Florida Senate - 2013              PROPOSED COMMITTEE SUBSTITUTE
       (Recommended by Appropriations Subcommittee on Transportation,
       Tourism, and Economic Development) Bill No. SB 224
                                Barcode 293958                          
       Proposed Committee Substitute by the Committee on Appropriations
    1                        A bill to be entitled                      
    2         An act relating to the Florida Small Business
    3         Development Center Network; amending s. 288.001, F.S.;
    4         providing a network purpose; providing definitions;
    5         requiring the statewide director and the network to
    6         operate the program in compliance with federal laws
    7         and regulations and a Board of Governors regulation;
    8         requiring the statewide director to consult with the
    9         Board of Governors, the Department of Economic
   10         Opportunity, and the network’s statewide advisory
   11         board to establish certain policies and goals;
   12         requiring the network to maintain a statewide advisory
   13         board; providing for advisory board membership;
   14         providing for terms of membership; providing for
   15         certain member reimbursement; requiring the director
   16         to develop support services; specifying support
   17         service requirements; requiring businesses that
   18         receive support services to participate in certain
   19         assessments; requiring the network to provide a match
   20         equal to certain state funding; providing criteria for
   21         the match; requiring the statewide director to
   22         coordinate with the host institution to establish a
   23         pay-per-performance incentive; providing for pay-per
   24         performance incentive funding and distribution;
   25         providing a distribution formula requirement;
   26         requiring the statewide director to coordinate with
   27         the advisory board to distribute funds for certain
   28         purposes and develop programs to distribute funds for
   29         those purposes; requiring the network to announce
   30         available funding, performance expectations, and other
   31         requirements; requiring the statewide director to
   32         present applications and recommendations to the
   33         advisory board; requiring applications approved by the
   34         advisory board to be publicly posted; providing
   35         minimum requirements for a program; prohibiting
   36         certain regional small business development centers
   37         from receiving funds; providing that match funding may
   38         not be reduced for regional small business development
   39         centers receiving additional funds; requiring the
   40         statewide director to regularly update the Board of
   41         Governors, the department, and the advisory board with
   42         certain information; requiring the statewide director,
   43         in coordination with the advisory board, to annually
   44         report certain information to the President of the
   45         Senate and the Speaker of the House of
   46         Representatives; providing an effective date.
   48  Be It Enacted by the Legislature of the State of Florida:
   50         Section 1. Section 288.001, Florida Statutes, is amended to
   51  read:
   52         288.001 The Florida Small Business Development Center
   53  Network; purpose.—
   54         (1) PURPOSE.—The Florida Small Business Development Center
   55  Network is the principal business assistance organization for
   56  small businesses in the state. The purpose of the network is to
   57  serve emerging and established for-profit, privately held
   58  businesses that maintain a place of business in the state.
   59         (2)DEFINITIONS.—As used in this section, the term:
   60         (a) “Board of Governors” is the Board of Governors of the
   61  State University System.
   62         (b) “Host institution” is the university designated by the
   63  Board of Governors to be the recipient organization in
   64  accordance with 13 C.F.R. s. 130.200.
   65         (c) “Network” means the Florida Small Business Development
   66  Center Network.
   68         (a)The network’s statewide director shall operate the
   69  network in compliance with the federal laws and regulations
   70  governing the network and the Board of Governors Regulation
   71  10.015.
   72         (b)The network’s statewide director shall consult with the
   73  Board of Governors, the department, and the network’s statewide
   74  advisory board to ensure that the network’s policies and
   75  programs align with the statewide goals of the State University
   76  System and the statewide strategic economic development plan as
   77  provided under s. 20.60.
   78         (4) STATEWIDE ADVISORY BOARD.—
   79         (a)The network shall maintain a statewide advisory board
   80  to advise, counsel, and confer with the statewide director on
   81  matters pertaining to the operation of the network.
   82         (b) The statewide advisory board shall consist of 19
   83  members from across the state. At least 12 members must be
   84  representatives of the private sector who are knowledgeable of
   85  the needs and challenges of small businesses. The members must
   86  represent various segments and industries of the economy in this
   87  state and must bring knowledge and skills to the statewide
   88  advisory board which would enhance the board’s collective
   89  knowledge of small business assistance needs and challenges. The
   90  board must include the following members:
   91         1.Three members appointed from the private sector by the
   92  President of the Senate.
   93         2.Three members appointed from the private sector by the
   94  Speaker of the House of Representatives.
   95         3.Three members appointed from the private sector by the
   96  Governor.
   97         4.Three members appointed from the private sector by the
   98  network’s statewide director.
   99         5.One member appointed by the host institution.
  100         6.The President of Enterprise Florida, Inc., or his or her
  101  designee.
  102         7.The Chief Financial Officer or his or her designee.
  103         8.The President of the Florida Chamber of Commerce or his
  104  or her designee.
  105         9.The Small Business Development Center Project Officer
  106  from the U.S. Small Business Administration at the South Florida
  107  District Office or his or her designee.
  108         10.The executive director of the National Federation of
  109  Independent Businesses, Florida, or his or her designee.
  110         11.The executive director of the Florida United Business
  111  Association or his or her designee.
  112         (c)The term of an appointed member shall be for 4 years,
  113  beginning August 1, 2013, except that at the time of initial
  114  appointments, two members appointed by the Governor, one member
  115  appointed by the President of the Senate, one member appointed
  116  by the Speaker of the House of Representatives, and one member
  117  appointed by the network’s statewide director shall be appointed
  118  for 2 years. An appointed member may be reappointed to a
  119  subsequent term. Members of the statewide advisory board may not
  120  receive compensation but may be reimbursed for per diem and
  121  travel expenses in accordance with s. 112.061.
  123         (a) The statewide director, in consultation with the
  124  advisory board, shall develop support services that are
  125  delivered through regional small business development centers.
  126  Support services must target the needs of businesses that employ
  127  fewer than 100 persons and demonstrate an assessed capacity to
  128  grow in employment or revenue.
  129         (b) Support services must include, but need not be limited
  130  to, providing information or research, consulting, educating, or
  131  assisting businesses in the following activities:
  132         1. Planning related to the start-up, operation, or
  133  expansion of a small business enterprise in this state. Such
  134  activities include providing guidance on business formation,
  135  structure, management, registration, regulation, and taxes.
  136         2. Developing and implementing strategic or business plans.
  137  Such activities include analyzing a business’s mission, vision,
  138  strategies, and goals; critiquing the overall plan; and creating
  139  performance measures.
  140         3. Developing the financial literacy of existing businesses
  141  related to their business cash flow and financial management
  142  plans. Such activities include conducting financial analysis
  143  health checks, assessing cost control management techniques, and
  144  building financial management strategies and solutions.
  145         4. Developing and implementing plans for existing
  146  businesses to access or expand to new or existing markets. Such
  147  activities include conducting market research, researching and
  148  identifying expansion opportunities in international markets,
  149  and identifying opportunities in selling to units of government.
  150         5. Supporting access to capital for business investment and
  151  expansion. Such activities include identifying and assessing
  152  potential debt or equity investors or other financing
  153  opportunities; assisting in the preparation of applications,
  154  projections, or pro forma or other support documentation for
  155  loan, financing, or investment requests; and facilitating
  156  conferences with lenders or investors.
  157         6. Assisting existing businesses to plan for a natural or
  158  man-made disaster, and assisting businesses when such an event
  159  occurs. Such activities include creating business continuity and
  160  disaster plans, preparing disaster and bridge loan applications,
  161  and carrying out other emergency support functions.
  162         (c)A business receiving support services must agree to
  163  participate in assessments of such services. The agreement, at a
  164  minimum, must request the business to report demographic
  165  characteristics, changes in employment and sales, debt and
  166  equity capital attained, and government contracts acquired. The
  167  host institution may require additional reporting requirements
  168  for funding described in subsection (7).
  169         (6)REQUIRED MATCH.—The network must provide a match equal
  170  to the total amount of any direct legislative appropriation
  171  which is received directly by the host institution and is
  172  specifically designated for the network. The match may include
  173  funds from federal or other nonstate funding sources designated
  174  for the network. At least 50 percent of the match must be cash.
  175  The remaining 50 percent may be provided through any allowable
  176  combination of additional cash, in-kind contributions, or
  177  indirect costs.
  181         (a) The statewide director, in coordination with the host
  182  institution, shall establish a pay-per-performance incentive for
  183  regional small business development centers. Such incentive
  184  shall be funded from half of any state appropriation received
  185  directly by the host institution, which appropriation is
  186  specifically designated for the network. These funds shall be
  187  distributed to the regional small business development centers
  188  based upon data collected from the businesses as provided under
  189  paragraph (5)(c). The distribution formula must provide for the
  190  distribution of funds in part on the gross number of jobs
  191  created annually by each center and in part on the number of
  192  jobs created per support service hour. The pay-per-performance
  193  incentive must supplement the operations and support services of
  194  each regional small business development center, and may not
  195  reduce matching funds dedicated to the regional small business
  196  development center.
  197         (b) Half of any state funds received directly by the host
  198  institution which are specifically designated for the network
  199  shall be distributed by the statewide director, in coordination
  200  with the advisory board, for the following purposes:
  201         1. Ensuring that support services are available statewide,
  202  especially in underserved and rural areas of the state, to
  203  assist eligible businesses;
  204         2. Enhancing participation in the network among state
  205  universities and colleges; and
  206         3. Facilitating the adoption of innovative small business
  207  assistance best practices by the regional small business
  208  development centers.
  209         (c) The statewide director, in coordination with the
  210  advisory board, shall develop annual programs to distribute
  211  funds for each of the purposes described in paragraph (b). The
  212  network shall announce the annual amount of available funds for
  213  each program, performance expectations, and other requirements.
  214  For each program, the statewide director shall present
  215  applications and recommendations to the advisory board. The
  216  advisory board shall make the final approval of applications.
  217  Approved applications must be publicly posted. At a minimum,
  218  programs must include:
  219         1. New regional small business development centers; and
  220         2. Awards for the top six regional small business
  221  development centers that adopt best practices, as determined by
  222  the advisory board. Detailed information about best practices
  223  must be made available to regional small business development
  224  centers for voluntary implementation.
  225         (d) A regional small business development center that has
  226  been found by the statewide director to perform poorly, to
  227  engage in improper activity affecting the operation and
  228  integrity of the network, or to fail to follow the rules and
  229  procedures set forth in the laws, regulations, and policies
  230  governing the network, is not eligible for funds under this
  231  subsection.
  232         (e) Funds awarded under this subsection may not reduce
  233  matching funds dedicated to the regional small business
  234  development centers.
  235         (8) REPORTING.—
  236         (a) The statewide director shall quarterly update the Board
  237  of Governors, the department, and the advisory board on the
  238  network’s progress and outcomes, including aggregate information
  239  on businesses assisted by the network.
  240         (b) The statewide director, in coordination with the
  241  advisory board, shall annually report, on June 30, to the
  242  President of the Senate and the Speaker of the House of
  243  Representatives on the network’s progress and outcomes for the
  244  previous fiscal year. The report must include aggregate
  245  information on businesses assisted by the network, network
  246  services and programs, the use of funds specifically dedicated
  247  to the network, and the network’s economic benefit to the state.
  248  The report must contain specific information on performance
  249  based metrics and contain the methodology used to calculate the
  250  network’s economic benefit to the state.
  251         Section 2. This act shall take effect July 1, 2013.