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       Florida Senate - 2010                             CS for SB 1720
       By the Committee on Commerce; and Senator Smith
       577-04350A-10                                         20101720c1
    1                        A bill to be entitled                      
    2         An act relating to the Black Business Investment
    3         Board, Inc.; amending s. 288.707, F.S.; deleting a
    4         description of the board as a public-private entity;
    5         requiring the board to assist the Office of Tourism,
    6         Trade, and Economic Development in creating a long
    7         range strategic policy for the Black Business Loan
    8         Program; revising the entities with whom the board may
    9         create partnerships for the development and expansion
   10         of black business enterprises; revising the membership
   11         of the board of directors; providing for certain
   12         members to be ex officio, nonvoting members; revising
   13         requirements for the selection, removal, and terms of
   14         the chair and vice chair; amending s. 288.709, F.S.;
   15         requiring that upon dissolution of the board, an asset
   16         that was not acquired through the use of state funds
   17         be returned to the donor who provided the asset or the
   18         funding or resources to acquire the asset; amending s.
   19         288.7091, F.S.; requiring the board to aid the
   20         development and expansion of black business
   21         enterprises by leveraging federal, state, local, and
   22         private funds; requiring the board to collaborate with
   23         agencies of the federal, state, and local governments,
   24         private entities, nonprofit organizations, and
   25         national organizations; amending s. 288.7102, F.S.;
   26         revising the dates by which applications for loans
   27         from the Black Business Loan Program must be received
   28         and processed by the Office of Tourism, Trade, and
   29         Economic Development; revising eligibility
   30         requirements for new and existing program recipients;
   31         revising the date by which the Office of Tourism,
   32         Trade, and Economic Development must distribute
   33         appropriations to program recipients; deleting
   34         provisions providing for the board to recommend the
   35         certification of eligible recipients for loans;
   36         revising the percentages of program funds that a
   37         program recipient may use for technical support for
   38         black business enterprises or direct administrative
   39         costs; amending s. 288.71025, F.S.; authorizing the
   40         Office of Tourism, Trade, and Economic Development to
   41         bring a civil action against an entity that unlawfully
   42         holds itself out as a black business investment
   43         corporation; amending s. 288.712, F.S.; deleting a
   44         provision relating to the black contractors bonding
   45         program, which requires the board to provide
   46         assistance to the Office of Supplier Diversity within
   47         the Department of Management Services; amending s.
   48         288.714, F.S.; requiring that recipients of loans from
   49         the Black Business Loan Program provide quarterly
   50         reports to the Office of Tourism, Trade, and Economic
   51         Development; requiring that the Office of Tourism,
   52         Trade, and Economic Development compile a summary of
   53         quarterly reports from loan recipients and provide a
   54         copy of the summary to the board; requiring that the
   55         Office of Tourism, Trade, and Economic Development and
   56         the board provide annual reports to the Governor and
   57         Legislature by a certain date; providing an effective
   58         date.
   60  Be It Enacted by the Legislature of the State of Florida:
   62         Section 1. Subsections (1), (2), (3), and (6) of section
   63  288.707, Florida Statutes, are amended to read:
   64         288.707 Florida Black Business Investment Board, Inc.;
   65  findings; creation; membership; organization; meetings;
   66  disclosure.—
   67         (1) The Legislature finds that the public interest of the
   68  state will be served by the creation of a not-for-profit
   69  corporation, public-private entity the primary mission of which
   70  is shall be to assist in the development and expansion of black
   71  business enterprises by:
   72         (a) Advising the Office of Tourism, Trade, and Economic
   73  Development in its oversight of the Black Business Loan Program
   74  and assisting in the creation of a creating long-range strategic
   75  policy for the program.
   76         (b) Evaluating the unmet need for capital by black business
   77  enterprises in the state.
   78         (c) Creating partnerships between federal, state, and local
   79  governments, and private enterprises, and national organizations
   80  to aid in the development and expansion of black business
   81  enterprises.
   82         (d) Providing a network of information resources for black
   83  business enterprises and providing technical assistance through
   84  this network.
   85         (2)(a) There is created a not-for-profit corporation to be
   86  known as the “Florida Black Business Investment Board, Inc.,”
   87  referred to in ss. 288.707-288.714 as the board, which shall be
   88  registered, incorporated, organized, and operated in compliance
   89  with chapter 617 and which must shall not be a unit or entity of
   90  state government. The Legislature determines, however, that
   91  public policy dictates that the board operate in the most open
   92  and accessible manner consistent with its public purpose.
   93  Therefore, the Legislature specifically declares that the board
   94  and its advisory committees or similar groups created by the
   95  board, including any subsidiaries, are subject to the provisions
   96  of chapter 119, relating to public records, and the provisions
   97  of chapter 286, relating to public meetings and records.
   98         (b) The board shall contract with the Office of Tourism,
   99  Trade, and Economic Development to implement the provisions of
  100  ss. 288.707-288.714.
  101         (3) The board shall be governed by a board of directors
  102  chosen as follows:
  103         (a) Four Five members appointed by the Governor who shall
  104  serve terms of 4 years each, except that in making initial
  105  appointments, the Governor shall appoint three members to serve
  106  for terms of 2 years each and two members to serve for terms of
  107  3 years each.
  108         (b) One member appointed by the President of the Senate who
  109  shall serve a term of 2 years.
  110         (c) One member appointed by the Speaker of the House of
  111  Representatives who shall serve a term of 2 years.
  112         (d) The vice chair of Enterprise Florida, Inc., or his or
  113  her designee, who shall be an ex officio, nonvoting member.
  114         (e) Two at-large members selected by the board of directors
  115  who are nationally known for their achievements in finance,
  116  small business development, or economic development.
  117         (e) The chair of the Florida Development Finance
  118  Corporation created pursuant to s. 288.9604.
  119         (f) Four presidents of participating black business
  120  investment corporations who shall be appointed by the Executive
  121  Director of the Office of Tourism, Trade, and Economic
  122  Development upon the recommendation of the Florida Consortium of
  123  Black Business Investment Corporations, Inc., to serve for terms
  124  of 3 years each. Each shall be eligible for reappointment to one
  125  additional term of 3 years.
  126         (6) The board shall elect a chair and vice chair from among
  127  its members for a term of 2 years. The chair may be removed by a
  128  two-thirds vote of the membership of the board. The Governor
  129  shall appoint the chair, who shall be a member of the board and
  130  shall serve at the pleasure of the Governor. The board shall
  131  annually elect one of its members as vice chair.
  132         Section 2. Subsection (9) of section 288.709, Florida
  133  Statutes, is amended to read:
  134         288.709 Powers of the Florida Black Business Investment
  135  Board, Inc.—The board shall have all the powers granted under
  136  chapter 617 and any powers necessary or convenient to carry out
  137  and effectuate the purposes and provisions of ss. 288.707
  138  288.714, including, but not limited to, the power to:
  139         (9) Provide in its bylaws that, upon the dissolution of the
  140  board, all of its assets acquired through the use of state
  141  funds, after payment of all legal debts and liabilities, revert
  142  to the state. However, an asset that is not acquired through the
  143  use of state funds, or the funding or resources necessary to
  144  acquire the asset, shall be returned to the donor who provided
  145  the asset.
  146         Section 3. Subsections (2) and (6) of section 288.7091,
  147  Florida Statutes, are amended to read:
  148         288.7091 Duties of the Florida Black Business Investment
  149  Board, Inc.—The board shall:
  150         (2) Aid the development and expansion of black business
  151  enterprises by leveraging federal, state, local, and private
  152  funds to be held by the board for use according to the
  153  provisions of ss. 288.707-288.714.
  154         (6) Collaborate with agencies of the federal, state, and
  155  local governments, private entities, nonprofit organizations,
  156  and national organizations the Department of Transportation, the
  157  Department of Management Services, including the Florida
  158  Minority Business Loan Mobilization Program, Workforce Florida,
  159  Inc., and other state agencies and partners, the State
  160  University System, including the Florida Agricultural and
  161  Mechanical University’s Institute of Urban Policy and Commerce,
  162  school boards, and local governments to create a network of
  163  information and to identify available resources to enhance the
  164  development and expansion of black business enterprises.
  165         Section 4. Section 288.7102, Florida Statutes, is amended
  166  to read:
  167         288.7102 Black Business Loan Program.—
  168         (1) The Black Business Loan Program is established in the
  169  Office of Tourism, Trade, and Economic Development. Under the
  170  program, the office shall annually certify eligible recipients
  171  and subsequently disburse funds appropriated by the Legislature,
  172  through such eligible recipients, to black business enterprises
  173  that cannot obtain capital through conventional lending
  174  institutions but that could otherwise compete successfully in
  175  the private sector.
  176         (2) The office shall establish an application and annual
  177  certification process for entities seeking funds to participate
  178  in providing loans, loan guarantees, or investments in black
  179  business enterprises pursuant to the Florida Black Business
  180  Investment Act. The board shall receive the applications and
  181  make recommendations for certification to the office. The office
  182  shall process all applications and recertifications submitted by
  183  June 1 July 1 on or before July 31 September 30.
  184         (3) If the Black Business Loan Program is appropriated any
  185  funding in a fiscal year, the office shall distribute an equal
  186  amount of the appropriation, calculated as the total annual
  187  appropriation divided by the total number of program recipients
  188  certified on or before July 31 September 30 of that fiscal year.
  189         (4) To be eligible to receive funds and provide loans, loan
  190  guarantees, or investments under this section, a recipient must:
  191         (a) Be a corporation registered in the state.
  192         (b) For an existing recipient, annually submit to the
  193  office a financial audit performed by an independent certified
  194  public accountant for the most recently completed fiscal year,
  195  which audit does not reveal any material weaknesses or instances
  196  of material noncompliance.
  197         (c) For a new recipient:
  198         1.(b) Demonstrate that its board of directors includes
  199  citizens of the state experienced in the development of black
  200  business enterprises.
  201         2.(c) Demonstrate that the recipient has a business plan
  202  that allows the recipient to operate in a manner consistent with
  203  ss. 288.707-288.714 and the rules of the office.
  204         3.(d) Demonstrate that the recipient has the technical
  205  skills to analyze and evaluate applications by black business
  206  enterprises for loans, loan guarantees, or investments.
  207         4.(e) Demonstrate that the recipient has established viable
  208  partnerships with public and private funding sources, economic
  209  development agencies, and workforce development and job referral
  210  networks.
  211         5.(f) Demonstrate that the recipient can provide a private
  212  match equal to 20 percent of the amount of funds provided by the
  213  office.
  214         (d)(g)For an existing or new recipient, agree to maintain
  215  the recipient’s books and records relating to funds received by
  216  the office according to generally accepted accounting principles
  217  and in accordance with the requirements of s. 215.97(7) and to
  218  make those books and records available to the office for
  219  inspection upon reasonable notice.
  220         (5) The board shall annually recommend to the office
  221  certification of Each eligible recipient, who must meet the
  222  provisions of ss. 288.707-288.714, the terms of the contract
  223  between the recipient and the office, and any other applicable
  224  state or federal laws. An entity may not receive funds under ss.
  225  288.707-288.714 unless the entity meets annual certification
  226  requirements.
  227         (6) Upon approval by the office and before prior to release
  228  of the funds as provided in this section, the office shall issue
  229  a letter certifying the applicant as qualified for an award. The
  230  office and the applicant shall enter into an agreement that sets
  231  forth the conditions for award of the funds. The agreement must
  232  include the total amount of funds awarded; the performance
  233  conditions that must be met once the funding has been awarded,
  234  including, but not limited to, compliance with all of the
  235  requirements of this section for eligible recipients of funds
  236  under this section; and sanctions for failure to meet
  237  performance conditions, including any provisions to recover
  238  awards.
  239         (7)(a) The office, in consultation with the board, shall
  240  adopt rules pursuant to ss. 120.536(1) and 120.54 to implement
  241  this section.
  242         (b) The board shall adopt policies and procedures necessary
  243  to implement this section.
  244         (8) A black business investment corporation certified by
  245  the office as an eligible recipient under this section is
  246  authorized to use funds appropriated for the Black Business Loan
  247  Program in any of the following forms:
  248         (a) Purchases of stock, preferred or common, voting or
  249  nonvoting; however, no more than 40 percent of the funds may be
  250  used for direct investments in black business enterprises;
  251         (b) Loans or loan guarantees, with or without recourse, in
  252  either a subordinated or priority position; or
  253         (c) Technical support to black business enterprises, not to
  254  exceed 9 7 percent of the funds received, and direct
  255  administrative costs, not to exceed 12 10 percent of the funds
  256  received.
  257         (9) It is the intent of the Legislature that if any one
  258  type of investment mechanism authorized in subsection (8) is
  259  held to be invalid, all other valid mechanisms remain available.
  260         (10) All loans, loan guarantees, and investments, and any
  261  income related thereto, shall be used to carry out the public
  262  purpose of ss. 288.707-288.714, which is to develop black
  263  business enterprises. This subsection does not preclude a
  264  reasonable profit for the participating black business
  265  investment corporation or for return of equity developed to the
  266  state and participating financial institutions upon any
  267  distribution of the assets or excess income of the investment
  268  corporation.
  269         Section 5. Section 288.71025, Florida Statutes, is amended
  270  to read:
  271         288.71025 Prohibited acts; penalties.—
  272         (1) It is unlawful for any person to hold itself out as a
  273  black business investment corporation without being certified by
  274  the board as eligible to participate in the Florida Black
  275  Business Loan Program.
  276         (2) In addition to any other penalties or remedies provided
  277  under law, the office board may bring a civil action in any
  278  court of competent jurisdiction against any person for a knowing
  279  or willful violation of this section. Upon an adverse
  280  adjudication, the court may impose a civil penalty of up to $500
  281  and payment of court costs and reasonable attorney’s fees
  282  incurred by the plaintiff.
  283         Section 6. Subsection (5) of section 288.712, Florida
  284  Statutes, is amended to read:
  285         288.712 Guarantor funds.—
  286         (5) The board shall do all of the following to implement
  287  the black contractors bonding program:
  288         (a) Conduct outreach, marketing, and recruitment of black
  289  contractors.
  290         (b) Provide assistance to the Office of Supplier Diversity
  291  within the Department of Management Services, as needed, to
  292  certify new black business enterprises and to train appropriate
  293  department staff.
  294         (b)(c) Provide business development services to black
  295  business enterprises in the developmental and transitional
  296  stages of the program, including financing and bonding
  297  assistance and management and technical assistance.
  298         (c)(d) Develop a mentor program to bring businesses into a
  299  working relationship with black contractors in a way that
  300  commercially benefits both entities and serves the purpose of
  301  the program.
  302         (e) No later than December 31, 2007, prepare and submit to
  303  the Governor a detailed report outlining and evaluating the
  304  progress made in implementing the black contractors bonding
  305  program.
  306         (d)(f) Establish a process by which black contractors may
  307  apply for contract assistance, financial and bonding assistance,
  308  management and technical assistance, and mentoring
  309  opportunities.
  310         Section 7. Section 288.714, Florida Statutes, is amended to
  311  read:
  312         288.714 Quarterly and annual reports.—
  313         (1) Each recipient of state funds under s. 288.7102 shall
  314  provide to the office board a quarterly report within 15 days
  315  after the end of each calendar quarter that includes a detailed
  316  summary of the recipient’s performance of the duties imposed by
  317  s. 288.7102, including, but not limited to:
  318         (a) The dollar amount of all loans or loan guarantees made
  319  to black business enterprises, the percentages of the loans
  320  guaranteed, and the names and identification of the types of
  321  businesses served.
  322         (b) Loan performance information.
  323         (c) The amount and nature of all other financial assistance
  324  provided to black business enterprises.
  325         (d) The amount and nature of technical assistance provided
  326  to black business enterprises, including technical assistance
  327  services provided in areas in which such services are otherwise
  328  unavailable.
  329         (e) A balance sheet for the recipient, including an
  330  explanation of all investments and administrative and
  331  operational expenses.
  332         (f) A summary of all services provided to nonblack business
  333  enterprises, including the dollar value and nature of such
  334  services and the names and identification of the types of
  335  businesses served.
  336         (g) Any other information as required by policies adopted
  337  by the office board.
  338         (2) The office board must compile and provide to the office
  339  a summary of all quarterly reports and provide a copy of the
  340  summary to the board within 30 days after the end of each
  341  calendar quarter that includes a detailed summary of the
  342  recipient’s performance of the duties imposed by s. 288.7102.
  343         (3) By August 31 May 1 of each year, the office board shall
  344  provide to the Governor, the President of the Senate, and the
  345  Speaker of the House of Representatives a detailed report of the
  346  performance of the Black Business Loan Program. The report must
  347  include, including:
  348         (a) a cumulative summary of quarterly report data required
  349  by subsection (1).
  350         (4) By August 31 of each year, the board shall provide to
  351  the Governor, the President of the Senate, and the Speaker of
  352  the House of Representatives a detailed report of the board’s
  353  performance, including:
  354         (a)(b) A description of the strategies implemented by the
  355  board to increase private investment in black business
  356  enterprises.
  357         (b)(c) A summary of the board’s performance of its duties
  358  under ss. 288.707-288.712.
  359         (c)(d) The most recent 5-year projection of the need for
  360  capital by black business enterprises.
  361         (d)(e) Recommendations for legislative or other changes to
  362  enhance the development and expansion of black business
  363  enterprises in the state.
  364         (e)(f) A projection of the program’s activities during the
  365  next 12 months.
  366         Section 8. This act shall take effect upon becoming a law.

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