SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
CHAMBER ACTION
Senate House
.
.
1 .
.
2 .
.
3 .
.
4 ______________________________________________________________
5
6
7
8
9
10 ______________________________________________________________
11 Senator King moved the following amendment:
12
13 Senate Amendment (with title amendment)
14 Delete everything after the enacting clause
15
16 and insert:
17 Section 1. Subsection (4) of section 17.41, Florida
18 Statutes, is amended to read:
19 17.41 Department of Banking and Finance Tobacco
20 Settlement Clearing Trust Fund.--
21 (4) Net proceeds of the sale of the tobacco settlement
22 agreement received by the state shall be immediately deposited
23 into the Lawton Chiles Endowment Fund, created in s. 215.5601
24 s. 215.5601(4), without deposit to the Tobacco Settlement
25 Clearing Trust Fund.
26 Section 2. Paragraph (h) of subsection (1) of section
27 20.435, Florida Statutes, is amended to read:
28 20.435 Department of Health; trust funds.--
29 (1) The following trust funds are hereby created, to
30 be administered by the Department of Health:
31 (h) Biomedical Research Trust Fund.
1
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 1. Funds to be credited to the trust fund shall
2 consist of funds deposited pursuant to s. 215.5601 s.
3 215.5601(4). Funds shall be used for the purposes of the
4 Florida Biomedical Research Program as specified in s.
5 215.5602. The trust fund is exempt from the service charges
6 imposed by s. 215.20.
7 2. Notwithstanding the provisions of s. 216.301 and
8 pursuant to s. 216.351, any balance in the trust fund at the
9 end of any fiscal year shall remain in the trust fund at the
10 end of the year and shall be available for carrying out the
11 purposes of the trust fund.
12 3. The trust fund shall, unless terminated sooner, be
13 terminated on July 1, 2004.
14 Section 3. Section 215.5601, Florida Statutes, is
15 amended to read:
16 (Substantial rewording of section. See
17 s. 215.5601, F.S., for present text.)
18 215.5601 Lawton Chiles Endowment Fund.--
19 (1) LEGISLATIVE INTENT.--It is the intent of the
20 Legislature to:
21 (a) Provide a perpetual source of enhanced funding for
22 state children's health programs, child welfare programs,
23 children's community-based health and human services
24 initiatives, elder programs, and biomedical research
25 activities related to tobacco use.
26 (b) Use tobacco settlement moneys as the source of
27 enhanced funding to ensure the financial security of vital
28 health and human services programs for children and elders.
29 (c) Ensure that enhancement revenues will be available
30 to help finance these important programs and initiatives.
31 (d) Provide funds to help support public-health and
2
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 biomedical research for the prevention, diagnosis, and
2 treatment of diseases related to tobacco use by creating an
3 annual and perpetual source of funding for biomedical research
4 in the state in order to expand the foundation of biomedical
5 knowledge relating to the prevention, diagnosis, and treatment
6 of diseases related to tobacco use, including cancer,
7 cardiovascular disease, stroke, and pulmonary disease; improve
8 the quality of the state's academic health centers by bringing
9 the advances of biomedical research into the training of
10 physicians and other health care providers; and increase the
11 state's per capita funding for biomedical research by
12 undertaking new initiatives in biomedical research which will
13 attract additional funding from outside the state while also
14 stimulating economic activity in the state in areas related to
15 biomedical research, such as the research and production of
16 pharmaceuticals, biotechnology, and medical devices.
17 (e) Encourage the development of community-based
18 solutions to strengthen and improve the quality of life of
19 Florida's most vulnerable citizens, its children and elders.
20 (2) DEFINITIONS.--As used in this section, the term:
21 (a) "Board" means the State Board of Administration
22 established by s. 16, Art. IX of the State Constitution of
23 1885 and incorporated into s. 9(c), Art. XII of the State
24 Constitution of 1968.
25 (b) "Endowment" means the Lawton Chiles Endowment
26 Fund.
27 (c) "Earnings" means all income generated by
28 investments and the net change in the market value of assets.
29 (d) "State agency" or "state agencies" means the
30 Department of Health, the Department of Children and Family
31 Services, the Department of Elderly Affairs, or the Agency for
3
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 Health Care Administration, or any combination thereof, as the
2 context indicates.
3 (3) LAWTON CHILES ENDOWMENT FUND; CREATION;
4 PRINCIPAL.--
5 (a) There is created the Lawton Chiles Endowment Fund,
6 to be administered by the State Board of Administration. The
7 endowment shall serve as a clearing trust fund, not subject to
8 termination under s. 19(f), Art. III of the State
9 Constitution. The endowment fund shall be exempt from the
10 service charges imposed by s. 215.20.
11 (b) The endowment shall receive moneys from the sale
12 of the state's right, title, and interest in and to the
13 tobacco settlement agreement as defined in s. 215.56005,
14 including the right to receive payments under such agreement,
15 and from accounts transferred from the Department of Banking
16 and Finance Tobacco Settlement Clearing Trust Fund established
17 under s. 17.41. Amounts to be transferred from the Department
18 of Banking and Finance Tobacco Settlement Clearing Trust Fund
19 to the endowment shall be in the following amounts for the
20 following fiscal years:
21 1. For fiscal year 1999-2000, $1.1 billion;
22 2. For fiscal year 2000-2001, $200 million;
23 3. For fiscal year 2001-2002, $200 million;
24 4. For fiscal year 2002-2003, $200 million; and
25 5. For all subsequent fiscal years, an amount equal to
26 the greater of $40 million or 10 percent of the payments
27 deposited into the Tobacco Settlement Clearing Trust Fund.
28 (c) Amounts to be transferred under subparagraphs
29 (b)2., 3., 4., and 5. may be reduced by an amount equal to the
30 lesser of $200 million or the amount the endowment receives in
31 that fiscal year from the sale of the state's right, title,
4
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 and interest in and to the tobacco settlement agreement.
2 (d) Beginning in fiscal year 2001-2002, $150 million
3 of the existing principal in the endowment shall be reserved
4 and accounted for within the endowment to be used solely for
5 the funding for biomedical research activities as provided in
6 s. 215.5602. The remaining principal shall be used solely as
7 the source of funding for health and human services programs
8 for children and elders as provided in subsection (5). The
9 separate account for biomedical research shall be dissolved
10 and the entire principal in the endowment shall be used
11 exclusively for health and human services programs when cures
12 have been found for tobacco-related cancer, heart, and lung
13 disease.
14 (4) ADMINISTRATION.--
15 (a) The board may invest and reinvest funds of the
16 endowment in accordance with s. 215.47 and consistent with an
17 investment plan developed by the executive director and
18 approved by the board.
19 (b) The endowment shall be managed as an annuity. The
20 investment objective shall be long-term preservation of the
21 real value of the principal and a specified regular annual
22 cash outflow for appropriation, as nonrecurring revenue. From
23 the annual cash outflow, a pro rata share shall be used solely
24 for biomedical research activities as provided in paragraph
25 (3)(d), until such time as cures are found for tobacco-related
26 cancer and heart and lung disease. Five percent of the annual
27 cash outflow dedicated to the biomedical research portion of
28 the endowment shall be reinvested and applied to that portion
29 of the endowment's principal, with the remainder to be spent
30 on biomedical research activities consistent with this
31 section. The schedule of annual cash outflow shall be included
5
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 within the investment plan adopted under paragraph (a).
2 (c) In accordance with s. 215.44, the board shall
3 include separate sections on the financial status of the
4 endowment in its annual investment report to the Legislature.
5 (d) Accountability for funds from the endowment which
6 have been appropriated to a state agency and distributed by
7 the board shall reside with the state agency. The board is not
8 responsible for the proper expenditure of or accountability
9 concerning funds from the endowment after distribution to a
10 state agency.
11 (e) Costs and fees of the board for investment
12 services shall be deducted from the earnings accruing to the
13 endowment. Fees for investment services shall be no greater
14 than fees charged to the Florida Retirement System.
15 (5) AVAILABILITY OF FUNDS; USES.--
16 (a) Funds from the endowment which are available for
17 legislative appropriation shall be transferred by the board to
18 the Department of Banking and Finance Tobacco Settlement
19 Clearing Trust Fund, created in s. 17.41, and disbursed in
20 accordance with the legislative appropriation.
21 1. Appropriations by the Legislature to the Department
22 of Health from endowment earnings from the principal set aside
23 for biomedical research shall be from a category called
24 Florida Biomedical Research Program and shall be deposited
25 into the Biomedical Research Trust Fund in the Department of
26 Health established in s. 20.435.
27 2. Appropriations by the Legislature to the Department
28 of Children and Family Services, the Department of Health, or
29 the Department of Elderly Affairs for health and human
30 services programs shall be from a category called the Lawton
31 Chiles Endowment Fund Programs and shall be deposited into
6
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 each department's respective Tobacco Settlement Trust Fund as
2 appropriated.
3 (b) In order to ensure that the expenditure of funds
4 earned from the Lawton Chiles Endowment Fund will be used for
5 the purposes intended by the Legislature, the Legislature
6 shall establish line item categories for the state agencies
7 describing the designated use of the appropriated funds as
8 provided in the General Appropriations Act.
9 (c) The secretaries of the state agencies shall
10 conduct meetings to discuss priorities for endowment funding
11 for health and human services programs for children and elders
12 before submitting their legislative budget requests to the
13 Executive Office of the Governor and the Legislature. The
14 purpose of the meetings is to gain consensus for priority
15 requests and recommended endowment funding levels for those
16 priority requests. No later than September 1 of each year, the
17 secretaries of the state agencies shall also submit their
18 concensus priority requests to the Lawton Chiles Endowment
19 Fund Advisory Council created in subsection (6).
20 (d) Subject to legislative appropriations, state
21 agencies shall use distributions from the endowment to enhance
22 or support increases in clients served or to meet increases in
23 program costs in health and human services program areas.
24 Funds distributed from the endowment may not be used to
25 supplant existing revenues.
26 (e) Notwithstanding s. 216.301 and pursuant to s.
27 216.351, all unencumbered balances of appropriations as of
28 June 30 or undisbursed balances as of December 31 shall revert
29 to the endowment's principal. Unencumbered or undisbursed
30 balances appropriated for biomedical research shall revert to
31 the principal in the separately reserved and accounted-for
7
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 portion of the endowment established for biomedical research
2 activities.
3 (f) When advised by the Revenue Estimating Conference
4 that a deficit will occur with respect to the appropriations
5 from the tobacco settlement trust funds of the state agencies
6 in any fiscal year, the Governor shall develop a plan of
7 action to eliminate the deficit. Before implementing the plan
8 of action, the Governor must comply with s. 216.177(2). In
9 developing the plan of action, the Governor shall, to the
10 extent possible, preserve legislative policy and intent, and,
11 absent any specific directions to the contrary in the General
12 Appropriations Act, any reductions in appropriations from the
13 tobacco settlement trust funds of the state agencies for a
14 fiscal year shall be prorated among the specific
15 appropriations made from all tobacco settlement trust funds of
16 the state agencies for that year.
17 (6) ADVISORY COUNCIL.--The Lawton Chiles Endowment
18 Fund Advisory Council is established for the purpose of
19 reviewing the funding priorities of the state agencies,
20 evaluating their requests against the mission and goals of the
21 agencies and legislative intent for the use of endowment
22 funds, and allowing for public input and advocacy.
23 (a) The advisory council shall consist of 14 members,
24 including:
25 1. The director of the United Way of Florida, Inc., or
26 his or her designee;
27 2. The director of the Foster Parents Association, or
28 his or her designee;
29 3. The chair of the Department of Elderly Affairs
30 Advisory Council, or his or her designee;
31 4. The president of the Florida Association of Area
8
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 Agencies on Aging, or his or her designee;
2 5. The State Long-Term Care Ombudsman, or his or her
3 designee;
4 6. The director of the Florida Pediatric Society, or
5 his or her designee;
6 7. A representative of the Guardian Ad Litem Program,
7 appointed by the Governor;
8 8. A representative of a child welfare lead agency for
9 community-based care, appointed by the Governor;
10 9. A representative of an elder care lead agency for
11 community-based care, appointed by the Governor;
12 10. A representative of a statewide child advocacy
13 organization, appointed by the Governor;
14 11. One consumer caregiver for children, appointed by
15 the Governor;
16 12. One person over the age of 60 years to represent
17 the interests of elders, appointed by the Governor;
18 13. One person under the age of 18 years to represent
19 the interests of children, appointed by the Governor; and
20 14. One consumer caregiver for a functionally impaired
21 elderly person, appointed by the Governor.
22 (b) Before November 1 of each year, the advisory
23 council shall advise the Governor and the Legislature as to
24 its recommendations with respect to the priorities submitted
25 by the secretaries of the state agencies with respect to
26 endowment funding for health and human services programs for
27 children and elders. The responsibilities of the advisory
28 council include:
29 1. Evaluating the value of programs and services
30 submitted by the state agencies as they relate to the overall
31 enhancement of services to children and elders;
9
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 2. Developing criteria and guiding principles for
2 ranking the priorities submitted by the state agencies;
3 3. Providing recommendations with respect to funding
4 levels for the programs ranked by the advisory council;
5 4. Participating in periodic evaluation of programs
6 funded by the endowment to determine the need for continued
7 funding; and
8 5. Soliciting input from child and elder advocacy
9 organizations, community stakeholders, providers, and the
10 public with respect to statewide child and elder needs and the
11 effectiveness of program service delivery systems.
12 (c) Members of the advisory council shall serve
13 without compensation, but may receive reimbursement as
14 provided in s. 112.061 for per diem and travel expenses
15 incurred in the performance of their official duties. The
16 Department of Children and Family Services shall provide staff
17 and other administrative assistance reasonably necessary to
18 assist the advisory council in carrying out its
19 responsibilities. Administrative costs of the advisory council
20 shall be charged equally to endowment funds deposited in the
21 Department of Children and Family Services and the Department
22 of Elderly Affairs Tobacco Settlement Trust Funds.
23 Section 4. Section 215.5602, Florida Statutes, is
24 amended to read:
25 215.5602 Florida Biomedical Research Program.--
26 (1) There is established within the Department of
27 Health the Florida Biomedical Research Program funded by the
28 proceeds of the Lawton Chiles Endowment Fund pursuant to s.
29 215.5601 s. 215.5601(4). The purpose of the Florida Biomedical
30 Research Program is to provide an annual and perpetual source
31 of funding in order to support research initiatives that
10
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 address the health care problems of Floridians in the areas of
2 tobacco-related cancer, cardiovascular disease, stroke, and
3 pulmonary disease. The long-term goals of the program are to:
4 (a) Improve the health of Floridians by researching
5 better prevention, diagnoses, and treatments for cancer,
6 cardiovascular disease, stroke, and pulmonary disease.
7 (b) Expand the foundation of biomedical knowledge
8 relating to the prevention, diagnosis, and treatment of
9 diseases related to tobacco use, including cancer,
10 cardiovascular disease, stroke, and pulmonary disease.
11 (c) Improve the quality of the state's academic health
12 centers by bringing the advances of biomedical research into
13 the training of physicians and other health care providers.
14 (d) Increase the state's per capita funding for
15 biomedical research by undertaking new initiatives in public
16 health and biomedical research that will attract additional
17 funding from outside the state.
18 (e) Stimulate economic activity in the state in areas
19 related to biomedical research, such as the research and
20 production of pharmaceuticals, biotechnology, and medical
21 devices.
22 (2) Funds appropriated for the Florida Biomedical
23 Research Program shall be used exclusively for the award of
24 grants and fellowships as established in this section; for
25 research relating to the prevention, diagnosis, and treatment
26 of diseases related to tobacco use, including cancer,
27 cardiovascular disease, stroke, and pulmonary disease; and for
28 expenses incurred in the administration of this section.
29 (3) There is created within the Department of Health
30 the Biomedical Research Advisory Council.
31 (a) The council shall consist of nine members,
11
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 including: the chief executive officer of the Florida Division
2 of the American Cancer Society, or a designee; the chief
3 executive officer of the Florida/Puerto Rico Affiliate of the
4 American Heart Association, or a designee; and the chief
5 executive officer of the American Lung Association of Florida,
6 or a designee. The Governor shall appoint the remaining six
7 members of the council, as follows:
8 1. Two members with expertise in the field of
9 biomedical research.
10 2. One member with expertise in the field of
11 behavioral or social research.
12 3. One member from a professional medical
13 organization.
14 4. One member from a research university in the state.
15 5. One member representing the general population of
16 the state.
17
18 In making his or her appointments, the Governor shall select
19 primarily, but not exclusively, Floridians with biomedical and
20 lay expertise in the general areas of cancer, cardiovascular
21 disease, stroke, and pulmonary disease. The Governor's
22 appointments shall be for a 3-year term and shall reflect the
23 diversity of the state's population. A council member
24 appointed by the Governor may not serve more than two
25 consecutive terms.
26 (b) The council shall adopt internal organizational
27 procedures as necessary for its efficient organization.
28 (c) The department shall provide such staff,
29 information, and other assistance as is reasonably necessary
30 to assist the council in carrying out its responsibilities.
31 (d) Members of the council shall serve without
12
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 compensation, but may receive reimbursement as provided in s.
2 112.061 for travel and other necessary expenses incurred in
3 the performance of their official duties.
4 (4) The council shall advise the Secretary of Health
5 as to the direction and scope of the biomedical research
6 program. The responsibilities of the council may include, but
7 are not limited to:
8 (a) Providing advice on program priorities and
9 emphases.
10 (b) Providing advice on the overall program budget.
11 (c) Participating in periodic program evaluation.
12 (d) Assisting in the development of guidelines to
13 ensure fairness, neutrality, and adherence to the principles
14 of merit and quality in the conduct of the program.
15 (e) Assisting in the development of appropriate
16 linkages to nonacademic entities, such as voluntary
17 organizations, health care delivery institutions, industry,
18 government agencies, and public officials.
19 (f) Developing criteria and standards for the award of
20 research grants.
21 (g) Developing administrative procedures relating to
22 solicitation, review, and award of research grants and
23 fellowships, to ensure an impartial, high-quality peer review
24 system.
25 (h) Developing and supervising research peer review
26 panels.
27 (i) Reviewing reports of peer review panels and making
28 recommendations for research grants and fellowships.
29 (j) Developing and providing oversight regarding
30 mechanisms for the dissemination of research results.
31 (5)(a) Applications for biomedical research funding
13
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 under the program may be submitted from any university or
2 established research institute in the state. All qualified
3 investigators in the state, regardless of institution
4 affiliation, shall have equal access and opportunity to
5 compete for the research funding.
6 (b) Grants and fellowships shall be awarded by the
7 Secretary of Health, after consultation with the council, on
8 the basis of scientific merit, as determined by an open
9 competitive peer review process that ensures objectivity,
10 consistency, and high quality. The following types of
11 applications shall be considered for funding:
12 1. Investigator-initiated research grants.
13 2. Institutional research grants.
14 3. Predoctoral and postdoctoral research fellowships.
15 (6) To ensure that all proposals for research funding
16 are appropriate and are evaluated fairly on the basis of
17 scientific merit, the Secretary of Health, in consultation
18 with the council, shall appoint a peer review panel of
19 independent, scientifically qualified individuals to review
20 the scientific content of each proposal and establish its
21 scientific priority score. The priority scores shall be
22 forwarded to the council and must be considered in determining
23 which proposals shall be recommended for funding.
24 (7) The council and the peer review panel shall
25 establish and follow rigorous guidelines for ethical conduct
26 and adhere to a strict policy with regard to conflict of
27 interest. A No member of the council or panel may not shall
28 participate in any discussion or decision with respect to a
29 research proposal by any firm, entity, or agency with which
30 the member is associated as a member of the governing body or
31 as an employee, or with which the member has entered into a
14
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 contractual arrangement. Meetings of the council and the peer
2 review panels shall be subject to the provisions of chapter
3 119, s. 286.011, and s. 24, Art. I of the State Constitution.
4 (8) The department may contract on a competitive-bid
5 basis with an appropriate entity to administer the program.
6 Administrative expenses may not exceed 15 percent of the total
7 funds available to the program in any given year.
8 (9) The department, after consultation with the
9 council, may adopt rules as necessary to implement this
10 section.
11 (10) The council shall submit an annual progress
12 report on the state of biomedical research in this state to
13 the Governor, the Secretary of Health, the President of the
14 Senate, and the Speaker of the House of Representatives by
15 February 1. The report must include:
16 (a) A list of research projects supported by grants or
17 fellowships awarded under the program.
18 (b) A list of recipients of program grants or
19 fellowships.
20 (c) A list of publications in peer reviewed journals
21 involving research supported by grants or fellowships awarded
22 under the program.
23 (d) The total amount of biomedical research funding
24 currently flowing into the state.
25 (e) New grants for biomedical research which were
26 funded based on research supported by grants or fellowships
27 awarded under the program.
28 (f) Progress in the prevention, diagnosis, and
29 treatment of diseases related to tobacco use, including
30 cancer, cardiovascular disease, stroke, and pulmonary disease.
31 Section 5. There is appropriated $25,000 each to the
15
10:22 AM 04/27/01 s1286c1c-08j01
SENATE AMENDMENT
Bill No. CS for SB 1286
Amendment No. ___ Barcode 724374
1 Department of Children and Family Services and the Department
2 of Elderly Affairs from Lawton Chiles endowment funds
3 deposited into each department's Tobacco Settlement Trust Fund
4 to pay for administrative costs associated with the Lawton
5 Chiles Endowment Fund Advisory Council established in section
6 215.5601, Florida Statutes.
7 Section 6. This act shall take effect July 1, 2001.
8
9
10 ================ T I T L E A M E N D M E N T ===============
11 And the title is amended as follows:
12 Delete everything before the enacting clause
13
14 and insert:
15 A bill to be entitled
16 An act relating to the Lawton Chiles Endowment
17 Fund; amending ss. 17.41, 20.435, F.S.;
18 conforming statutory cross-references; amending
19 s. 215.5601, F.S.; providing legislative intent
20 to provide funds for the support of public
21 health and biomedical research; revising
22 procedures for the administration of the
23 endowment fund; revising provisions concerning
24 the availability and use of funds from the
25 endowment; providing for a portion of
26 unappropriated funds to be deposited into the
27 endowment fund; establishing an advisory
28 council; amending s. 215.5602, F.S.; providing
29 for public health and biomedical research;
30 providing an appropriation; providing an
31 effective date.
16
10:22 AM 04/27/01 s1286c1c-08j01