| 1 | A bill to be entitled |
| 2 | An act relating to the Black Business Loan Program; |
| 3 | amending s. 288.7102, F.S.; revising the recertification |
| 4 | and audit periods for eligible recipients of the Black |
| 5 | Business Loan Program; authorizing existing recipients to |
| 6 | submit certain information to the Office of Tourism, |
| 7 | Trade, and Economic Development instead of financial |
| 8 | audits under certain circumstances; authorizing recipients |
| 9 | to redress audit findings within a specified period; |
| 10 | providing term of and revising requirements for funding |
| 11 | agreements between recipients and the office; revising the |
| 12 | entities with whom the office must consult before adopting |
| 13 | rules; revising limits on the use of funds for technical |
| 14 | support to black business enterprises and direct |
| 15 | administrative costs; conforming provisions; reenacting s. |
| 16 | 288.7094(2), F.S., relating to black business investment |
| 17 | corporations, to incorporate changes made by the act in a |
| 18 | reference thereto; providing an effective date. |
| 19 |
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| 20 | Be It Enacted by the Legislature of the State of Florida: |
| 21 |
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| 22 | Section 1. Section 288.7102, Florida Statutes, is amended |
| 23 | to read: |
| 24 | 288.7102 Black Business Loan Program.- |
| 25 | (1) The Black Business Loan Program is established in the |
| 26 | Office of Tourism, Trade, and Economic Development. Under the |
| 27 | program, the office shall annually certify eligible recipients |
| 28 | for a period of 5 years, recertify existing eligible recipients |
| 29 | once every 5 years, and subsequently disburse funds annually or |
| 30 | as appropriated by the Legislature, through such eligible |
| 31 | recipients, to black business enterprises that cannot obtain |
| 32 | capital through conventional lending institutions but that could |
| 33 | otherwise compete successfully in the private sector. |
| 34 | (2) The office shall establish an application and annual |
| 35 | certification process for entities seeking funds to participate |
| 36 | in providing loans, loan guarantees, or investments in black |
| 37 | business enterprises pursuant to the Florida Black Business |
| 38 | Investment Act. The office shall process all applications and |
| 39 | recertifications submitted by June 1 on or before July 31 of the |
| 40 | same calendar year. |
| 41 | (3) If the Black Business Loan Program is appropriated any |
| 42 | funding in a fiscal year, the office shall distribute an equal |
| 43 | amount of the appropriation, calculated as the total annual |
| 44 | appropriation divided by the total number of program recipients |
| 45 | certified on or before July 31 of that fiscal year. |
| 46 | (4) To be eligible to receive funds and provide loans, |
| 47 | loan guarantees, or investments under this section, a recipient |
| 48 | must: |
| 49 | (a) Be a corporation registered in the state. |
| 50 | (b) For an existing recipient during the 1st through 4th |
| 51 | years of the recipient's recertification period, annually submit |
| 52 | to the office a financial audit or compilation of the |
| 53 | recipient's financial statement information for the most |
| 54 | recently completed fiscal year and a copy of the office's most |
| 55 | recent letter certifying the recipient as qualified for the |
| 56 | award of funds. |
| 57 | (c) For an existing recipient during the 5th year of the |
| 58 | recipient's recertification period, submit to the office a |
| 59 | recertification application and a financial audit performed by |
| 60 | an independent certified public account for the most recently |
| 61 | completed fiscal year, which audit does not reveal any material |
| 62 | weaknesses or instances of material noncompliance that the |
| 63 | recipient does not substantially redress within 60 days after |
| 64 | receipt of the audit report. |
| 65 | (d)(c) For a new recipient: |
| 66 | 1. Demonstrate that its board of directors includes |
| 67 | citizens of the state experienced in the development of black |
| 68 | business enterprises. |
| 69 | 2. Demonstrate that the recipient has a business plan that |
| 70 | allows the recipient to operate in a manner consistent with ss. |
| 71 | 288.707-288.714 and the rules of the office. |
| 72 | 3. Demonstrate that the recipient has the technical skills |
| 73 | to analyze and evaluate applications by black business |
| 74 | enterprises for loans, loan guarantees, or investments. |
| 75 | 4. Demonstrate that the recipient has established viable |
| 76 | partnerships with public and private funding sources, economic |
| 77 | development agencies, and workforce development and job referral |
| 78 | networks. |
| 79 | 5. Demonstrate that the recipient can provide a private |
| 80 | match equal to 20 percent of the amount of funds provided by the |
| 81 | office. |
| 82 | (e)(d) For an existing or new recipient, agree to maintain |
| 83 | the recipient's books and records relating to funds received by |
| 84 | the office according to generally accepted accounting principles |
| 85 | and in accordance with the requirements of s. 215.97(7) and to |
| 86 | make those books and records available to the office for |
| 87 | inspection upon reasonable notice. |
| 88 | (5) Each eligible recipient must meet the provisions of |
| 89 | ss. 288.707-288.714, the terms of the agreement contract between |
| 90 | the recipient and the office, and any other applicable state or |
| 91 | federal laws. An entity may not receive funds under ss. 288.707- |
| 92 | 288.714 unless the entity meets annual certification |
| 93 | requirements. |
| 94 | (6) Upon approval by the office and Before release of the |
| 95 | funds as provided in this section, the office shall issue a |
| 96 | letter certifying the eligible recipient applicant as qualified |
| 97 | for an award. The office and the eligible recipient applicant |
| 98 | shall enter into an annual agreement that sets forth the |
| 99 | conditions for award of the funds. The term of any agreement |
| 100 | between the office and an eligible recipient may not exceed 1 |
| 101 | year. The agreement must include the total amount of funds |
| 102 | awarded; the performance conditions that must be met once the |
| 103 | funding is has been awarded, including, but not limited to, |
| 104 | compliance with all of the requirements of this section for |
| 105 | eligible recipients of funds under this section; and sanctions |
| 106 | for failure to meet performance conditions, including any |
| 107 | provisions to recover awards. The agreement may not require any |
| 108 | reporting of or obligation for appropriated funds beyond the 1- |
| 109 | year term of the agreement, except that appropriated funds |
| 110 | remaining unexpended at the end of the 1-year agreement must be |
| 111 | reported until the funds are expended. |
| 112 | (7) The office, in consultation with the presidents of the |
| 113 | black business investment corporations board, shall adopt rules |
| 114 | pursuant to ss. 120.536(1) and 120.54 to implement this section. |
| 115 | (8) A black business investment corporation certified by |
| 116 | the office as an eligible recipient under this section is |
| 117 | authorized to use funds appropriated for the Black Business Loan |
| 118 | Program in any of the following forms: |
| 119 | (a) Purchases of stock, preferred or common, voting or |
| 120 | nonvoting; however, no more than 40 percent of the funds may be |
| 121 | used for direct investments in black business enterprises; |
| 122 | (b) Loans or loan guarantees, with or without recourse, in |
| 123 | either a subordinated or priority position; or |
| 124 | (c) Technical support to black business enterprises, not |
| 125 | to exceed 9 percent of the funds received, and direct |
| 126 | administrative costs, not to exceed 27 12 percent of the funds |
| 127 | received. |
| 128 | (9) It is the intent of the Legislature that if any one |
| 129 | type of investment mechanism authorized in subsection (8) is |
| 130 | held to be invalid, all other valid mechanisms remain available. |
| 131 | (10) All loans, loan guarantees, and investments, and any |
| 132 | income related thereto, shall be used to carry out the public |
| 133 | purpose of ss. 288.707-288.714, which is to develop black |
| 134 | business enterprises. This subsection does not preclude a |
| 135 | reasonable profit for the participating black business |
| 136 | investment corporation or for return of equity developed to the |
| 137 | state and participating financial institutions upon any |
| 138 | distribution of the assets or excess income of the investment |
| 139 | corporation. |
| 140 | Section 2. For the purpose of incorporating the amendment |
| 141 | made by this act to section 288.7102, Florida Statutes, in a |
| 142 | reference thereto, subsection (2) of section 288.7094, Florida |
| 143 | Statutes, is reenacted to read: |
| 144 | 288.7094 Black business investment corporations.- |
| 145 | (2) A black business investment corporation that meets the |
| 146 | requirements of s. 288.7102(4) is eligible to participate in the |
| 147 | Black Business Loan Program and shall receive priority |
| 148 | consideration by the Office of Tourism, Trade, and Economic |
| 149 | Development for participation in the program. |
| 150 | Section 3. This act shall take effect July 1, 2011. |