Florida Senate - 2013                        COMMITTEE AMENDMENT
       Bill No. SB 224
                                Barcode 805588                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/14/2013           .                                

       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
    6  read:
    7         288.001 The Florida Small Business Development Center
    8  Network; purpose.—
    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.
   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
   26  10.015.
   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
   51  Governor.
   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
   56  designee.
   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.
   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.
  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
  186  subsection.
  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.