HOUSE AMENDMENT Bill No. HB 1E CS
1	CHAMBER ACTION
2	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