HB 925

1
A bill to be entitled
2An act relating to the Black Business Loan Program;
3amending s. 288.7102, F.S.; revising the recertification
4and audit periods for eligible recipients of the Black
5Business Loan Program; authorizing existing recipients to
6submit certain information to the Office of Tourism,
7Trade, and Economic Development instead of financial
8audits under certain circumstances; authorizing recipients
9to redress audit findings within a specified period;
10providing term of and revising requirements for funding
11agreements between recipients and the office; revising the
12entities with whom the office must consult before adopting
13rules; revising limits on the use of funds for technical
14support to black business enterprises and direct
15administrative costs; conforming provisions; reenacting s.
16288.7094(2), F.S., relating to black business investment
17corporations, to incorporate changes made by the act in a
18reference thereto; providing an effective date.
19
20Be It Enacted by the Legislature of the State of Florida:
21
22     Section 1.  Section 288.7102, Florida Statutes, is amended
23to read:
24     288.7102  Black Business Loan Program.-
25     (1)  The Black Business Loan Program is established in the
26Office of Tourism, Trade, and Economic Development. Under the
27program, the office shall annually certify eligible recipients
28for a period of 5 years, recertify existing eligible recipients
29once every 5 years, and subsequently disburse funds annually or
30as appropriated by the Legislature, through such eligible
31recipients, to black business enterprises that cannot obtain
32capital through conventional lending institutions but that could
33otherwise compete successfully in the private sector.
34     (2)  The office shall establish an application and annual
35certification process for entities seeking funds to participate
36in providing loans, loan guarantees, or investments in black
37business enterprises pursuant to the Florida Black Business
38Investment Act. The office shall process all applications and
39recertifications submitted by June 1 on or before July 31 of the
40same calendar year.
41     (3)  If the Black Business Loan Program is appropriated any
42funding in a fiscal year, the office shall distribute an equal
43amount of the appropriation, calculated as the total annual
44appropriation divided by the total number of program recipients
45certified on or before July 31 of that fiscal year.
46     (4)  To be eligible to receive funds and provide loans,
47loan guarantees, or investments under this section, a recipient
48must:
49     (a)  Be a corporation registered in the state.
50     (b)  For an existing recipient during the 1st through 4th
51years of the recipient's recertification period, annually submit
52to the office a financial audit or compilation of the
53recipient's financial statement information for the most
54recently completed fiscal year and a copy of the office's most
55recent letter certifying the recipient as qualified for the
56award of funds.
57     (c)  For an existing recipient during the 5th year of the
58recipient's recertification period, submit to the office a
59recertification application and a financial audit performed by
60an independent certified public account for the most recently
61completed fiscal year, which audit does not reveal any material
62weaknesses or instances of material noncompliance that the
63recipient does not substantially redress within 60 days after
64receipt of the audit report.
65     (d)(c)  For a new recipient:
66     1.  Demonstrate that its board of directors includes
67citizens of the state experienced in the development of black
68business enterprises.
69     2.  Demonstrate that the recipient has a business plan that
70allows the recipient to operate in a manner consistent with ss.
71288.707-288.714 and the rules of the office.
72     3.  Demonstrate that the recipient has the technical skills
73to analyze and evaluate applications by black business
74enterprises for loans, loan guarantees, or investments.
75     4.  Demonstrate that the recipient has established viable
76partnerships with public and private funding sources, economic
77development agencies, and workforce development and job referral
78networks.
79     5.  Demonstrate that the recipient can provide a private
80match equal to 20 percent of the amount of funds provided by the
81office.
82     (e)(d)  For an existing or new recipient, agree to maintain
83the recipient's books and records relating to funds received by
84the office according to generally accepted accounting principles
85and in accordance with the requirements of s. 215.97(7) and to
86make those books and records available to the office for
87inspection upon reasonable notice.
88     (5)  Each eligible recipient must meet the provisions of
89ss. 288.707-288.714, the terms of the agreement contract between
90the recipient and the office, and any other applicable state or
91federal laws. An entity may not receive funds under ss. 288.707-
92288.714 unless the entity meets annual certification
93requirements.
94     (6)  Upon approval by the office and Before release of the
95funds as provided in this section, the office shall issue a
96letter certifying the eligible recipient applicant as qualified
97for an award. The office and the eligible recipient applicant
98shall enter into an annual agreement that sets forth the
99conditions for award of the funds. The term of any agreement
100between the office and an eligible recipient may not exceed 1
101year. The agreement must include the total amount of funds
102awarded; the performance conditions that must be met once the
103funding is has been awarded, including, but not limited to,
104compliance with all of the requirements of this section for
105eligible recipients of funds under this section; and sanctions
106for failure to meet performance conditions, including any
107provisions to recover awards. The agreement may not require any
108reporting of or obligation for appropriated funds beyond the 1-
109year term of the agreement, except that appropriated funds
110remaining unexpended at the end of the 1-year agreement must be
111reported until the funds are expended.
112     (7)  The office, in consultation with the presidents of the
113black business investment corporations board, shall adopt rules
114pursuant to ss. 120.536(1) and 120.54 to implement this section.
115     (8)  A black business investment corporation certified by
116the office as an eligible recipient under this section is
117authorized to use funds appropriated for the Black Business Loan
118Program in any of the following forms:
119     (a)  Purchases of stock, preferred or common, voting or
120nonvoting; however, no more than 40 percent of the funds may be
121used for direct investments in black business enterprises;
122     (b)  Loans or loan guarantees, with or without recourse, in
123either a subordinated or priority position; or
124     (c)  Technical support to black business enterprises, not
125to exceed 9 percent of the funds received, and direct
126administrative costs, not to exceed 27 12 percent of the funds
127received.
128     (9)  It is the intent of the Legislature that if any one
129type of investment mechanism authorized in subsection (8) is
130held to be invalid, all other valid mechanisms remain available.
131     (10)  All loans, loan guarantees, and investments, and any
132income related thereto, shall be used to carry out the public
133purpose of ss. 288.707-288.714, which is to develop black
134business enterprises. This subsection does not preclude a
135reasonable profit for the participating black business
136investment corporation or for return of equity developed to the
137state and participating financial institutions upon any
138distribution of the assets or excess income of the investment
139corporation.
140     Section 2.  For the purpose of incorporating the amendment
141made by this act to section 288.7102, Florida Statutes, in a
142reference thereto, subsection (2) of section 288.7094, Florida
143Statutes, is reenacted to read:
144     288.7094  Black business investment corporations.-
145     (2)  A black business investment corporation that meets the
146requirements of s. 288.7102(4) is eligible to participate in the
147Black Business Loan Program and shall receive priority
148consideration by the Office of Tourism, Trade, and Economic
149Development for participation in the program.
150     Section 3.  This act shall take effect July 1, 2011.


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