Bill No. HB 7135
Amendment No. 578381
Senate House

1Representative Mayfield offered the following:
3     Amendment (with title amendment)
4     Between lines 1345 and 1346, insert:
5Section 24.  Present paragraphs (a) through (n) of
6subsection (2) of section 288.1089, Florida Statutes, are
7redesignated as paragraphs (b) through (o), respectively, and a
8new paragraph (a) is added to that subsection, subsections (3),
9(5), (6), and (7) of that section are amended, and paragraph (d)
10is added to subsection (4) of that section, to read:
11288.1089  Innovation Incentive Program.--
12     (1)  The Innovation Incentive Program is created within the
13Office of Tourism, Trade, and Economic Development to ensure
14that sufficient resources are available to allow the state to
15respond expeditiously to extraordinary economic opportunities
16and to compete effectively for high-value research and
17development and innovation business projects.
18     (2)  As used in this section, the term:
19     (a)  "Alternative and renewable energy" means electrical,
20mechanical, or thermal energy produced from a method that uses
21one or more of the following fuels or energy sources: ethanol,
22cellulosic ethanol, biobutanol, biodiesel, biomass, biogas,
23hydrogen fuel cells, ocean energy, hydrogen, solar, hydro, wind,
24or geothermal.
25     (3)  To be eligible for consideration for an innovation
26incentive award, an innovation business or research and
27development entity, or alternative and renewable energy project
28must submit a written application to Enterprise Florida, Inc.,
29before making a decision to locate new operations in this state
30or expand an existing operation in this state. The application
31must include, but not be limited to:
32     (a)  The applicant's federal employer identification
33number, unemployment account number, and state sales tax
34registration number. If such numbers are not available at the
35time of application, they must be submitted to the office in
36writing prior to the disbursement of any payments under this
38     (b)  The location in this state at which the project is
39located or is to be located.
40     (c)  A description of the type of business activity,
41product, or research and development undertaken by the
42applicant, including six-digit North American Industry
43Classification System codes for all activities included in the
45     (d)  The applicant's projected investment in the project.
46     (e)  The total investment, from all sources, in the
48     (f)  The number of net new full-time equivalent jobs in
49this state the applicant anticipates having created as of
50December 31 of each year in the project and the average annual
51wage of such jobs.
52     (g)  The total number of full-time equivalent employees
53currently employed by the applicant in this state, if
55     (h)  The anticipated commencement date of the project.
56     (i)  A detailed explanation of why the innovation incentive
57is needed to induce the applicant to expand or locate in the
58state and whether an award would cause the applicant to locate
59or expand in this state.
60     (j)  If applicable, an estimate of the proportion of the
61revenues resulting from the project that will be generated
62outside this state.
63     (4)  To qualify for review by the office, the applicant
64must, at a minimum, establish the following to the satisfaction
65of Enterprise Florida, Inc., and the office:
66     (d)  For an alternative and renewable energy project in
67this state, the project must:
68     1.  Demonstrate a plan for significant collaboration with
69an institution of higher education;
70     2.  Provide the state, at a minimum, a break-even return on
71investment within a 20-year period;
72     3.  Include matching funds provided by the applicant or
73other available sources. This requirement may be waived if the
74office and the department determine that the merits of the
75individual project or the specific circumstances warrant such
77     4.  Be located in this state;
78     5.  Provide jobs that pay an estimated annual average wage
79that equals at least 130 percent of the average private-sector
80wage. The average wage requirement may be waived if the office
81and the commission determine that the merits of the individual
82project or the specific circumstances warrant such action; and
83     6.  Meet one of the following criteria:
84     a.  Result in the creation of at least 35 direct, new jobs
85at the business.
86     b.  Have an activity or product that uses feedstock or
87other raw materials grown or produced in this state.
88     c.  Have a cumulative investment of at least $50 million
89within a 5-year period.
90     d.  Address the technical feasibility of the technology,
91and the extent to which the proposed project has been
92demonstrated to be technically feasible based on pilot project
93demonstrations, laboratory testing, scientific modeling, or
94engineering or chemical theory that supports the proposal.
95     e.  Include innovative technology and the degree to which
96the project or business incorporates an innovative new
97technology or an innovative application of an existing
99     f.  Include production potential and the degree to which a
100project or business generates thermal, mechanical, or electrical
101energy by means of a renewable energy resource that has
102substantial long-term production potential. The project must, to
103the extent possible, quantify annual production potential in
104megawatts or kilowatts.
105     g.  Include and address energy efficiency and the degree to
106which a project demonstrates efficient use of energy, water, and
107material resources.
108     h.  Include project management and the ability of
109management to administer a complete the business project.
110     (5)  Enterprise Florida, Inc., shall evaluate proposals for
111innovation incentive awards and transmit recommendations for
112awards to the office. Enterprise Florida, Inc., shall solicit
113comments and recommendations from the Florida Energy and Climate
114Commission for alternative and renewable energy project
115proposals. Such evaluation and recommendation must include, but
116need not be limited to:
117     (a)  A description of the project, its required facilities,
118and the associated product, service, or research and development
119associated with the project.
120     (b)  The percentage of match provided for the project.
121     (c)  The number of full-time equivalent jobs that will be
122created by the project, the total estimated average annual wages
123of such jobs, and the types of business activities and jobs
124likely to be stimulated by the project.
125     (d)  The cumulative investment to be dedicated to the
126project within 5 years and the total investment expected in the
127project if more than 5 years.
128     (e)  The projected economic and fiscal impacts on the local
129and state economies relative to investment.
130     (f)  A statement of any special impacts the project is
131expected to stimulate in a particular business sector in the
132state or regional economy or in the state's universities and
133community colleges.
134     (g)  A statement of any anticipated or proposed
135relationships with state universities.
136     (h)  A statement of the role the incentive is expected to
137play in the decision of the applicant to locate or expand in
138this state.
139     (i)  A recommendation and explanation of the amount of the
140award needed to cause the applicant to expand or locate in this
142     (j)  A discussion of the efforts and commitments made by
143the local community in which the project is to be located to
144induce the applicant's location or expansion, taking into
145consideration local resources and abilities.
146     (k)  A recommendation for specific performance criteria the
147applicant would be expected to achieve in order to receive
148payments from the fund and penalties or sanctions for failure to
149meet or maintain performance conditions.
150     (l)  For a research and development facility project:
151     1.  A description of the extent to which the project has
152the potential to serve as catalyst for an emerging or evolving
154     2.  A description of the extent to which the project has or
155could have a long-term collaborative research and development
156relationship with one or more universities or community colleges
157in this state.
158     3.  A description of the existing or projected impact of
159the project on established clusters or targeted industry
161     4.  A description of the project's contribution to the
162diversity and resiliency of the innovation economy of this
164     5.  A description of the project's impact on special needs
165communities, including, but not limited to, rural areas,
166distressed urban areas, and enterprise zones.
167     (6)  In consultation with Enterprise Florida, Inc., the
168office may negotiate the proposed amount of an award for any
169applicant meeting the requirements of this section. In
170negotiating such award, the office shall consider the amount of
171the incentive needed to cause the applicant to locate or expand
172in this state in conjunction with other relevant applicant
173impact and cost information and analysis as described in this
174section. Particular emphasis shall be given to the potential for
175the project to stimulate additional private investment and high-
176quality employment opportunities in the area.
177     (7)  Upon receipt of the evaluation and recommendation from
178Enterprise Florida, Inc., and from the Florida Energy and
179Climate Commission for alternative and renewable energy project
180proposals, the director shall recommend to the Governor the
181approval or disapproval of an award. In recommending approval of
182an award, the director shall include proposed performance
183conditions that the applicant must meet in order to obtain
184incentive funds and any other conditions that must be met before
185the receipt of any incentive funds. The Governor shall consult
186with the President of the Senate and the Speaker of the House of
187Representatives before giving approval for an award.
188(a) Upon approval of an award for a research and
189development project or an innovation business project, the
190Executive Office of the Governor shall release the funds
191pursuant to the legislative consultation and review requirements
192set forth in s. 216.177.
193(b) Upon approval of an award for an alternative and
194renewable energy project, the Executive Office of the Governor
195shall release the funds pursuant to the legislative consultation
196and review requirements set forth in s. 216.177, with the
197exception that upon written notice from either the chair or the
198vice chair of the Legislative Budget Commission or the President
199of the Senate or the Speaker of the House of Representatives
200that the award exceeds the delegated authority of Executive
201Office of the Governor or is contrary to legislative policy and
202intent, the Governor shall void such action until the
203Legislative Budget Commission or the Legislature addresses the
205     (8)  Upon approval by the Governor and release of the funds
206as set forth in subsection (7), the director shall issue a
207letter certifying the applicant as qualified for an award. The
208office and the applicant shall enter into an agreement that sets
209forth the conditions for payment of incentives. The agreement
210must include the total amount of funds awarded; the performance
211conditions that must be met to obtain the award or portions of
212the award, including, but not limited to, net new employment in
213the state, average wage, and total cumulative investment;
214demonstration of a baseline of current service and a measure of
215enhanced capability; the methodology for validating performance;
216the schedule of payments; and sanctions for failure to meet
217performance conditions, including any clawback provisions.
218     (9)  Enterprise Florida, Inc., shall assist the office in
219validating the performance of an innovation business or research
220and development facility that has received an award. At the
221conclusion of the innovation incentive award agreement, or its
222earlier termination, Enterprise Florida, Inc., shall, within 90
223days, report the results of the innovation incentive award to
224the Governor, the President of the Senate, and the Speaker of
225the House of Representatives.
226(10)  Enterprise Florida, Inc., shall develop business ethics
227standards based on appropriate best industry practices which
228shall be applicable to all award recipients. The standards shall
229address ethical duties of business enterprises, fiduciary
230responsibilities of management, and compliance with the laws of
231this state. Enterprise Florida, Inc., may collaborate with the
232State University System in reviewing and evaluating appropriate
233business ethics standards. Such standards shall be provided to
234the Governor, the President of the Senate, and the Speaker of
235the House of Representatives by December 31, 2006. An award
236agreement entered into on or after December 31, 2006, shall
237require a recipient to comply with the business ethics standards
238developed pursuant to this section.
T I T L E  A M E N D M E N T
245     Remove line 111 and insert:
246contract; amending s. 288.1089, F.S.; defining the term
247"alternative and renewable energy"; detailing the conditions for
248an alternative and renewable energy project to be eligible for
249an innovation incentive award; amending s. 316.0741, F.S.;
250requiring all hybrid

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