HOUSE AMENDMENT
Bill No. HB 1E CS
   
1 CHAMBER ACTION
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Senate House
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12          Representative Johnson offered the following:
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14          Amendment (with title amendment)
15          Remove the entire body, and insert:
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17          Section 1. Section 288.955, Florida Statutes, is created
18    to read:
19          288.955 Scripps Florida Funding Corporation.--
20          (1) DEFINITIONS.--As used in this section, the term:
21          (a) "Contract" means the contract executed between the
22    corporation and the grantee under this section.
23          (b) "Corporation" means the Scripps Florida Funding
24    Corporation created under this section.
25          (c) "Grantee" means The Scripps Research Institute, a not-
26    for-profit public benefit corporation, or a division,
27    subsidiary, affiliate, or entity formed by The Scripps Research
28    Institute to establish a state-of-the-art biomedical research
29    institution and campus in this state.
30          (2) CREATION.--
31          (a) There is created a not-for-profit corporation known as
32    the Scripps Florida Funding Corporation, which shall be
33    registered, incorporated, organized, and operated under chapter
34    617. All provisions of chapter 617 apply to the corporation,
35    except if the provisions of chapter 617 conflict with the
36    provisions of this section, this section shall control.
37          (b) The corporation is not a unit or entity of state
38    government. However, the corporation is subject to the
39    provisions of s. 24, Art. I of the State Constitution and
40    chapter 119, relating to public records, and the provisions of
41    chapter 286 relating to public meetings.
42          (c) The corporation must establish at least one corporate
43    office in this state and appoint a registered agent.
44          (d) The corporation shall hire or contract for all staff
45    necessary to the proper execution of its powers and duties
46    within the funds appropriated to implement this section and
47    shall require that all officers, directors, and employees of the
48    corporation comply with the code of ethics for public officers
49    and employees under part III of chapter 112. In no case may the
50    corporation expend more than $300,000 in the first year and
51    $200,000 per year thereafter for staffing and necessary
52    administrative expenditures using funds appropriated to
53    implement this section.
54          (e) The Office of Tourism, Trade, and Economic Development
55    shall provide administrative support to the corporation as
56    requested by the corporation. In the event of the dissolution of
57    the corporation, the office shall be the corporation’s successor
58    in interest and shall assume all rights, duties, and obligations
59    of the corporation under any contract to which the corporation
60    is then a party and under law.
61          (3) PURPOSE.--The corporation shall be organized to
62    receive, hold, invest, administer, and disburse funds
63    appropriated by the Legislature for the establishment and
64    operation of a state-of-the-art biomedical research institution
65    and campus in this state by The Scripps Research Institute. The
66    corporation shall safeguard the state's commitment of financial
67    support by ensuring that, as a condition for the receipt of
68    these funds, the grantee meets its contractual obligations. In
69    this manner, the corporation shall facilitate and oversee the
70    state goal and public purpose of providing financial support for
71    the institution and campus in order to expand the amount and
72    prominence of biomedical research conducted in this state,
73    provide an inducement for high-technology businesses to locate
74    in this state, create educational opportunities through access
75    to and partnerships with the institution, and promote improved
76    health care through the scientific outcomes of the institution.
77          (4) BOARD; MEMBERSHIP.--The corporation shall be governed
78    by a board of directors.
79          (a) The board of directors shall consist of nine voting
80    members, of whom the Governor shall appoint three, the President
81    of the Senate shall appoint three, and the Speaker of the House
82    of Representatives shall appoint three. The director of the
83    Office of Tourism, Trade, and Economic Development or the
84    director's designee shall serve as an ex-officio, nonvoting
85    member of the board of directors.
86          (b)1. Each member of the board of directors shall serve
87    for a term of 4 years, except that initially the Governor, the
88    President of the Senate, and the Speaker of the House of
89    Representatives each shall appoint one member for a term of 1
90    year, one member for a term of 2 years, and one member for a
91    term of 4 years to achieve staggered terms among the members of
92    the board. A member is not eligible for reappointment to the
93    board, except, however, that a member appointed to an initial
94    term of 1 year or 2 years may be reappointed for an additional
95    term of 4 years. The Governor, the President of the Senate, and
96    the Speaker of the House of Representatives shall make their
97    initial appointments to the board by November 15, 2003.
98          2. Members of the board of directors appointed by the
99    President of the Senate and the Speaker of the House of
100    Representatives shall serve at the pleasure of the appointing
101    officer.
102          (c) The Governor, the President of the Senate, or the
103    Speaker of the House of Representatives, respectively, shall
104    fill a vacancy on the board of directors, according to who
105    appointed the member whose vacancy is to be filled or whose term
106    has expired. A vacancy that occurs before the scheduled
107    expiration of the term of the member shall be filled for the
108    remainder of the unexpired term.
109          (d) Each member of the board of directors who is not
110    otherwise required to file financial disclosure under s. 8, Art.
111    II of the State Constitution or s. 112.3144 shall file
112    disclosure of financial interests under s. 112.3145.
113          (e) A person may not be appointed to the board of
114    directors if he or she has had any direct interest in any
115    contract, franchise, privilege, or other benefit granted by The
116    Scripps Research Institute or any of its affiliate organizations
117    within 5 years before appointment. A person appointed to the
118    board of directors must agree to refrain from having any direct
119    interest in any contract, franchise, privilege, or other benefit
120    granted by The Scripps Research Institute or any of its
121    affiliate organizations during the term of his or her
122    appointment and for 5 years after the termination of such
123    appointment. It is a misdemeanor of the first degree, punishable
124    as provided in s. 775.082 or s. 775.083, for a person to accept
125    appointment to the board of directors in violation of this
126    paragraph or to accept an interest in any contract, franchise,
127    privilege, or other benefit granted by the institution or
128    affiliate within 5 years after the termination of his or her
129    service on the board.
130          (f) Each member of the board of directors shall serve
131    without compensation but shall receive travel and per diem
132    expenses as provided in s. 112.061.
133          (g) Each member of the board of directors is accountable
134    for the proper performance of the duties of his or her office,
135    and each member owes a fiduciary duty to the people of the state
136    to ensure that funds provided in furtherance of this section are
137    disbursed and used as prescribed by law and contract.
138          (5) ORGANIZATION; MEETINGS.--
139          (a)1. The board of directors shall annually elect a
140    chairperson and a vice chairperson from among the board's
141    members. The members, by an affirmative vote of at least five of
142    the nine members, may remove a member from the position of
143    chairperson or vice chairperson prior to the expiration of his
144    or her term as chairperson or vice chairperson. His or her
145    successor shall be elected to serve for the balance of the
146    removed chairperson's or vice chairperson's term.
147          2. The chairperson is responsible for ensuring that
148    records are kept of the proceedings of the board of directors,
149    and is the custodian of all books, documents, and papers filed
150    with the board, the minutes of meetings of the board, and the
151    official seal of the corporation.
152          (b)1. The board of directors shall meet upon the call of
153    the chairperson or at the request of a majority of the members,
154    but no less than three times per calendar year.
155          2. A majority of the voting members of the board of
156    directors constitutes a quorum. Except as otherwise provided in
157    this section, the board may take official action by a majority
158    vote of the members present at any meeting at which a quorum is
159    present. Members may not vote by proxy.
160          3. A member of the board may participate in a meeting of
161    the board by telephone or videoconference through which each
162    member may hear every other member.
163          (6) POWERS AND DUTIES.--The corporation is organized to
164    receive, hold, invest, administer, and disburse funds
165    appropriated by the Legislature in support of this section and
166    to disburse any income generated from the investment of these
167    funds consistent with the purpose and provisions of this
168    section. In addition to the powers and duties prescribed in
169    chapter 617 and the articles and bylaws adopted under that
170    chapter, the corporation:
171          (a) May make and enter into contracts and assume any other
172    functions that are necessary to carry out the provisions of this
173    section.
174          (b) May make expenditures, from funds provided by this
175    state, including any necessary administrative expenditures
176    consistent with its powers.
177          (c) May enter into leases and contracts for the purchase
178    of real property and hold notes, mortgages, guarantees, or
179    security agreements to secure the performance of obligations of
180    the grantee under the contract.
181          (d) May perform all acts and things necessary or
182    convenient to carry out the powers expressly granted in this
183    section and a contract entered into between the corporation and
184    the grantee.
185          (e) May indemnify, and purchase and maintain insurance on
186    behalf of, directors, officers, and employees of the corporation
187    against any personal liability or accountability.
188          (f) Shall disburse funds pursuant to the provisions of
189    this section and a contract entered into between the corporation
190    and the grantee.
191          (g) Shall receive and review reports and financial
192    documentation provided by the grantee to ensure compliance with
193    the provisions of this section and provisions of the contract.
194          (h) Shall prepare an annual report as prescribed in
195    subsection (14).
196          (7) INVESTMENT OF FUNDS.--The corporation must enter into
197    an agreement with the State Board of Administration under which
198    funds received by the corporation from the Office of Tourism,
199    Trade, and Economic Development which are not disbursed to the
200    grantee shall be invested by the State Board of Administration
201    on behalf of the corporation. Funds shall be invested in
202    suitable instruments authorized under s. 215.47 and specified in
203    investment guidelines established and agreed to by the State
204    Board of Administration and the corporation.
205          (8) CONTRACT.--
206          (a) No later than January 30, 2004, the corporation shall
207    negotiate and execute a contract with the grantee for a term of
208    20 years; however, the time to execute the contract may be
209    extended for up to 45 days by majority vote of the board of
210    directors of the corporation. Such contract shall govern the
211    disbursement and use of funds under this section. If no contract
212    has been executed by such date, all unexpended funds shall
213    revert and be returned to the General Revenue Fund of the state.
214    The corporation may not execute the contract unless the contract
215    is approved by the affirmative vote of at least seven of the
216    nine members of the board of directors. At least 14 days before
217    execution of the contract, The Scripps Research Institute must
218    submit to the board, the Governor, the President of the Senate,
219    and the Speaker of the House of Representatives an
220    organizational plan, in a form and manner prescribed by the
221    board, for the establishment of a state-of-the-art biomedical
222    research institution and campus in this state, and the board
223    must submit a copy of the proposed contract to the Governor, the
224    President of the Senate, and the Speaker of the House of
225    Representatives.
226          (b) The contract, at a minimum, must contain provisions:
227          1. Specifying the procedures and schedules that govern the
228    disbursement of funds under this section and specifying the
229    conditions or deliverables that the grantee must satisfy before
230    the release of each disbursement.
231          2. Requiring the grantee to submit to the corporation a
232    business plan in a form and manner prescribed by the
233    corporation.
234          3. Prohibiting the grantee from establishing other
235    biomedical science or research facilities in any state other
236    than this state or California for a period of 12 years from the
237    commencement of the contract or until payment in full of the
238    total payment amount required under subsection (12), whichever
239    occurs first. Nothing in this subparagraph shall prohibit the
240    grantee from establishing or engaging in normal collaborative
241    activities with other organizations.
242          4. Governing the ownership of or security interests in
243    real property and personal property, including, but not limited
244    to, research equipment, obtained through the financial support
245    of state or local government, including a provision that in the
246    event of a breach of the contract or in the event the grantee
247    ceases operations in this state, such property purchased with
248    state funds shall revert to the state and such property
249    purchased with local funds shall revert to the local governing
250    authority.
251          5. Requiring the grantee to be an equal opportunity
252    employer.
253          6. Requiring the grantee to maintain a policy of awarding
254    preference in employment to residents of this state, as defined
255    by law, except for professional scientific staff positions
256    requiring a doctoral degree, post-doctoral training positions,
257    and graduate student positions.
258          7. Requiring the grantee to maintain a policy of making
259    purchases from vendors in this state, to the extent it is cost-
260    effective and scientifically sound.
261          8. Requiring the grantee to work collaboratively with the
262    state’s public and private postsecondary educational
263    institutions and not-for-profit research institutions.
264          9. Requiring the grantee to participate in employee-
265    recruitment activities at a minimum of five public or private
266    universities or community colleges in this state every year
267    during the duration of the contract.
268          10. Requiring the grantee to use the Internet-based job-
269    listing system of the Agency for Workforce Innovation in
270    advertising employment opportunities.
271          11. Requiring the grantee to establish accredited science
272    degree programs.
273          12. Requiring the grantee to establish internship programs
274    to create learning opportunities for educators and secondary and
275    postsecondary students, including graduate and doctoral
276    students.
277          13. Requiring the grantee to submit data to the
278    corporation on its activities and performance during each fiscal
279    year and to provide to the corporation an annual accounting of
280    the expenditure of funds disbursed under this section.
281          14. Authorizing the grantee, when feasible, to use
282    information submitted by it to the Federal Government or to
283    other organizations awarding research grants to the grantee to
284    help meet reporting requirements imposed under this section or
285    the contract, if the information satisfies the reporting
286    standards of this section and the contract.
287          15. Requiring the grantee during the first 7 years of the
288    contract to create 545 positions and to acquire associated
289    research equipment for the grantee's facility in this state, and
290    pay for related maintenance of the equipment, in a total amount
291    of not less than $45 million.
292          16. Requiring the grantee to progress in the creation of
293    the total number of jobs prescribed in subparagraph 15. on the
294    following schedule: at least 38 positions in the first year, 168
295    positions in the second year, 280 positions in the third year,
296    367 positions in the fourth year, 436 positions in the fifth
297    year, 500 positions in the sixth year, and 545 positions in the
298    seventh year. The board may allow the grantee to deviate
299    downward from such employee levels by 25 percent in any year, to
300    allow the grantee flexibility in achieving the objectives set
301    forth in the business plan provided to the corporation; however,
302    the grantee must have no fewer than 545 positions by the end of
303    the seventh year.
304          17. Requiring the grantee’s expenditure of funds to be
305    consistent with legislative intent as provided in this act.
306          18. Requiring the grantee to agree to compliance standards
307    under which the corporation can review relevant records to
308    ensure the grantee’s financial and operational compliance with
309    the provisions of this section and the contract.
310          19. Requiring the grantee to allow the corporation to
311    retain an independent certified public accountant licensed in
312    this state pursuant to chapter 473 to inspect the records of the
313    grantee in order to audit the expenditure of funds disbursed to
314    the grantee. The independent certified public accountant may not
315    disclose any confidential or proprietary scientific information
316    of the grantee.
317          20. Requiring the grantee to purchase liability insurance
318    and governing the coverage level of such insurance.
319          (c) An amendment to the contract is not effective unless
320    it is approved by the affirmative vote of at least seven of the
321    nine members of the board of directors.
322          (9) PERFORMANCE EXPECTATIONS.--In addition to the
323    provisions prescribed in subsection (8), the contract between
324    the corporation and the grantee shall include a provision that
325    the grantee, in cooperation with the Office of Tourism, Trade,
326    and Economic Development, shall report to the corporation on
327    performance expectations that reflect the aspirations of the
328    Governor and the Legislature for the benefits accruing to this
329    state as a result of the funds appropriated pursuant to this
330    section. These shall include, but are not limited to,
331    performance expectations addressing:
332          (a) The average salaries paid.
333          (b) The number and dollar value of research grants
334    obtained from the Federal Government or sources other than this
335    state.
336          (c) The percentage of total research dollars received by
337    The Scripps Research Institute from sources other than this
338    state which is used to conduct research activities by the
339    grantee in this state.
340          (d) The number or value of patents obtained by the
341    grantee.
342          (e) The number or value of licensing agreements executed
343    by the grantee.
344          (f) The extent to which research conducted by the grantee
345    results in commercial applications.
346          (g) The number of agreements reached and maintained with
347    colleges and universities in this state.
348          (h) The number of collaborative partnerships established
349    and maintained with businesses in this state.
350          (i) The total amount of funding received by the grantee
351    from sources other than the State of Florida.
352          (j) The number or value of spinoff businesses created in
353    this state as a result of commercialization of the research of
354    the grantee.
355          (k) The number or value of businesses recruited to this
356    state by the grantee.
357          (l) The development of policies to promote supplier
358    diversity using the guidelines of the Office of Supplier
359    Diversity under s. 287.09451; compliance with ordinances,
360    including, but not limited to, small-business county ordinances,
361    applicable to the biomedical research institution and campus;
362    and the designation of a representative to coordinate with the
363    Office of Supplier Diversity.
364         
365          The contract shall require the grantee to provide information to
366    the corporation on the progress in meeting these performance
367    expectations on an annual basis.
368          (10) DISBURSEMENT CONDITIONS.--In addition to the
369    provisions prescribed in subsection (8), the contract between
370    the corporation and the grantee shall include disbursement
371    conditions that must be satisfied by the grantee as a condition
372    for the continued disbursement of funds under this section. A
373    determination that a condition has not been met for purposes of
374    disbursement shall be made by affirmative vote of at least five
375    of the nine members of the board of directors of the
376    corporation. These disbursement conditions shall be negotiated
377    between the corporation and the grantee and may not be designed
378    to impede the ability of the grantee to attain full operational
379    status. The disbursement conditions may be appropriately varied
380    as to timeframes, numbers, values, and percentages. The
381    disbursement conditions shall include, but are not limited to,
382    the following:
383          (a) Beginning 18 months after the grantee’s occupancy of
384    its permanent facility in this state, the grantee will annually
385    obtain $100,000 of nonstate funding for each full-time
386    equivalent tenured-track faculty member employed at the
387    facility.
388          (b) No later than 3 years after the grantee’s occupancy of
389    its permanent facility in this state, the grantee will apply to
390    the relevant accrediting agency for accreditation of its
391    graduate program in this state.
392          (c) The grantee will create jobs as scheduled in its
393    contract with the corporation.
394          (d) The grantee will purchase equipment for its facility
395    in this state as scheduled in its contract with the corporation.
396          (e) No later than 18 months after occupying its permanent
397    facility in this state, the grantee will establish a program for
398    qualified graduate students from universities in this state
399    permitting them access to the facility for doctoral, thesis-
400    related research.
401          (f) No later than 18 months after occupancy of its
402    permanent facility in this state, the grantee will establish a
403    summer internship for high school students.
404          (g) No later than 3 years after occupancy of its permanent
405    facility in this state, the grantee will establish a research
406    program for middle school and high school teachers.
407          (h) No later than 18 months after occupancy of its
408    permanent facility in this state, the grantee will establish a
409    program for adjunct professors.
410          (i) No later than 6 months after commissioning its high-
411    throughput technology, the grantee will establish a program to
412    allow open access for qualified science projects.
413          (j) Beginning June 2004, the grantee will commence
414    collaborative efforts with the public and private universities
415    of this state and will continue cooperative collaboration
416    through the term of the agreement.
417          (k) Beginning 18 months after the grantee's occupancy of
418    its permanent facility in this state, the grantee will establish
419    an annual seminar series featuring a review of the science work
420    done by the grantee and its collaborators at the facility.
421          (l) Beginning June 2004, the grantee will commence
422    collaboration efforts with the Office of Tourism, Trade, and
423    Economic Development by complying with reasonable requests by
424    the office for cooperation in the office’s economic development
425    efforts in the biomedical/biotechnical industry. No later than
426    July 2004, the grantee will designate a person who shall be
427    charged with assisting in these collaborative efforts.
428          (11) DISBURSEMENTS.--
429          (a) The corporation shall disburse funds to the grantee
430    over a period of 7 calendar years starting in the calendar year
431    beginning January 1, 2004, under the terms and conditions of the
432    contract. The corporation shall complete disbursement of the
433    total amount of funds payable to the grantee under the contract
434    no later than December 31, 2010, unless the grantee fails to
435    satisfy the terms and conditions of the contract. Any funds of
436    the corporation that are not disbursed by December 31, 2010,
437    shall be returned to the state and deposited into the Biomedical
438    Research Trust Fund of the Department of Health.
439          (b) The contract shall provide for a reduction or
440    elimination of funding in any year if:
441          1. The grantee is no longer fully operating in this state;
442          2. The grantee has failed to commit in writing to maintain
443    full operations in the state for the succeeding year; or
444          3. The grantee commits a material default or breach of the
445    contract, as defined and governed by the contract. Determination
446    of material default or breach of contract shall require the
447    affirmative vote of at least seven of the nine members of the
448    board.
449          (c) Each disbursement by the corporation to the grantee
450    under this section is conditioned upon the affirmative approval
451    of at least five of the nine members of the board of directors
452    and upon demonstration by the grantee that it has met the
453    particular contractual deliverables that are the bases for that
454    disbursement.
455          (12) REINVESTMENT OF ECONOMIC STIMULUS FUNDS IN THE
456    BIOMEDICAL RESEARCH TRUST FUND.--The contract between the
457    corporation and the grantee shall require the grantee to
458    reinvest a portion of its revenues as follows:
459          (a) The grantee shall reinvest 15 percent of the net
460    royalty revenues, including the revenues from the sale of stock,
461    received by The Scripps Research Institute from the licensing or
462    transfer of inventions, methods, processes, and other patentable
463    discoveries conceived or reduced to practice using the grantee's
464    Florida facilities or Florida employees, in whole or in part,
465    and to which the grantee becomes entitled during the 20 years
466    following the effective date of the contract between the
467    corporation and the grantee. For purposes of this paragraph, the
468    term “net royalty revenues” means all royalty revenues less the
469    cost of obtaining, maintaining, and enforcing related patent and
470    intellectual property rights, both foreign and domestic.
471    Reinvestment payments under this paragraph shall commence no
472    later than 6 months after the grantee has received the final
473    disbursement under the contract and shall continue until the
474    maximum reinvestment has been paid.
475          (b) The grantee shall reinvest 15 percent of the gross
476    revenues it receives from “naming opportunities” associated with
477    any facility it builds in this state. For purposes of this
478    section, the term “naming opportunities” includes charitable
479    donations from any person in consideration for the right to have
480    all or a portion of the facility named for or in the memory of
481    any person, living or dead, or for any entity. The obligation to
482    make reinvestment payments under this section shall commence
483    upon the execution of the contract between the corporation and
484    the grantee.
485         
486          All reinvestment payments made pursuant to this section shall be
487    remitted to the state for deposit in the Biomedical Research
488    Trust Fund, or if such fund has ceased to exist, in another
489    trust fund that supports biomedical research, as determined by
490    law. The maximum reinvestment required of the grantee pursuant
491    to this subsection may not exceed $200,000,000. At such time as
492    the reinvestment payments equal $155,000,000 or the contract
493    expires, whichever is earlier, the board of directors of the
494    corporation shall determine whether the performance expectations
495    and performance measures have been met. If the board determines
496    that the performance expectations and performance measures have
497    been met, the amount of $200,000,000 shall be reduced to
498    $155,000,000. The grantee shall annually submit to the
499    corporation a schedule of the shares of stock held by the
500    grantee as payment of a royalty referred to in paragraph (a) and
501    report on any trades or activity concerning such stock until
502    such time as all revenues from the sale of stock have been
503    reinvested. The grantee’s obligations under this subsection
504    shall survive the expiration or termination of the contract
505    between the corporation and the grantee.
506          (13) USE OF FUNDS.--
507          (a) Funds appropriated in furtherance of this section may
508    not be disbursed or expended for activities that are not
509    primarily related to the establishment or operation of the
510    grantee in this state, except upon approval of the affirmative
511    vote of at least seven of the nine members of the board of
512    directors.
513          (b) No funds appropriated in furtherance of this section
514    may be used for the purpose of lobbying any branch or agency of
515    state government or any political subdivision of this state.
516          (14) ANNUAL REPORT.--By December 1 of each year, the
517    corporation shall prepare a report of the activities and
518    outcomes under this section for the preceding fiscal year. The
519    report, at a minimum, must include:
520          (a) A description of the activities of the corporation in
521    managing and enforcing the contract with the grantee.
522          (b) An accounting of the amount of funds disbursed during
523    the preceding fiscal year to the grantee.
524          (c) An accounting of expenditures by the grantee during
525    the fiscal year of funds disbursed under this section.
526          (d) Information on the number and salary level of jobs
527    created by the grantee, including the number and salary level of
528    jobs created for residents of this state.
529          (e) Information on the amount and nature of economic
530    activity generated through the activities of the grantee.
531          (f) An assessment of factors affecting the progress toward
532    achieving the projected biotech industry cluster associated with
533    the grantee’s operations, as projected by economists on behalf
534    of the Executive Office of the Governor.
535          (g) A compliance and financial audit of the accounts and
536    records of the corporation at the end of the preceding fiscal
537    year conducted by an independent certified public accountant in
538    accordance with rules of the Auditor General.
539          (h) A description of the status of the performance
540    expectations under subsection (9) and the disbursement
541    conditions under subsection (10).
542         
543          The corporation shall submit the report to the Governor, the
544    President of the Senate, and the Speaker of the House of
545    Representatives.
546          (15) PROGRAM EVALUATION.--
547          (a) Before January 1, 2007, the Office of Program Policy
548    Analysis and Government Accountability shall conduct a
549    performance audit of the Office of Tourism, Trade, and Economic
550    Development and the corporation relating to the provisions of
551    this section. The audit shall assess the implementation and
552    outcomes of activities under this section. At a minimum, the
553    audit shall address:
554          1. Performance of the Office of Tourism, Trade, and
555    Economic Development in disbursing funds appropriated under this
556    section.
557          2. Performance of the corporation in managing and
558    enforcing the contract with the grantee.
559          3. Compliance by the corporation with the provisions of
560    this section and the provisions of the contract.
561          4. Economic activity generated through funds disbursed
562    under the contract.
563          (b) Before January 1, 2010, the Office of Program Policy
564    Analysis and Government Accountability shall update the report
565    required under this subsection. In addition to addressing the
566    items prescribed in paragraph (a), the updated report shall
567    include a recommendation on whether the Legislature should
568    retain the statutory authority for the corporation.
569         
570          A report of each audit's findings and recommendations shall be
571    submitted to the Governor, the President of the Senate, and the
572    Speaker of the House of Representatives.
573          (16) LIABILITY.--
574          (a) The appropriation or disbursement of funds under this
575    section does not constitute a debt, liability, or obligation of
576    the State of Florida, any political subdivision thereof, or the
577    corporation, or a pledge of the faith and credit of the state or
578    of any such political subdivision.
579          (b) The appropriation, disbursement, or receipt of funds
580    under this section does not subject the State of Florida, any
581    political subdivision thereof, or the corporation to liability
582    related to the research activities and research products of the
583    grantee.
584          (17) FORCE MAJEURE.-—Notwithstanding any other provisions
585    of this section, if the grantee is prevented from timely
586    achieving any deadlines set forth in this section due to its
587    inability to occupy its permanent facility in this state within
588    2 years after entering into the memorandum of agreement pursuant
589    to s. 403.973 as a result of permitting delays and related
590    administrative or judicial proceedings, acts of God, labor
591    disturbances, or other similar events beyond the control of the
592    grantee, the deadline shall be extended by the number of days by
593    which the grantee was delayed in commencing its occupancy of its
594    permanent facility in this state. In no event shall the
595    extension be for more than 4 years. Upon occurrence of a force
596    majeure event, the corporation shall continue to fund the
597    grantee at a level that permits the corporation to sustain its
598    current level of operations until the force majeure event ceases
599    and the grantee is able to resume the contract schedule which
600    governs disbursement.
601          Section 2. Paragraph (h) of subsection (1) of section
602    20.435, Florida Statutes, is amended to read:
603          20.435 Department of Health; trust funds.--
604          (1) The following trust funds are hereby created, to be
605    administered by the Department of Health:
606          (h) Biomedical Research Trust Fund.
607          1. Funds to be credited to the trust fund shall consist of
608    funds deposited pursuant to ss. s. 215.5601 and 288.955. Funds
609    shall be used for the purposes of the James and Esther King
610    Biomedical Research Program as specified in s. 215.5602. The
611    trust fund is exempt from the service charges imposed by s.
612    215.20.
613          2. Notwithstanding the provisions of s. 216.301 and
614    pursuant to s. 216.351, any balance in the trust fund at the end
615    of any fiscal year shall remain in the trust fund at the end of
616    the year and shall be available for carrying out the purposes of
617    the trust fund.
618          3. The trust fund shall, unless terminated sooner, be
619    terminated on July 1, 2004.
620          Section 3. Subsections (3), (7), and (15) of section
621    403.973, Florida Statutes, are amended to read:
622          403.973 Expedited permitting; comprehensive plan
623    amendments.--
624          (3)(a) The Governor, through the office, shall direct the
625    creation of regional permit action teams, for the purpose of
626    expediting review of permit applications and local comprehensive
627    plan amendments submitted by:
628          1. Businesses creating at least 100 jobs, or
629          2. Businesses creating at least 50 jobs if the project is
630    located in an enterprise zone, or in a county having a
631    population of less than 75,000 or in a county having a
632    population of less than 100,000 which is contiguous to a county
633    having a population of less than 75,000, as determined by the
634    most recent decennial census, residing in incorporated and
635    unincorporated areas of the county, or
636          (b) On a case-by-case basis and at the request of a county
637    or municipal government, the office may certify as eligible for
638    expedited review a project not meeting the minimum job creation
639    thresholds but creating a minimum of 10 jobs. The recommendation
640    from the governing body of the county or municipality in which
641    the project may be located is required in order for the office
642    to certify that any project is eligible for expedited review
643    under this paragraph. When considering projects that do not meet
644    the minimum job creation thresholds but that are recommended by
645    the governing body in which the project may be located, the
646    office shall consider economic impact factors that include, but
647    are not limited to:
648          1. The proposed wage and skill levels relative to those
649    existing in the area in which the project may be located;
650          2. The project's potential to diversify and strengthen the
651    area's economy;
652          3. The amount of capital investment; and
653          4. The number of jobs that will be made available for
654    persons served by the welfare transition program.
655          (c) At the request of a county or municipal government,
656    the office or a Quick Permitting County may certify projects
657    located in counties where the ratio of new jobs per participant
658    in the welfare transition program, as determined by Workforce
659    Florida, Inc., is less than one or otherwise critical, as
660    eligible for the expedited permitting process. Such projects
661    must meet the numerical job creation criteria of this
662    subsection, but the jobs created by the project do not have to
663    be high-wage jobs that diversify the state's economy.
664          (d) Projects located in a designated brownfield area are
665    eligible for the expedited permitting process.
666          (e) Projects that are designated by the local board of
667    county commissioners as a part of the state-of-the-art
668    biomedical research institution and campus to be established in
669    this state by the grantee under s. 288.955 are eligible for the
670    expedited permitting process.
671          (7) The local government shall hold a duly noticed public
672    hearing to execute a memorandum of agreement for each qualified
673    project. Notwithstanding any other provision of law, and at the
674    option of the local government, the workshop provided for in
675    subsection (6) may be conducted on the same date as the public
676    hearing held under this subsection.The memorandum of agreement
677    that a local government signs shall include a provision
678    identifying necessary local government procedures and time
679    limits that will be modified to allow for the local government
680    decision on the project within 90 days. The memorandum of
681    agreement applies to projects, on a case-by-case basis, that
682    qualify for special review and approval as specified in this
683    section. The memorandum of agreement must make it clear that
684    this expedited permitting and review process does not modify,
685    qualify, or otherwise alter existing local government
686    nonprocedural standards for permit applications, unless
687    expressly authorized by law.
688          (15)(a)Challenges to state agency action in the expedited
689    permitting process for projects processed under this section are
690    subject to the summary hearing provisions of s. 120.574, except
691    that the administrative law judge's decision, as provided in s.
692    120.574(2)(f), shall be in the form of a recommended order and
693    shall not constitute the final action of the state agency. In
694    those proceedings where the action of only one agency of the
695    state is challenged, the agency of the state shall issue the
696    final order within 10 working days of receipt of the
697    administrative law judge's recommended order. In those
698    proceedings where the actions of more than one agency of the
699    state are challenged, the Governor shall issue the final order
700    within 10 working days of receipt of the administrative law
701    judge's recommended order. The participating agencies of the
702    state may opt at the preliminary hearing conference to allow the
703    administrative law judge's decision to constitute the final
704    agency action. If a participating local government agrees to
705    participate in the summary hearing provisions of s. 120.574 for
706    purposes of review of local government comprehensive plan
707    amendments, s. 163.3184(9) and (10) apply.
708          (b) Challenges to state agency action in the expedited
709    permitting process for establishment of a state-of-the-art
710    biomedical research institution and campus in this state by the
711    grantee under s. 288.955 are subject to the same requirements as
712    challenges brought under paragraph (a), except that,
713    notwithstanding s. 120.574, summary proceedings must be
714    conducted within 30 days after a party files the motion for
715    summary hearing, regardless of whether the parties agree to the
716    summary proceeding.
717          Section 4. (1) It is the intent of the Legislature to use
718    a portion of the funds provided by the Federal Government under
719    section 401(b) of the Jobs and Growth Tax Relief Reconciliation
720    Act of 2003 for the essential governmental service of improving
721    economic opportunities available to the people of this state by
722    attracting new or expanding businesses to, and retaining
723    businesses in, the state. Additionally, the Legislature
724    recognizes that the state spends billions of dollars each year
725    to treat major illnesses such as coronary artery disease,
726    Alzheimer's disease, diabetes, autoimmune diseases, and cancer.
727    It is further the intent of the Legislature to use the funds so
728    provided to advance the essential government service of
729    improving the health of the people of this state by promoting
730    research and development for the prediction, treatment,
731    prevention, and cure of disease. Funding provided under this
732    section will serve these essential government services and help
733    accelerate the development of biomedical research and
734    development projects in the state.
735          (2) For fiscal year 2003-2004, the sum of $310 million is
736    appropriated from the General Revenue Fund to the Office of
737    Tourism, Trade, and Economic Development for the purpose of
738    funding the Scripps Florida Funding Corporation created under
739    this act in the special category Grants and Aids to the Scripps
740    Florida Funding Corporation. Notwithstanding ss. 216.181(16) and
741    216.351, Florida Statutes, the Office of Tourism, Trade, and
742    Economic Development shall disburse $300,000 to cover the
743    staffing and administrative expenses of the corporation as soon
744    as the corporation is formed. Notwithstanding ss. 216.181(16)
745    and 216.351, Florida Statutes, the remaining appropriation shall
746    be disbursed to the corporation in one lump sum upon the
747    execution of the contract between the Scripps Florida Funding
748    Corporation and the grantee, and such disbursement shall be
749    subject to a contract executed between the Office of Tourism,
750    Trade, and Economic Development and the corporation. In the
751    event the corporation and the grantee are unable to execute the
752    contract, all funds appropriated to the corporation in
753    furtherance of this act shall revert to the General Revenue
754    Fund. In the event that the contract is terminated for breach or
755    otherwise, all funds not yet disbursed to the grantee shall be
756    immediately returned to the General Revenue Fund.
757          Section 5. Effective July 1, 2004, paragraph (d) of
758    subsection (6) of section 212.20, Florida Statutes, as amended
759    by section 92 of chapter 2003-402, Laws of Florida, is amended
760    to read:
761          212.20 Funds collected, disposition; additional powers of
762    department; operational expense; refund of taxes adjudicated
763    unconstitutionally collected.--
764          (6) Distribution of all proceeds under this chapter and s.
765    202.18(1)(b) and (2)(b) shall be as follows:
766          (d) The proceeds of all other taxes and fees imposed
767    pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
768    and (2)(b) shall be distributed as follows:
769          1. In any fiscal year, the greater of $500 million, minus
770    an amount equal to 4.6 percent of the proceeds of the taxes
771    collected pursuant to chapter 201, or 5 percent of all other
772    taxes and fees imposed pursuant to this chapter or remitted
773    pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
774    monthly installments into the General Revenue Fund.
775          2. Two-tenths of one percent shall be transferred to the
776    Ecosystem Management and Restoration Trust Fund to be used for
777    water quality improvement and water restoration projects.
778          3. After the distribution under subparagraphs 1. and 2.,
779    8.814 percent of the amount remitted by a sales tax dealer
780    located within a participating county pursuant to s. 218.61
781    shall be transferred into the Local Government Half-cent Sales
782    Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to
783    be transferred pursuant to this subparagraph to the Local
784    Government Half-cent Sales Tax Clearing Trust Fund shall be
785    reduced by 0.1 percent, and the department shall distribute this
786    amount to the Public Employees Relations Commission Trust Fund
787    less $5,000 each month, which shall be added to the amount
788    calculated in subparagraph 4. and distributed accordingly.
789          4. After the distribution under subparagraphs 1., 2., and
790    3., 0.095 percent shall be transferred to the Local Government
791    Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
792    to s. 218.65.
793          5. After the distributions under subparagraphs 1., 2., 3.,
794    and 4., 2.0440 percent of the available proceeds pursuant to
795    this paragraph shall be transferred monthly to the Revenue
796    Sharing Trust Fund for Counties pursuant to s. 218.215.
797          6. After the distributions under subparagraphs 1., 2., 3.,
798    and 4., 1.3409 percent of the available proceeds pursuant to
799    this paragraph shall be transferred monthly to the Revenue
800    Sharing Trust Fund for Municipalities pursuant to s. 218.215. If
801    the total revenue to be distributed pursuant to this
802    subparagraph is at least as great as the amount due from the
803    Revenue Sharing Trust Fund for Municipalities and the Municipal
804    Financial Assistance Trust Fund in state fiscal year 1999-2000,
805    no municipality shall receive less than the amount due from the
806    Revenue Sharing Trust Fund for Municipalities and the Municipal
807    Financial Assistance Trust Fund in state fiscal year 1999-2000.
808    If the total proceeds to be distributed are less than the amount
809    received in combination from the Revenue Sharing Trust Fund for
810    Municipalities and the Municipal Financial Assistance Trust Fund
811    in state fiscal year 1999-2000, each municipality shall receive
812    an amount proportionate to the amount it was due in state fiscal
813    year 1999-2000.
814          7. Of the remaining proceeds:
815          a. In each fiscal year, the sum of $29,915,500 shall be
816    divided into as many equal parts as there are counties in the
817    state, and one part shall be distributed to each county. The
818    distribution among the several counties shall begin each fiscal
819    year on or before January 5th and shall continue monthly for a
820    total of 4 months. If a local or special law required that any
821    moneys accruing to a county in fiscal year 1999-2000 under the
822    then-existing provisions of s. 550.135 be paid directly to the
823    district school board, special district, or a municipal
824    government, such payment shall continue until such time that the
825    local or special law is amended or repealed. The state covenants
826    with holders of bonds or other instruments of indebtedness
827    issued by local governments, special districts, or district
828    school boards prior to July 1, 2000, that it is not the intent
829    of this subparagraph to adversely affect the rights of those
830    holders or relieve local governments, special districts, or
831    district school boards of the duty to meet their obligations as
832    a result of previous pledges or assignments or trusts entered
833    into which obligated funds received from the distribution to
834    county governments under then-existing s. 550.135. This
835    distribution specifically is in lieu of funds distributed under
836    s. 550.135 prior to July 1, 2000.
837          b. The department shall distribute $166,667 monthly
838    pursuant to s. 288.1162 to each applicant that has been
839    certified as a "facility for a new professional sports
840    franchise" or a "facility for a retained professional sports
841    franchise" pursuant to s. 288.1162. Up to $41,667 shall be
842    distributed monthly by the department to each applicant that has
843    been certified as a "facility for a retained spring training
844    franchise" pursuant to s. 288.1162; however, not more than
845    $208,335 may be distributed monthly in the aggregate to all
846    certified facilities for a retained spring training franchise.
847    Distributions shall begin 60 days following such certification
848    and shall continue for not more than 30 years. Nothing contained
849    in this paragraph shall be construed to allow an applicant
850    certified pursuant to s. 288.1162 to receive more in
851    distributions than actually expended by the applicant for the
852    public purposes provided for in s. 288.1162(6). However, a
853    certified applicant is entitled to receive distributions up to
854    the maximum amount allowable and undistributed under this
855    section for additional renovations and improvements to the
856    facility for the franchise without additional certification.
857          c. Beginning 30 days after notice by the Office of
858    Tourism, Trade, and Economic Development to the Department of
859    Revenue that an applicant has been certified as the professional
860    golf hall of fame pursuant to s. 288.1168 and is open to the
861    public, $166,667 shall be distributed monthly, for up to 300
862    months, to the applicant.
863          d. Beginning 30 days after notice by the Office of
864    Tourism, Trade, and Economic Development to the Department of
865    Revenue that the applicant has been certified as the
866    International Game Fish Association World Center facility
867    pursuant to s. 288.1169, and the facility is open to the public,
868    $83,333 shall be distributed monthly, for up to 168 months, to
869    the applicant. This distribution is subject to reduction
870    pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
871    made, after certification and before July 1, 2000.
872          e. The department shall distribute monthly to units of
873    local government that have been certified as owning eligible
874    convention centers pursuant to s. 288.1171 an amount equal to
875    one-half of the proceeds, as defined in paragraph (5)(a),
876    received and collected in the previous month by the department
877    under the provisions of this chapter which are generated by such
878    eligible convention centers and remitted on the sales and use
879    tax returns of eligible convention centers. The total
880    distribution to each unit of local government may not exceed $3
881    million per state fiscal year. Distributions shall begin 60 days
882    following notification of certification by the Office of
883    Tourism, Trade, and Economic Development pursuant to s. 288.1171
884    and shall continue for not more than 30 years. Distributions
885    shall be used solely to encourage and provide economic
886    development for the attraction, recruitment, and retention of
887    corporate headquarters and of high-technology, manufacturing,
888    research and development, entertainment, and tourism industries
889    as designated by the unit of local government by resolution of
890    its governing body.
891          8. All other proceeds shall remain with the General
892    Revenue Fund.
893          Section 6. Effective July 1, 2004, section 288.1171,
894    Florida Statutes, is created to read:
895          288.1171 Convention centers owned by units of local
896    government; certification as owning eligible convention centers;
897    duties.--
898          (1) The Office of Tourism, Trade, and Economic Development
899    shall serve as the state agency for screening applicants for
900    state funding pursuant to s. 212.20(6)(d)7.e. and for certifying
901    an applicant as owning an eligible convention center.
902          (2) The Office of Tourism, Trade, and Economic Development
903    shall adopt rules pursuant to ss. 120.536(1) and 120.54 for the
904    receipt and processing of applications for funding pursuant to
905    s. 212.20(6)(d)7.e.
906          (3) As used in this section, the term "eligible convention
907    center" means a publicly owned facility having exhibition space
908    in excess of 60,000 square feet, the primary function of which
909    is to host meetings, conventions, or trade shows.
910          (4) Prior to certifying an applicant as owning an eligible
911    convention center, the Office of Tourism, Trade, and Economic
912    Development must determine that:
913          (a) The unit of local government, as defined in s.
914    218.369, owns an eligible convention center.
915          (b) The convention center contains more than 60,000 square
916    feet of exhibit space.
917          (c) The unit of local government in which the convention
918    center is located has certified by resolution after a public
919    hearing that the application serves a public purpose pursuant to
920    subsection (7).
921          (d) The convention center is located in a county that is
922    levying a tourist development tax pursuant to s. 125.0104.
923          (5) Upon certification of an applicant, the Office of
924    Tourism, Trade, and Economic Development shall notify the
925    executive director of the Department of Revenue of such
926    certification by means of an official letter granting
927    certification. The Department of Revenue may not begin
928    distributing proceeds until 60 days following notice by the
929    Office of Tourism, Trade, and Economic Development that a unit
930    of local government has been certified as owning an eligible
931    convention center.
932          (6) No applicant previously certified under any provision
933    of this section who has received proceeds under such
934    certification shall be eligible for an additional certification.
935          (7) A unit of local government certified as owning an
936    eligible convention center may use proceeds provided pursuant to
937    s. 212.20(6)(d)7.e. solely to encourage and provide economic
938    development for the attraction, recruitment, and retention of
939    corporate headquarters and of high-technology, manufacturing,
940    research and development, entertainment, and tourism industries
941    as designated by the unit of local government by resolution of
942    its governing body.
943          (8) The Department of Revenue may audit as provided in s.
944    213.34 to verify that the distributions pursuant to this section
945    have been expended as required in this section. Such information
946    is subject to the confidentiality requirements of chapter 213.
947    If the Department of Revenue determines that the distributions
948    have not been expended as required by this section, it may
949    pursue recovery of such proceeds pursuant to the laws and rules
950    governing the assessment of taxes.
951          (9) Failure to use the proceeds as provided in this
952    section shall be grounds for revoking certification.
953          Section 7. There are hereby appropriated for fiscal year
954    2003-2004 the following amounts to the Office of Tourism, Trade,
955    and Economic Development for strategic economic development
956    programs and initiatives:
957          (1) The sum of $10 million from the General Revenue Fund
958    to the Quick Action Closing Fund created in s. 288.1088, Florida
959    Statutes.
960          (2) The sum of $5 million from the General Revenue Fund to
961    the entertainment industry financial incentive program created
962    in s. 288.1254, Florida Statutes.
963          (3) The sum of $3 million from the General Revenue Fund to
964    the Quick Action Closing Fund created in s. 288.1088, Florida
965    Statutes, all of which shall be used to fund projects in rural
966    communities as defined in s. 288.0656(2)(b), Florida Statutes.
967          (4) The sum of $2 million from the General Revenue Fund to
968    the Rural Infrastructure Fund created in s. 288.0655, Florida
969    Statutes.
970          (5) The sum of $7.5 million from the General Revenue Fund
971    for fixed capital outlay military base retention projects
972    allocated to the following bases: Tyndall ($2.5 million),
973    Mayport ($2.5 million), and McDill ($2.5 million).
974          (6) The sum of $10 million from the General Revenue Fund
975    for the purpose of providing one-time fixed capital outlay
976    grants for infrastructure improvements related to the National
977    High Magnetic Field Laboratory, which shall be allocated as
978    follows: the sum of $7.5 million shall be allocated to the
979    Florida State University, and the sum of $2.5 million shall be
980    allocated to the University of Florida.
981          (7) The sum of $2.5 million from the General Revenue Fund
982    to fund the first ranked fixed capital outlay project of the
983    Regional Cultural Facilities Program Rollover Priority List from
984    fiscal year 2003-2004, which was developed in accordance with
985    1T-1.001(20), Florida Administrative Code.
986          (8) The sum of $1 million from the General Revenue Fund to
987    the Mote Marine Laboratory for scientific research to prevent
988    harmful algal blooms for the purpose of enhancing Florida
989    seafood production.
990          (9) The sum of $8 million from the General Revenue Fund
991    for the purpose of providing a one-time fixed capital outlay
992    grant to the University of South Florida to acquire the Fowler
993    Avenue South site as part of its Bioengineering and Life
994    Sciences Research Park.
995          (10) The sum of $5,000 from the General Revenue Fund for
996    the purpose of developing a plan to implement the convention
997    center sales tax rebate program as established in sections 5 and
998    6.
999          Section 8. Except as otherwise provided herein, this act
1000    shall take effect upon becoming a law.
1001         
1002    ================= T I T L E A M E N D M E N T =================
1003          Remove the entire title, and insert:
1004 A bill to be entitled
1005          An act relating to economic development strategic
1006    initiatives; creating s. 288.955, F.S.; providing
1007    definitions; creating the Scripps Florida Funding
1008    Corporation to facilitate the establishment and operation
1009    of a biomedical research institution for the purposes of
1010    enhancing education and research and promoting economic
1011    development and diversity; providing for a board of
1012    directors; prohibiting conflicts of interest; providing
1013    penalties; providing powers and duties of the corporation;
1014    providing for investment of funds; requiring an operating
1015    plan; requiring the corporation and a grantee entity to
1016    enter into a contract; providing contract requirements;
1017    providing for performance expectations and disbursement
1018    conditions; providing requirements and criteria; providing
1019    for disbursement and reinvestment of funds; requiring
1020    reports, audits, and evaluations; limiting the use of
1021    funds; providing that the appropriation of funds does not
1022    constitute a debt of the state or a subdivision of the
1023    state nor does it subject the state or a subdivision to
1024    liability; providing for extension of certain deadlines in
1025    certain situations in which the grantee cannot meet
1026    contract conditions with limitations; providing for
1027    resumption of such deadlines; amending s. 20.435, F.S.;
1028    providing for additional funds to be deposited into the
1029    Biomedical Research Trust Fund; deleting a provision for
1030    future termination date of the fund; amending s. 403.973,
1031    F.S.; specifying that projects that are part of the
1032    biomedical research institution and campus are eligible
1033    for the expedited permitting process; providing for
1034    challenges to state agency action in expedited permitting
1035    related to the institution and campus; providing
1036    legislative intent with respect to creating economic
1037    opportunity and improving public health through the
1038    establishment of a biomedical research institution;
1039    amending s. 212.20, F.S.; providing for distribution of a
1040    portion of revenues from the tax on sales, use, and other
1041    transactions to specified units of local government owning
1042    eligible convention centers; creating s. 288.1171, F.S.;
1043    providing for certification of units of local government
1044    owning eligible convention centers by the Office of
1045    Tourism, Trade, and Economic Development; requiring the
1046    office to adopt specified rules; providing a definition;
1047    providing requirements for certification; providing for
1048    use of proceeds distributed to units of local government
1049    under the act; providing for audits by the Department of
1050    Revenue; providing for revocation of certification;
1051    providing appropriations; providing effective dates.
1052