Bill Text: FL H0317 | 2011 | Regular Session | Introduced


Bill Title: Black Business Loan Program

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-01-25 - Withdrawn prior to introduction -HJ 32 [H0317 Detail]

Download: Florida-2011-H0317-Introduced.html
HB 317

1
A bill to be entitled
2An act relating to the Black Business Loan Program;
3amending s. 288.7102, F.S.; revising the recertification
4and audit periods for eligible recipients of the Black
5Business Loan Program; authorizing recipients to redress
6audit findings within a specified period; providing term
7of funding agreements between recipients and the Office of
8Tourism, Trade, and Economic Development; revising limits
9on the use of funds for technical support to black
10business enterprises and direct administrative costs;
11providing an effective date.
12
13Be It Enacted by the Legislature of the State of Florida:
14
15     Section 1.  Section 288.7102, Florida Statutes, is amended
16to read:
17     288.7102  Black Business Loan Program.-
18     (1)  The Black Business Loan Program is established in the
19Office of Tourism, Trade, and Economic Development. Under the
20program, the office shall annually certify eligible recipients,
21recertify eligible recipients once every 5 years, and
22subsequently disburse funds appropriated by the Legislature,
23through such eligible recipients, to black business enterprises
24that cannot obtain capital through conventional lending
25institutions but that could otherwise compete successfully in
26the private sector.
27     (2)  The office shall establish an application and annual
28certification process for entities seeking funds to participate
29in providing loans, loan guarantees, or investments in black
30business enterprises pursuant to the Florida Black Business
31Investment Act. The office shall process all applications and
32recertifications submitted by June 1 on or before July 31.
33     (3)  If the Black Business Loan Program is appropriated any
34funding in a fiscal year, the office shall distribute an equal
35amount of the appropriation, calculated as the total annual
36appropriation divided by the total number of program recipients
37certified on or before July 31 of that fiscal year.
38     (4)  To be eligible to receive funds and provide loans,
39loan guarantees, or investments under this section, a recipient
40must:
41     (a)  Be a corporation registered in the state.
42     (b)  For an existing recipient, annually submit to the
43office, together with the recipient's recertification
44application, a financial audit performed by an independent
45certified public account for the recipient's quinquennial
46recertification period most recently completed fiscal year,
47which audit does not reveal any material weaknesses or instances
48of material noncompliance that the recipient does not
49substantially redress within 60 days after receipt of the audit
50report.
51     (c)  For a new recipient:
52     1.  Demonstrate that its board of directors includes
53citizens of the state experienced in the development of black
54business enterprises.
55     2.  Demonstrate that the recipient has a business plan that
56allows the recipient to operate in a manner consistent with ss.
57288.707-288.714 and the rules of the office.
58     3.  Demonstrate that the recipient has the technical skills
59to analyze and evaluate applications by black business
60enterprises for loans, loan guarantees, or investments.
61     4.  Demonstrate that the recipient has established viable
62partnerships with public and private funding sources, economic
63development agencies, and workforce development and job referral
64networks.
65     5.  Demonstrate that the recipient can provide a private
66match equal to 20 percent of the amount of funds provided by the
67office.
68     (d)  For an existing or new recipient, agree to maintain
69the recipient's books and records relating to funds received by
70the office according to generally accepted accounting principles
71and in accordance with the requirements of s. 215.97(7) and to
72make those books and records available to the office for
73inspection upon reasonable notice.
74     (5)  Each eligible recipient must meet the provisions of
75ss. 288.707-288.714, the terms of the agreement contract between
76the recipient and the office, and any other applicable state or
77federal laws. An entity may not receive funds under ss. 288.707-
78288.714 unless the entity meets annual certification
79requirements.
80     (6)  Upon approval by the office and before release of the
81funds as provided in this section, the office shall issue a
82letter certifying the applicant as qualified for an award. The
83office and the applicant shall enter into an agreement that sets
84forth the conditions for award of the funds. The agreement must
85include the total amount of funds awarded; the performance
86conditions that must be met once the funding is has been
87awarded, including, but not limited to, compliance with all of
88the requirements of this section for eligible recipients of
89funds under this section; and sanctions for failure to meet
90performance conditions, including any provisions to recover
91awards. The term of the agreement may not exceed 1 year.
92     (7)  The office, in consultation with the board, shall
93adopt rules pursuant to ss. 120.536(1) and 120.54 to implement
94this section.
95     (8)  A black business investment corporation certified by
96the office as an eligible recipient under this section is
97authorized to use funds appropriated for the Black Business Loan
98Program in any of the following forms:
99     (a)  Purchases of stock, preferred or common, voting or
100nonvoting; however, no more than 40 percent of the funds may be
101used for direct investments in black business enterprises;
102     (b)  Loans or loan guarantees, with or without recourse, in
103either a subordinated or priority position; or
104     (c)  Technical support to black business enterprises, not
105to exceed 9 percent of the funds received, and direct
106administrative costs, not to exceed 27 12 percent of the funds
107received.
108     (9)  It is the intent of the Legislature that if any one
109type of investment mechanism authorized in subsection (8) is
110held to be invalid, all other valid mechanisms remain available.
111     (10)  All loans, loan guarantees, and investments, and any
112income related thereto, shall be used to carry out the public
113purpose of ss. 288.707-288.714, which is to develop black
114business enterprises. This subsection does not preclude a
115reasonable profit for the participating black business
116investment corporation or for return of equity developed to the
117state and participating financial institutions upon any
118distribution of the assets or excess income of the investment
119corporation.
120     Section 2.  This act shall take effect July 1, 2011.


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