HB 255

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
4	recertification and audit periods for eligible
5	recipients of the Black Business Loan Program;
6	authorizing existing recipients to submit certain
7	information to the Department of Economic Opportunity
8	instead of financial audits under certain
9	circumstances; authorizing recipients to redress audit
10	findings within a specified period; providing term of
11	and revising requirements for funding agreements
12	between recipients and the department; revising the
13	entities with whom the department must consult before
14	adopting rules; revising limits on the use of funds
15	for technical support to black business enterprises
16	and direct administrative costs; conforming
17	provisions; reenacting s. 288.7094(2), F.S., relating
18	to black business investment corporations, to
19	incorporate changes made by the act in a reference
20	thereto; providing an effective date.
21
22	Be It Enacted by the Legislature of the State of Florida:
23
24	Section 1.  Section 288.7102, Florida Statutes, is amended
25	to read:
26	288.7102  Black Business Loan Program.-
27	(1)  The Black Business Loan Program is established in the
28	department, which shall annually certify eligible recipients for
29	a period of 5 years, recertify existing eligible recipients once
30	every 5 years, and subsequently disburse funds annually or as
31	appropriated by the Legislature, through such eligible
32	recipients, to black business enterprises that cannot obtain
33	capital through conventional lending institutions but that could
34	otherwise compete successfully in the private sector.
35	(2)  The department shall establish an application and
36	annual certification process for entities seeking funds to
37	participate in providing loans, loan guarantees, or investments
38	in black business enterprises pursuant to the Florida Black
39	Business Investment Act. The department shall process all
40	applications and recertifications submitted by June 1 on or
41	before July 31 of the same calendar year.
42	(3)  If the Black Business Loan Program is appropriated any
43	funding in a fiscal year, the department shall distribute an
44	equal amount of the appropriation, calculated as the total
45	annual appropriation divided by the total number of program
46	recipients certified on or before July 31 of that fiscal year.
47	(4)  To be eligible to receive funds and provide loans,
48	loan guarantees, or investments under this section, a recipient
49	must:
50	(a)  Be a corporation registered in the state.
51	(b)  For an existing recipient during the 1st through 4th
52	years of the recipient's recertification period, annually submit
53	to the department a financial audit or compilation of the
54	recipient's financial statement information for the most
55	recently completed fiscal year and a copy of the department's
56	most recent letter certifying the recipient as qualified for the
57	award of funds.
58	(c)  For an existing recipient during the 5th year of the
59	recipient's recertification period, submit to the department a
60	recertification application and a financial audit performed by
61	an independent certified public accountant for the most recently
62	completed fiscal year, which audit does not reveal any material
63	weaknesses or instances of material noncompliance that the
64	recipient does not substantially redress within 60 days after
65	receipt of the audit report.
66	(d)(c)  For a new recipient:
67	1.  Demonstrate that its board of directors includes
68	citizens of the state experienced in the development of black
69	business enterprises.
70	2.  Demonstrate that the recipient has a business plan that
71	allows the recipient to operate in a manner consistent with this
72	section and the rules of the department.
73	3.  Demonstrate that the recipient has the technical skills
74	to analyze and evaluate applications by black business
75	enterprises for loans, loan guarantees, or investments.
76	4.  Demonstrate that the recipient has established viable
77	partnerships with public and private funding sources, economic
78	development agencies, and workforce development and job referral
79	networks.
80	5.  Demonstrate that the recipient can provide a private
81	match equal to 20 percent of the amount of funds provided by the
82	department.
83	(e)(d)  For an existing or new recipient, agree to maintain
84	the recipient's books and records relating to funds received by
85	the department according to generally accepted accounting
86	principles and in accordance with the requirements of s.
87	215.97(7) and to make those books and records available to the
88	department for inspection upon reasonable notice.
89	(5)  Each eligible recipient must meet the requirements of
90	this section, the terms of the agreement contract between the
91	recipient and the department, and any other applicable state or
92	federal laws. An entity may not receive funds unless the entity
93	meets annual certification requirements.
94	(6)  Upon approval by the department and Before release of
95	the funds as provided in this section, the department shall
96	issue a letter certifying the eligible recipient applicant as
97	qualified for an award. The department and the eligible
98	recipient applicant shall enter into an annual agreement that
99	sets forth the conditions for award of the funds. The term of
100	any agreement between the department and an eligible recipient
101	may not exceed 1 year. The agreement must include the total
102	amount of funds awarded; the performance conditions that must be
103	met once the funding is has been awarded, including, but not
104	limited to, compliance with all of the requirements of this
105	section for eligible recipients of funds under this section; and
106	sanctions for failure to meet performance conditions, including
107	any provisions to recover awards. The agreement may not require
108	any reporting of or obligation for appropriated funds beyond the
109	1-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 department, in consultation with the presidents of
113	the black business investment corporations board, shall adopt
114	rules pursuant to ss. 120.536(1) and 120.54 to implement this
115	section.
116	(8)  A black business investment corporation certified by
117	the department as an eligible recipient under this section is
118	authorized to use funds appropriated for the Black Business Loan
119	Program in any of the following forms:
120	(a)  Purchases of stock, preferred or common, voting or
121	nonvoting; however, no more than 40 percent of the funds may be
122	used for direct investments in black business enterprises;
123	(b)  Loans or loan guarantees, with or without recourse, in
124	either a subordinated or priority position; or
125	(c)  Administrative costs and technical support to black
126	business enterprises, which combined may not to exceed 27 9
127	percent of the funds received, and direct administrative costs,
128	not to exceed 12 percent of the funds received.
129	(9)  It is the intent of the Legislature that if any one
130	type of investment mechanism authorized in subsection (8) is
131	held to be invalid, all other valid mechanisms remain available.
132	(10)  All loans, loan guarantees, and investments, and any
133	income related thereto, shall be used to carry out the public
134	purpose to develop black business enterprises. This subsection
135	does not preclude a reasonable profit for the participating
136	black business investment corporation or for return of equity
137	developed to the state and participating financial institutions
138	upon any distribution of the assets or excess income of the
139	investment 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 department for participation in the
149	program.
150	Section 3.  This act shall take effect July 1, 2012.

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