Bill Text: FL S0546 | 2013 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Targeted Economic Development

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2013-04-25 - Laid on Table, companion bill(s) passed, see CS/HB 705 (Ch. 2013-120) [S0546 Detail]

Download: Florida-2013-S0546-Introduced.html

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       Florida Senate - 2013                                     SB 546
       
       
       
       By Senator Ring
       
       
       
       
       29-00156C-13                                           2013546__
    1                        A bill to be entitled                      
    2         An act relating to targeted economic development;
    3         amending s. 288.9625, F.S.; expanding the purpose of
    4         the Institute for the Commercialization of Public
    5         Research to include the commercialization of products
    6         developed by an innovation business; authorizing the
    7         institute to create corporate subsidiaries; providing
    8         conditions under which the institute may develop or
    9         accrue certain interests in companies or products;
   10         specifying conditions under which the institute may
   11         deliver and charge for services; expanding the
   12         institute’s reporting requirements to include
   13         information on assistance given to an innovation
   14         business; creating s. 288.96255, F.S.; requiring that
   15         the institute create the Florida Technology Seed
   16         Capital Fund; providing for the purpose of the fund;
   17         providing for certain administrative costs of the
   18         fund; requiring professional managers to manage the
   19         fund; providing for an investor advisory board to
   20         advise and guide the managers and to make funding
   21         recommendations; requiring the institute to administer
   22         the fund and providing criteria for its
   23         administration; providing for responsibilities of the
   24         institute; providing for an annual evaluation of the
   25         activities and results of funding; providing an
   26         effective date.
   27  
   28  Be It Enacted by the Legislature of the State of Florida:
   29  
   30         Section 1. Subsections (2), (9), (10), and paragraph (a) of
   31  subsection (11) of section 288.9625, Florida Statutes, are
   32  amended to read:
   33         288.9625 Institute for the Commercialization of Public
   34  Research.—There is established at a public university or
   35  research center in this state the Institute for the
   36  Commercialization of Public Research.
   37         (2) The purpose of the institute is to assist in the
   38  commercialization of products developed by the research and
   39  development activities of an innovation business, as defined in
   40  s. 288.1089; a publicly supported college, university, or
   41  research institute; or any other publicly supported organization
   42  in this universities and colleges, research institutes, and
   43  publicly supported organizations within the state. The institute
   44  shall operate to fulfill its purpose and in the best interests
   45  of the state. The institute:
   46         (a) Is Shall be a corporation primarily acting as an
   47  instrumentality of the state pursuant to s. 768.28(2), for the
   48  purposes of sovereign immunity;
   49         (b) Is not an agency within the meaning of s. 20.03(11);
   50         (c) Is subject to the open records and meetings
   51  requirements of s. 24, Art. I of the State Constitution, chapter
   52  119, and s. 286.011;
   53         (d) Is not subject to the provisions of chapter 287;
   54         (e) Shall be governed by the code of ethics for public
   55  officers and employees as set forth in part III of chapter 112;
   56         (f) May Is not authorized to create corporate subsidiaries;
   57         (g) Shall support existing commercialization efforts at
   58  state universities; and
   59         (h) May Shall not supplant, replace, or direct existing
   60  technology transfer operations or other commercialization
   61  programs, including incubators and accelerators.
   62         (9) The institute may shall not develop or accrue any
   63  ownership, royalty, patent, or other such rights over or
   64  interest in companies or products in the institute except in
   65  connection with financing provided directly to client companies
   66  and shall maintain the confidentiality secrecy of proprietary
   67  information.
   68         (10) The institute may shall not charge for services
   69  provided rendered to state universities and affiliated
   70  organizations, community colleges, or state agencies; however,
   71  the institute may deliver and charge for services to private
   72  companies and affiliated organizations if providing a service
   73  does not interfere with the core mission of the institute. The
   74  institute may not use its capital in support of private
   75  companies or affiliated organizations whose products were not
   76  developed by research and development activities of a publicly
   77  supported college, university, or research institute, or any
   78  other organization.
   79         (11) By December 1 of each year, the institute shall issue
   80  an annual report concerning its activities to the Governor, the
   81  President of the Senate, and the Speaker of the House of
   82  Representatives. The report shall include the following:
   83         (a) Information on any assistance and activities provided
   84  by the institute to an innovation business, as defined in s.
   85  288.1089; a publicly supported college, university, or research
   86  institute; or any other publicly supported organization assist
   87  publicly supported universities, colleges, research institutes,
   88  and other publicly supported organizations in the state.
   89         Section 2.  Section 288.96255, Florida Statutes, is created
   90  to read:
   91         288.96255 Florida Technology Seed Capital Fund; creation;
   92  duties.—
   93         (1) The Institute for the Commercialization of Public
   94  Research shall create the Florida Technology Seed Capital Fund
   95  as a corporate subsidiary. The fund shall consist of $50
   96  million. The purpose of the fund is to foster greater private
   97  sector investment funding, to encourage seed-stage investments
   98  in start-up companies, and to advise companies about how to
   99  restructure existing management, operation, or production to
  100  attract advantageous business opportunities. The proceeds of a
  101  sale of the equity held by the fund shall be returned to the
  102  fund for reinvestment.
  103         (2) The institute shall administer the Florida Technology
  104  Seed Capital Fund. Administrative costs paid out of the fund may
  105  not exceed 5 percent of the total appropriation for the program.
  106         (3) The institute shall employ professionals who have both
  107  technical and business expertise to manage fund activity. The
  108  institute shall establish an investor advisory board comprised
  109  of venture capital professionals and early-stage investors from
  110  this and other states who shall advise and guide the fund
  111  management and make funding recommendations.
  112         (4) The institute shall use a thorough and detailed process
  113  that is modeled after the best practices of the investment
  114  industry to evaluate a proposal. In order to approve a company
  115  for investment, the institute must consider if:
  116         (a) The company has a strong intellectual property
  117  position, a capable management team, readily identifiable paths
  118  to market or commercialization, significant job-growth
  119  potential, the ability to provide other sources of capital to
  120  leverage the state’s investment, and the potential to attract
  121  additional funding;
  122         (b) The company has been identified by a publicly funded
  123  research institution;
  124         (c) The start-up company operates in a targeted industry
  125  that is identified by Enterprise Florida, Inc.
  126         (d) The company has been identified by an approved private
  127  sector lead investor who has demonstrated due diligence typical
  128  of start-up investments in evaluating the potential of the
  129  company; and
  130         (e) The advisory board and fund manager have reviewed the
  131  proposal of a company and recommend it.
  132         (5) The fund may make an investment if a company is
  133  approved by the institute and:
  134         (a) The seed-stage investment has a one-to-one private
  135  sector match of investment.
  136         (b) The seed-stage investment is within the range from
  137  $50,000 to $300,000, which requires a one-to-one private-sector
  138  match.
  139         (c) For an additional seed investment, the cumulative total
  140  does not exceed $500,000 for any single company, which requires
  141  a two-to-one private-sector match.
  142         (6) The institute may:
  143         (a) Provide a company with value-added support services in
  144  the areas of business plan development and strategy, the
  145  preparation of investor presentations, and other critical areas
  146  identified by the institute to increase its chances for long
  147  term viability and success.
  148         (b) Encourage appropriate investment funds to become
  149  preapproved to match investment funds;
  150         (c) Market the attractiveness of the state as an early
  151  stage investment location; and
  152         (d) Collaborate with state economic-development
  153  organizations, national associations of seed and angel funds,
  154  and other innovation-based associations to create an enhanced
  155  state entrepreneurial ecosystem.
  156         (7) The institute shall annually evaluate the activities
  157  and results of the funding, taking into consideration that seed
  158  investment horizons span from 3 to 7 years.
  159         Section 3. This act shall take effect July 1, 2013.