| 1 | Representative Mayfield offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Between lines 1345 and 1346, insert: |
| 5 | Section 24. Present paragraphs (a) through (n) of |
| 6 | subsection (2) of section 288.1089, Florida Statutes, are |
| 7 | redesignated as paragraphs (b) through (o), respectively, and a |
| 8 | new paragraph (a) is added to that subsection, subsections (3), |
| 9 | (5), (6), and (7) of that section are amended, and paragraph (d) |
| 10 | is added to subsection (4) of that section, to read: |
| 11 | 288.1089 Innovation Incentive Program.-- |
| 12 | (1) The Innovation Incentive Program is created within the |
| 13 | Office of Tourism, Trade, and Economic Development to ensure |
| 14 | that sufficient resources are available to allow the state to |
| 15 | respond expeditiously to extraordinary economic opportunities |
| 16 | and to compete effectively for high-value research and |
| 17 | development and innovation business projects. |
| 18 | (2) As used in this section, the term: |
| 19 | (a) "Alternative and renewable energy" means electrical, |
| 20 | mechanical, or thermal energy produced from a method that uses |
| 21 | one or more of the following fuels or energy sources: ethanol, |
| 22 | cellulosic ethanol, biobutanol, biodiesel, biomass, biogas, |
| 23 | hydrogen fuel cells, ocean energy, hydrogen, solar, hydro, wind, |
| 24 | or geothermal. |
| 25 | (3) To be eligible for consideration for an innovation |
| 26 | incentive award, an innovation business or research and |
| 27 | development entity, or alternative and renewable energy project |
| 28 | must submit a written application to Enterprise Florida, Inc., |
| 29 | before making a decision to locate new operations in this state |
| 30 | or expand an existing operation in this state. The application |
| 31 | must include, but not be limited to: |
| 32 | (a) The applicant's federal employer identification |
| 33 | number, unemployment account number, and state sales tax |
| 34 | registration number. If such numbers are not available at the |
| 35 | time of application, they must be submitted to the office in |
| 36 | writing prior to the disbursement of any payments under this |
| 37 | section. |
| 38 | (b) The location in this state at which the project is |
| 39 | located or is to be located. |
| 40 | (c) A description of the type of business activity, |
| 41 | product, or research and development undertaken by the |
| 42 | applicant, including six-digit North American Industry |
| 43 | Classification System codes for all activities included in the |
| 44 | project. |
| 45 | (d) The applicant's projected investment in the project. |
| 46 | (e) The total investment, from all sources, in the |
| 47 | project. |
| 48 | (f) The number of net new full-time equivalent jobs in |
| 49 | this state the applicant anticipates having created as of |
| 50 | December 31 of each year in the project and the average annual |
| 51 | wage of such jobs. |
| 52 | (g) The total number of full-time equivalent employees |
| 53 | currently employed by the applicant in this state, if |
| 54 | applicable. |
| 55 | (h) The anticipated commencement date of the project. |
| 56 | (i) A detailed explanation of why the innovation incentive |
| 57 | is needed to induce the applicant to expand or locate in the |
| 58 | state and whether an award would cause the applicant to locate |
| 59 | or expand in this state. |
| 60 | (j) If applicable, an estimate of the proportion of the |
| 61 | revenues resulting from the project that will be generated |
| 62 | outside this state. |
| 63 | (4) To qualify for review by the office, the applicant |
| 64 | must, at a minimum, establish the following to the satisfaction |
| 65 | of Enterprise Florida, Inc., and the office: |
| 66 | (d) For an alternative and renewable energy project in |
| 67 | this state, the project must: |
| 68 | 1. Demonstrate a plan for significant collaboration with |
| 69 | an institution of higher education; |
| 70 | 2. Provide the state, at a minimum, a break-even return on |
| 71 | investment within a 20-year period; |
| 72 | 3. Include matching funds provided by the applicant or |
| 73 | other available sources. This requirement may be waived if the |
| 74 | office and the department determine that the merits of the |
| 75 | individual project or the specific circumstances warrant such |
| 76 | action; |
| 77 | 4. Be located in this state; |
| 78 | 5. Provide jobs that pay an estimated annual average wage |
| 79 | that equals at least 130 percent of the average private-sector |
| 80 | wage. The average wage requirement may be waived if the office |
| 81 | and the commission determine that the merits of the individual |
| 82 | project or the specific circumstances warrant such action; and |
| 83 | 6. Meet one of the following criteria: |
| 84 | a. Result in the creation of at least 35 direct, new jobs |
| 85 | at the business. |
| 86 | b. Have an activity or product that uses feedstock or |
| 87 | other raw materials grown or produced in this state. |
| 88 | c. Have a cumulative investment of at least $50 million |
| 89 | within a 5-year period. |
| 90 | d. Address the technical feasibility of the technology, |
| 91 | and the extent to which the proposed project has been |
| 92 | demonstrated to be technically feasible based on pilot project |
| 93 | demonstrations, laboratory testing, scientific modeling, or |
| 94 | engineering or chemical theory that supports the proposal. |
| 95 | e. Include innovative technology and the degree to which |
| 96 | the project or business incorporates an innovative new |
| 97 | technology or an innovative application of an existing |
| 98 | technology. |
| 99 | f. Include production potential and the degree to which a |
| 100 | project or business generates thermal, mechanical, or electrical |
| 101 | energy by means of a renewable energy resource that has |
| 102 | substantial long-term production potential. The project must, to |
| 103 | the extent possible, quantify annual production potential in |
| 104 | megawatts or kilowatts. |
| 105 | g. Include and address energy efficiency and the degree to |
| 106 | which a project demonstrates efficient use of energy, water, and |
| 107 | material resources. |
| 108 | h. Include project management and the ability of |
| 109 | management to administer a complete the business project. |
| 110 | (5) Enterprise Florida, Inc., shall evaluate proposals for |
| 111 | innovation incentive awards and transmit recommendations for |
| 112 | awards to the office. Enterprise Florida, Inc., shall solicit |
| 113 | comments and recommendations from the Florida Energy and Climate |
| 114 | Commission for alternative and renewable energy project |
| 115 | proposals. Such evaluation and recommendation must include, but |
| 116 | need not be limited to: |
| 117 | (a) A description of the project, its required facilities, |
| 118 | and the associated product, service, or research and development |
| 119 | associated with the project. |
| 120 | (b) The percentage of match provided for the project. |
| 121 | (c) The number of full-time equivalent jobs that will be |
| 122 | created by the project, the total estimated average annual wages |
| 123 | of such jobs, and the types of business activities and jobs |
| 124 | likely to be stimulated by the project. |
| 125 | (d) The cumulative investment to be dedicated to the |
| 126 | project within 5 years and the total investment expected in the |
| 127 | project if more than 5 years. |
| 128 | (e) The projected economic and fiscal impacts on the local |
| 129 | and state economies relative to investment. |
| 130 | (f) A statement of any special impacts the project is |
| 131 | expected to stimulate in a particular business sector in the |
| 132 | state or regional economy or in the state's universities and |
| 133 | community colleges. |
| 134 | (g) A statement of any anticipated or proposed |
| 135 | relationships with state universities. |
| 136 | (h) A statement of the role the incentive is expected to |
| 137 | play in the decision of the applicant to locate or expand in |
| 138 | this state. |
| 139 | (i) A recommendation and explanation of the amount of the |
| 140 | award needed to cause the applicant to expand or locate in this |
| 141 | state. |
| 142 | (j) A discussion of the efforts and commitments made by |
| 143 | the local community in which the project is to be located to |
| 144 | induce the applicant's location or expansion, taking into |
| 145 | consideration local resources and abilities. |
| 146 | (k) A recommendation for specific performance criteria the |
| 147 | applicant would be expected to achieve in order to receive |
| 148 | payments from the fund and penalties or sanctions for failure to |
| 149 | meet or maintain performance conditions. |
| 150 | (l) For a research and development facility project: |
| 151 | 1. A description of the extent to which the project has |
| 152 | the potential to serve as catalyst for an emerging or evolving |
| 153 | cluster. |
| 154 | 2. A description of the extent to which the project has or |
| 155 | could have a long-term collaborative research and development |
| 156 | relationship with one or more universities or community colleges |
| 157 | in this state. |
| 158 | 3. A description of the existing or projected impact of |
| 159 | the project on established clusters or targeted industry |
| 160 | sectors. |
| 161 | 4. A description of the project's contribution to the |
| 162 | diversity and resiliency of the innovation economy of this |
| 163 | state. |
| 164 | 5. A description of the project's impact on special needs |
| 165 | communities, including, but not limited to, rural areas, |
| 166 | distressed urban areas, and enterprise zones. |
| 167 | (6) In consultation with Enterprise Florida, Inc., the |
| 168 | office may negotiate the proposed amount of an award for any |
| 169 | applicant meeting the requirements of this section. In |
| 170 | negotiating such award, the office shall consider the amount of |
| 171 | the incentive needed to cause the applicant to locate or expand |
| 172 | in this state in conjunction with other relevant applicant |
| 173 | impact and cost information and analysis as described in this |
| 174 | section. Particular emphasis shall be given to the potential for |
| 175 | the project to stimulate additional private investment and high- |
| 176 | quality employment opportunities in the area. |
| 177 | (7) Upon receipt of the evaluation and recommendation from |
| 178 | Enterprise Florida, Inc., and from the Florida Energy and |
| 179 | Climate Commission for alternative and renewable energy project |
| 180 | proposals, the director shall recommend to the Governor the |
| 181 | approval or disapproval of an award. In recommending approval of |
| 182 | an award, the director shall include proposed performance |
| 183 | conditions that the applicant must meet in order to obtain |
| 184 | incentive funds and any other conditions that must be met before |
| 185 | the receipt of any incentive funds. The Governor shall consult |
| 186 | with the President of the Senate and the Speaker of the House of |
| 187 | Representatives before giving approval for an award. |
| 188 | (a) Upon approval of an award for a research and |
| 189 | development project or an innovation business project, the |
| 190 | Executive Office of the Governor shall release the funds |
| 191 | pursuant to the legislative consultation and review requirements |
| 192 | set forth in s. 216.177. |
| 193 | (b) Upon approval of an award for an alternative and |
| 194 | renewable energy project, the Executive Office of the Governor |
| 195 | shall release the funds pursuant to the legislative consultation |
| 196 | and review requirements set forth in s. 216.177, with the |
| 197 | exception that upon written notice from either the chair or the |
| 198 | vice chair of the Legislative Budget Commission or the President |
| 199 | of the Senate or the Speaker of the House of Representatives |
| 200 | that the award exceeds the delegated authority of Executive |
| 201 | Office of the Governor or is contrary to legislative policy and |
| 202 | intent, the Governor shall void such action until the |
| 203 | Legislative Budget Commission or the Legislature addresses the |
| 204 | issue. |
| 205 | (8) Upon approval by the Governor and release of the funds |
| 206 | as set forth in subsection (7), the director shall issue a |
| 207 | letter certifying the applicant as qualified for an award. The |
| 208 | office and the applicant shall enter into an agreement that sets |
| 209 | forth the conditions for payment of incentives. The agreement |
| 210 | must include the total amount of funds awarded; the performance |
| 211 | conditions that must be met to obtain the award or portions of |
| 212 | the award, including, but not limited to, net new employment in |
| 213 | the state, average wage, and total cumulative investment; |
| 214 | demonstration of a baseline of current service and a measure of |
| 215 | enhanced capability; the methodology for validating performance; |
| 216 | the schedule of payments; and sanctions for failure to meet |
| 217 | performance conditions, including any clawback provisions. |
| 218 | (9) Enterprise Florida, Inc., shall assist the office in |
| 219 | validating the performance of an innovation business or research |
| 220 | and development facility that has received an award. At the |
| 221 | conclusion of the innovation incentive award agreement, or its |
| 222 | earlier termination, Enterprise Florida, Inc., shall, within 90 |
| 223 | days, report the results of the innovation incentive award to |
| 224 | the Governor, the President of the Senate, and the Speaker of |
| 225 | the House of Representatives. |
| 226 | (10) Enterprise Florida, Inc., shall develop business ethics |
| 227 | standards based on appropriate best industry practices which |
| 228 | shall be applicable to all award recipients. The standards shall |
| 229 | address ethical duties of business enterprises, fiduciary |
| 230 | responsibilities of management, and compliance with the laws of |
| 231 | this state. Enterprise Florida, Inc., may collaborate with the |
| 232 | State University System in reviewing and evaluating appropriate |
| 233 | business ethics standards. Such standards shall be provided to |
| 234 | the Governor, the President of the Senate, and the Speaker of |
| 235 | the House of Representatives by December 31, 2006. An award |
| 236 | agreement entered into on or after December 31, 2006, shall |
| 237 | require a recipient to comply with the business ethics standards |
| 238 | developed pursuant to this section. |
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| 243 | ----------------------------------------------------- |
| 244 | T I T L E A M E N D M E N T |
| 245 | Remove line 111 and insert: |
| 246 | contract; amending s. 288.1089, F.S.; defining the term |
| 247 | "alternative and renewable energy"; detailing the conditions for |
| 248 | an alternative and renewable energy project to be eligible for |
| 249 | an innovation incentive award; amending s. 316.0741, F.S.; |
| 250 | requiring all hybrid |
| 251 |
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