing the commercialization of a particular product or

1867

service, and that are operating from laboratory or office space

1868

on a university campus which has been constructed by a private

1869

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

1870

state funds for construction and investment. The fund may not

1871

make direct investments in individual businesses.

1872

Section 14. Subsection (5) of section 220.191, Florida

1873

Statutes, is amended to read:

1874

220.191 Capital investment tax credit.--

1875

(5) Applications shall be reviewed and certified pursuant

1876

to s. 288.061. The office, upon a recommendation by Enterprise

1877

Florida, Inc., shall first certify a business as eligible to

1878

receive tax credits pursuant to this section prior to the

1879

commencement of operations of a qualifying project, and such

1880

certification shall be transmitted to the Department of Revenue.

1881

Upon receipt of the certification, the Department of Revenue

1882

shall enter into a written agreement with the qualifying business

1883

specifying, at a minimum, the method by which income generated by

1884

or arising out of the qualifying project will be determined.

1885

Section 15. Subsection (2) of section 288.065, Florida

1886

Statutes, is amended to read:

1887

288.065 Rural Community Development Revolving Loan Fund.--

1888

(2) The program shall provide for long-term loans, loan

1889

guarantees, and loan loss reserves to units of local governments,

1890

or economic development organizations substantially underwritten

1891

by a unit of local government, within counties with populations

1892

of 75,000 or less, or any county that has a population of 120,000

1893

100,000 or less and is contiguous to a county with a population

1894

of 75,000 or less, as determined by the most recent official

1895

estimate pursuant to s. 186.901, residing in incorporated and

1896

unincorporated areas of the county, or to units of local

1897

government, or economic development organizations substantially

1898

underwritten by a unit of local government, within a rural area

1899

of critical economic concern. Requests for loans shall be made by

1900

application to the Office of Tourism, Trade, and Economic

1901

Development. Loans shall be made pursuant to agreements

1902

specifying the terms and conditions agreed to between the

1903

applicant and the Office of Tourism, Trade, and Economic

1904

Development. The loans shall be the legal obligations of the

1905

applicant. All repayments of principal and interest shall be

1906

returned to the loan fund and made available for loans to other

1907

applicants. However, in a rural area of critical economic concern

1908

designated by the Governor, and upon approval by the Office of

1909

Tourism, Trade, and Economic Development, repayments of principal

1910

and interest may be retained by the applicant if such repayments

1911

are dedicated and matched to fund regionally based economic

1912

development organizations representing the rural area of critical

1913

economic concern.

1914

Section 16. Paragraphs (b) and (e) of subsection (2) and

1915

subsection (3) of section 288.0655, Florida Statutes, are amended

1916

to read:

1917

288.0655 Rural Infrastructure Fund.--

1918

(2)

1919

(b) To facilitate access of rural communities and rural

1920

areas of critical economic concern as defined by the Rural

1921

Economic Development Initiative to infrastructure funding

1922

programs of the Federal Government, such as those offered by the

1923

United States Department of Agriculture and the United States

1924

Department of Commerce, and state programs, including those

1925

offered by Rural Economic Development Initiative agencies, and to

1926

facilitate local government or private infrastructure funding

1927

efforts, the office may award grants for up to 30 percent of the

1928

total infrastructure project cost. If an application for funding

1929

is for a catalyst site, as defined in s. 288.0656, the office may

1930

award grants for up to 40 percent of the total infrastructure

1931

project cost. Eligible projects must be related to specific job-

1932

creation or job-retention opportunities. Eligible projects may

1933

also include improving any inadequate infrastructure that has

1934

resulted in regulatory action that prohibits economic or

1935

community growth or reducing the costs to community users of

1936

proposed infrastructure improvements that exceed such costs in

1937

comparable communities. Eligible uses of funds shall include

1938

improvements to public infrastructure for industrial or

1939

commercial sites and upgrades to or development of public tourism

1940

infrastructure. Authorized infrastructure may include the

1941

following public or public-private partnership facilities: storm

1942

water systems; telecommunications facilities; broadband; roads or

1943

other remedies to transportation impediments; nature-based

1944

tourism facilities; or other physical requirements necessary to

1945

facilitate tourism, trade, and economic development activities in

1946

the community. Authorized infrastructure may also include

1947

publicly or privately owned self-powered nature-based tourism

1948

facilities; telecommunications; broadband; and additions to the

1949

distribution facilities of the existing natural gas utility as

1950

defined in s. 366.04(3)(c), the existing electric utility as

1951

defined in s. 366.02, or the existing water or wastewater utility

1952

as defined in s. 367.021(12), or any other existing water or

1953

wastewater facility, which owns a gas or electric distribution

1954

system or a water or wastewater system in this state where:

1955

1. A contribution-in-aid of construction is required to

1956

serve public or public-private partnership facilities under the

1957

tariffs of any natural gas, electric, water, or wastewater

1958

utility as defined herein; and

1959

2. Such utilities as defined herein are willing and able to

1960

provide such service.

1961

(e) To enable local governments to access the resources

1962

available pursuant to s. 403.973(19), the office may award grants

1963

for surveys, feasibility studies, and other activities related to

1964

the identification and preclearance review of land which is

1965

suitable for preclearance review. Authorized grants under this

1966

paragraph shall not exceed $75,000 each, except in the case of a

1967

project in a rural area of critical economic concern, in which

1968

case the grant shall not exceed $300,000. Any funds awarded under

1969

this paragraph must be matched at a level of 50 percent with

1970

local funds, except that any funds awarded for a project in a

1971

rural area of critical economic concern must be matched at a

1972

level of 33 percent with local funds. If an application for

1973

funding is for a catalyst site, as defined in s. 288.0656, the

1974

requirement for local match may be waived. In evaluating

1975

applications under this paragraph, the office shall consider the

1976

extent to which the application seeks to minimize administrative

1977

and consultant expenses.

1978

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

1979

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

1980

and the Florida Fish and Wildlife Conservation Commission, as

1981

appropriate, shall review and certify applications pursuant to s.

1982

288.061. The review shall include an evaluation of and evaluate

1983

the economic benefit of the projects and their long-term

1984

viability. The office shall have final approval for any grant

1985

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

1986

of receiving a completed application.

1987

Section 17. Section 288.0656, Florida Statutes, is amended

1988

to read:

1989

288.0656 Rural Economic Development Initiative.--

1990

(1)(a) Recognizing that rural communities and regions

1991

continue to face extraordinary challenges in their efforts to

1992

achieve significant improvements to their economies, specifically

1993

in terms of personal income, job creation, average wages, and

1994

strong tax bases, it is the intent of the Legislature to

1995

encourage and facilitate the location and expansion in such rural

1996

communities of major economic development projects of significant

1997

scale.

1998

(b) The Rural Economic Development Initiative, known as

1999

"REDI," is created within the Office of Tourism, Trade, and

2000

Economic Development, and the participation of state and regional

2001

agencies in this initiative is authorized.

2002

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

2003

(a) "Catalyst project" means a business locating or

2004

expanding in a rural area of critical economic concern that will

2005

serve as an economic growth opportunity of regional significance

2006

for the growth of a regional target industry cluster. The project

2007

will provide capital investment of significant scale which will

2008

affect the entire region and the development of high-wage and

2009

high-skill jobs.

2010

(b) "Catalyst site" means a parcel or parcel of lands

2011

within a rural area of critical economic concern that has been

2012

prioritized as a geographic site for economic development through

2013

partnerships with state, regional, and local organizations. The

2014

site must be reviewed by REDI, and approved by the Office of

2015

Tourism, Trade, and Economic Development for purposes of locating

2016

a catalyst project.

2017

(c)(a) "Economic distress" means conditions affecting the

2018

fiscal and economic viability of a rural community, including

2019

such factors as low per capita income, low per capita taxable

2020

values, high unemployment, high underemployment, low weekly

2021

earned wages compared to the state average, low housing values

2022

compared to the state average, high percentages of the population

2023

receiving public assistance, high poverty levels compared to the

2024

state average, and a lack of year-round stable employment

2025

opportunities.

2026

(d) "Rural area of critical economic concern" means a rural

2027

community, or a region composed of rural communities, designated

2028

by the Governor, that has been adversely affected by an

2029

extraordinary economic event, severe or chronic distress, or a

2030

natural disaster or that presents a unique economic development

2031

opportunity of regional impact.

2032

(e)(b) "Rural community" means:

2033

1. A county with a population of 75,000 or less.

2034

2. A county with a population of 120,000 100,000 or less

2035

that is contiguous to a county with a population of 75,000 or

2036

less.

2037

3. A municipality within a county described in subparagraph

2038

1. or subparagraph 2.

2039

4. An unincorporated federal enterprise community or an

2040

incorporated rural city with a population of 25,000 or less and

2041

an employment base focused on traditional agricultural or

2042

resource-based industries, located in a county not defined as

2043

rural, which has at least three or more of the economic distress

2044

factors identified in paragraph (a) and verified by the Office of

2045

Tourism, Trade, and Economic Development.

2046

2047

For purposes of this paragraph, population shall be determined in

2048

accordance with the most recent official estimate pursuant to s.

2049

186.901.

2050

(3) REDI shall be responsible for coordinating and focusing

2051

the efforts and resources of state and regional agencies on the

2052

problems which affect the fiscal, economic, and community

2053

viability of Florida's economically distressed rural communities,

2054

working with local governments, community-based organizations,

2055

and private organizations that have an interest in the growth and

2056

development of these communities to find ways to balance

2057

environmental and growth management issues with local needs.

2058

(4) REDI shall review and evaluate the impact of statutes

2059

and rules on rural communities and shall work to minimize any

2060

adverse impact and undertake outreach and capacity building

2061

efforts.

2062

(5) REDI shall facilitate better access to state resources

2063

by promoting direct access and referrals to appropriate state and

2064

regional agencies and statewide organizations. REDI may undertake

2065

outreach, capacity-building, and other advocacy efforts to

2066

improve conditions in rural communities. These activities may

2067

include sponsorship of conferences and achievement awards.

2068

(6)(a) By August 1 of each year, the head of each of the

2069

following agencies and organizations shall designate a high-level

2070

staff person from within the agency or organization to serve as

2071

the REDI representative for the agency or organization:

2072

1. The Department of Community Affairs.

2073

2. The Department of Transportation.

2074

3. The Department of Environmental Protection.

2075

4. The Department of Agriculture and Consumer Services.

2076

5. The Department of State.

2077

6. The Department of Health.

2078

7. The Department of Children and Family Services.

2079

8. The Department of Corrections.

2080

9. The Agency for Workforce Innovation.

2081

10. The Department of Education.

2082

11. The Department of Juvenile Justice.

2083

12. The Fish and Wildlife Conservation Commission.

2084

13. Each water management district.

2085

14. Enterprise Florida, Inc.

2086

15. Workforce Florida, Inc.

2087

16. The Florida Commission on Tourism or VISIT Florida.

2088

17. The Florida Regional Planning Council Association.

2089

18. The Agency for Health Care Administration Florida State

2090

Rural Development Council.

2091

19. The Institute of Food and Agricultural Sciences (IFAS).

2092

2093

An alternate for each designee shall also be chosen, and the

2094

names of the designees and alternates shall be sent to the

2095

director of the Office of Tourism, Trade, and Economic

2096

Development.

2097

(b) Each REDI representative must have comprehensive

2098

knowledge of his or her agency's functions, both regulatory and

2099

service in nature, and of the state's economic goals, policies,

2100

and programs. This person shall be the primary point of contact

2101

for his or her agency with REDI on issues and projects relating

2102

to economically distressed rural communities and with regard to

2103

expediting project review, shall ensure a prompt effective

2104

response to problems arising with regard to rural issues, and

2105

shall work closely with the other REDI representatives in the

2106

identification of opportunities for preferential awards of

2107

program funds and allowances and waiver of program requirements

2108

when necessary to encourage and facilitate long-term private

2109

capital investment and job creation.

2110

2111

review and evaluation of statutes and rules for adverse impact on

2112

rural communities and the development of alternative proposals to

2113

mitigate that impact.

2114

(d) Each REDI representative shall be responsible for

2115

ensuring that each district office or facility of his or her

2116

agency is informed about the Rural Economic Development

2117

Initiative and for providing assistance throughout the agency in

2118

the implementation of REDI activities.

2119

(7)(a) REDI may recommend to the Governor up to three rural

2120

areas of critical economic concern. A rural area of critical

2121

economic concern must be a rural community, or a region composed

2122

of such, that has been adversely affected by an extraordinary

2123

economic event or a natural disaster or that presents a unique

2124

economic development opportunity of regional impact that will

2125

create more than 1,000 jobs over a 5-year period. The Governor

2126

may by executive order designate up to three rural areas of

2127

critical economic concern which will establish these areas as

2128

priority assignments for REDI as well as to allow the Governor,

2129

acting through REDI, to waive criteria, requirements, or similar

2130

provisions of any economic development incentive. Such incentives

2131

shall include, but not be limited to: the Qualified Target

2132

Industry Tax Refund Program under s. 288.106, the Quick Response

2133

Training Program under s. 288.047, the Quick Response Training

2134

Program for participants in the welfare transition program under

2135

s. 288.047(8), transportation projects under s. 288.063, the

2136

brownfield redevelopment bonus refund under s. 288.107, and the

2137

rural job tax credit program under ss. 212.098 and 220.1895.

2138

(b) Designation as a rural area of critical economic

2139

concern under this subsection shall be contingent upon the

2140

execution of a memorandum of agreement among the Office of

2141

Tourism, Trade, and Economic Development; the governing body of

2142

the county; and the governing bodies of any municipalities to be

2143

included within a rural area of critical economic concern. Such

2144

agreement shall specify the terms and conditions of the

2145

designation, including, but not limited to, the duties and

2146

responsibilities of the county and any participating

2147

municipalities to take actions designed to facilitate the

2148

retention and expansion of existing businesses in the area, as

2149

well as the recruitment of new businesses to the area.

2150

2151

designate catalyst projects, provided that each catalyst project

2152

is specifically recommended by REDI, identified as a catalyst

2153

project by Enterprise Florida, Inc., and confirmed as a catalyst

2154

project by the Office of Tourism, Trade, and Economic

2155

Development. All state agencies and departments shall use all

2156

available tools and resources to the extent permissible by law to

2157

promote the creation and development of each catalyst project and

2158

the development of catalyst sites.

2159

(8) REDI shall assist local governments within rural areas

2160

of critical economic concern with comprehensive planning needs

2161

with efforts that further the provisions of this section. Such

2162

assistance shall reflect a multidisciplinary approach among all

2163

agencies and shall include economic development and planning

2164

objectives.

2165

(a) A local government may request assistance in the

2166

preparation of comprehensive plan amendments, pursuant to part II

2167

of chapter 163, that will stimulate economic activity.

2168

1. The local government must contact the Office of Tourism,

2169

Trade, and Economic Development to request assistance.

2170

2. REDI representatives shall meet with the local

2171

government within 15 days after such request to develop the scope

2172

of assistance that will be provided to assist the development,

2173

transmittal, and adoption of the proposed comprehensive plan

2174

amendment.

2175

3. As part of the assistance provided, REDI representatives

2176

shall also identify other needed local and developer actions for

2177

approval of the project and recommend a timeline for the local

2178

government and developer that will minimize project delays.

2179

(b) In addition, REDI shall solicit requests each year for

2180

assistance from local governments within a rural area of critical

2181

economic concern to update the future land use element and other

2182

associated elements of the local government's comprehensive plan

2183

to better position the community to respond to economic

2184

development potential within the county or municipality. REDI

2185

shall provide direct assistance to such local governments to

2186

update their comprehensive plans pursuant to this paragraph. At

2187

least one comprehensive planning technical assistance effort

2188

shall be selected each year.

2189

2190

assistance manual based upon experiences learned in providing

2191

direct assistance under this subsection.

2192

(9)(8) REDI shall submit a report to the Governor, the

2193

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

2194

Representatives each year on or before September February 1 on

2195

all REDI activities for the prior fiscal year. This report shall

2196

include a status report on all projects currently being

2197

coordinated through REDI, the number of preferential awards and

2198

allowances made pursuant to this section, the dollar amount of

2199

such awards, and the names of the recipients. The report shall

2200

also include a description of all waivers of program requirements

2201

granted. The report shall also include information as to the

2202

economic impact of the projects coordinated by REDI.

2203

Section 18. Subsection (1) of section 288.0657, Florida

2204

Statutes, is amended to read:

2205

288.0657 Florida rural economic development strategy

2206

grants.--

2207

(1) As used in this section, the term "rural community"

2208

means:

2209

(a) A county with a population of 75,000 or less.

2210

(b) A county with a population of 120,000 100,000 or less

2211

that is contiguous to a county with a population of 75,000 or

2212

less.

2213

2214

(a) or paragraph (b).

2215

2216

For purposes of this subsection, population shall be determined

2217

in accordance with the most recent official estimate pursuant to

2218

s. 186.901.

2219

Section 19. In order to carry out the additional rural

2220

economic development responsibilities in this act, one full-time

2221

equivalent position and the recurring sum of $60,000 for

2222

associated salaries and benefits is appropriated from the General

2223

Revenue Fund to the Office of Tourism, Trade, and Economic

2224

Development.

2225

Section 20. Subsection (2) of section 257.193, Florida

2226

Statutes, is amended to read:

2227

257.193 Community Libraries in Caring Program.--

2228

(2) The purpose of the Community Libraries in Caring

2229

Program is to assist libraries in rural communities, as defined

2230

in s. 288.0656(2)(b) and subject to the provisions of s.

2231

288.06561, to strengthen their collections and services, improve

2232

literacy in their communities, and improve the economic viability

2233

of their communities.

2234

Section 21. Section 288.019, Florida Statutes, is amended

2235

to read:

2236

288.019 Rural considerations in grant review and evaluation

2237

processes.--Notwithstanding any other law, and to the fullest

2238

extent possible, the member agencies and organizations of the

2239

Rural Economic Development Initiative (REDI) as defined in s.

2240

288.0656(6)(a) shall review all grant and loan application

2241

evaluation criteria to ensure the fullest access for rural

2242

counties as defined in s. 288.0656(2)(b) to resources available

2243

throughout the state.

2244

(1) Each REDI agency and organization shall review all

2245

evaluation and scoring procedures and develop modifications to

2246

those procedures which minimize the impact of a project within a

2247

rural area.

2248

(2) Evaluation criteria and scoring procedures must provide

2249

for an appropriate ranking based on the proportionate impact that

2250

projects have on a rural area when compared with similar project

2251

impacts on an urban area.

2252

(3) Evaluation criteria and scoring procedures must

2253

recognize the disparity of available fiscal resources for an

2254

equal level of financial support from an urban county and a rural

2255

county.

2256

(a) The evaluation criteria should weight contribution in

2257

proportion to the amount of funding available at the local level.

2258

(b) In-kind match should be allowed and applied as

2259

financial match when a county is experiencing financial distress

2260

through elevated unemployment at a rate in excess of the state's

2261

average by 5 percentage points or because of the loss of its ad

2262

valorem base.

2263

(4) For existing programs, the modified evaluation criteria

2264

and scoring procedure must be delivered to the Office of Tourism,

2265

Trade, and Economic Development for distribution to the REDI

2266

agencies and organizations. The REDI agencies and organizations

2267

shall review and make comments. Future rules, programs,

2268

evaluation criteria, and scoring processes must be brought before

2269

a REDI meeting for review, discussion, and recommendation to

2270

allow rural counties fuller access to the state's resources.

2271

Section 22. Section 288.06561, Florida Statutes, is amended

2272

to read:

2273

288.06561 Reduction or waiver of financial match

2274

requirements.--Notwithstanding any other law, the member agencies

2275

and organizations of the Rural Economic Development Initiative

2276

(REDI), as defined in s. 288.0656(6)(a), shall review the

2277

financial match requirements for projects in rural areas as

2278

defined in s. 288.0656(2)(b).

2279

(1) Each agency and organization shall develop a proposal

2280

to waive or reduce the match requirement for rural areas.

2281

(2) Agencies and organizations shall ensure that all

2282

proposals are submitted to the Office of Tourism, Trade, and

2283

Economic Development for review by the REDI agencies.

2284

(3) These proposals shall be delivered to the Office of

2285

Tourism, Trade, and Economic Development for distribution to the

2286

REDI agencies and organizations. A meeting of REDI agencies and

2287

organizations must be called within 30 days after receipt of such

2288

proposals for REDI comment and recommendations on each proposal.

2289

(4) Waivers and reductions must be requested by the county

2290

or community, and such county or community must have three or

2291

more of the factors identified in s. 288.0656(2)(a).

2292

(5) Any other funds available to the project may be used

2293

for financial match of federal programs when there is fiscal

2294

hardship, and the match requirements may not be waived or

2295

reduced.

2296

(6) When match requirements are not reduced or eliminated,

2297

donations of land, though usually not recognized as an in-kind

2298

match, may be permitted.

2299

(7) To the fullest extent possible, agencies and

2300

organizations shall expedite the rule adoption and amendment

2301

process if necessary to incorporate the reduction in match by

2302

rural areas in fiscal distress.

2303

(8) REDI shall include in its annual report an evaluation

2304

on the status of changes to rules, number of awards made with

2305

waivers, and recommendations for future changes.

2306

Section 23. Paragraph (d) of subsection (15) of section

2307

627.6699, Florida Statutes, is amended to read:

2308

627.6699 Employee Health Care Access Act.--

2309

(15) SMALL EMPLOYERS ACCESS PROGRAM.--

2310

(d) Eligibility.--

2311

1. Any small employer that is actively engaged in business,

2312

has its principal place of business in this state, employs up to

2313

25 eligible employees on business days during the preceding

2314

calendar year, employs at least 2 employees on the first day of

2315

the plan year, and has had no prior coverage for the last 6

2316

months may participate.

2317

2. Any municipality, county, school district, or hospital

2318

employer located in a rural community as defined in s.

2319

288.0656(2)(b) may participate.

2320

3. Nursing home employers may participate.

2321

4. Each dependent of a person eligible for coverage is also

2322

eligible to participate.

2323

Any employer participating in the program must do so until the

2324

end of the term for which the carrier providing the coverage is

2325

obligated to provide such coverage to the program. Coverage for a

2326

small employer group that ceases to meet the eligibility

2327

requirements of this section may be terminated at the end of the

2328

policy period for which the necessary premiums have been paid.

2329

Section 24. This act shall take effect upon becoming a law.

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