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