Bill Text: FL H0925 | 2011 | Regular Session | Introduced

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Bill Title: Black Business Loan Program

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H0925 Detail]

Download: Florida-2011-H0925-Introduced.html

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HB 925

1	A bill to be entitled
2	An act relating to the Black Business Loan Program;
3	amending s. 288.7102, F.S.; revising the recertification
4	and audit periods for eligible recipients of the Black
5	Business Loan Program; authorizing existing recipients to
6	submit certain information to the Office of Tourism,
7	Trade, and Economic Development instead of financial
8	audits under certain circumstances; authorizing recipients
9	to redress audit findings within a specified period;
10	providing term of and revising requirements for funding
11	agreements between recipients and the office; revising the
12	entities with whom the office must consult before adopting
13	rules; revising limits on the use of funds for technical
14	support to black business enterprises and direct
15	administrative costs; conforming provisions; reenacting s.
16	288.7094(2), F.S., relating to black business investment
17	corporations, to incorporate changes made by the act in a
18	reference thereto; providing an effective date.
19
20	Be It Enacted by the Legislature of the State of Florida:
21
22	Section 1.  Section 288.7102, Florida Statutes, is amended
23	to read:
24	288.7102  Black Business Loan Program.-
25	(1)  The Black Business Loan Program is established in the
26	Office of Tourism, Trade, and Economic Development. Under the
27	program, the office shall annually certify eligible recipients
28	for a period of 5 years, recertify existing eligible recipients
29	once every 5 years, and subsequently disburse funds annually or
30	as appropriated by the Legislature, through such eligible
31	recipients, to black business enterprises that cannot obtain
32	capital through conventional lending institutions but that could
33	otherwise compete successfully in the private sector.
34	(2)  The office shall establish an application and annual
35	certification process for entities seeking funds to participate
36	in providing loans, loan guarantees, or investments in black
37	business enterprises pursuant to the Florida Black Business
38	Investment Act. The office shall process all applications and
39	recertifications submitted by June 1 on or before July 31 of the
40	same calendar year.
41	(3)  If the Black Business Loan Program is appropriated any
42	funding in a fiscal year, the office shall distribute an equal
43	amount of the appropriation, calculated as the total annual
44	appropriation divided by the total number of program recipients
45	certified on or before July 31 of that fiscal year.
46	(4)  To be eligible to receive funds and provide loans,
47	loan guarantees, or investments under this section, a recipient
48	must:
49	(a)  Be a corporation registered in the state.
50	(b)  For an existing recipient during the 1st through 4th
51	years of the recipient's recertification period, annually submit
52	to the office a financial audit or compilation of the
53	recipient's financial statement information for the most
54	recently completed fiscal year and a copy of the office's most
55	recent letter certifying the recipient as qualified for the
56	award of funds.
57	(c)  For an existing recipient during the 5th year of the
58	recipient's recertification period, submit to the office a
59	recertification application and a financial audit performed by
60	an independent certified public account for the most recently
61	completed fiscal year, which audit does not reveal any material
62	weaknesses or instances of material noncompliance that the
63	recipient does not substantially redress within 60 days after
64	receipt of the audit report.
65	(d)(c)  For a new recipient:
66	1.  Demonstrate that its board of directors includes
67	citizens of the state experienced in the development of black
68	business enterprises.
69	2.  Demonstrate that the recipient has a business plan that
70	allows the recipient to operate in a manner consistent with ss.
71	288.707-288.714 and the rules of the office.
72	3.  Demonstrate that the recipient has the technical skills
73	to analyze and evaluate applications by black business
74	enterprises for loans, loan guarantees, or investments.
75	4.  Demonstrate that the recipient has established viable
76	partnerships with public and private funding sources, economic
77	development agencies, and workforce development and job referral
78	networks.
79	5.  Demonstrate that the recipient can provide a private
80	match equal to 20 percent of the amount of funds provided by the
81	office.
82	(e)(d)  For an existing or new recipient, agree to maintain
83	the recipient's books and records relating to funds received by
84	the office according to generally accepted accounting principles
85	and in accordance with the requirements of s. 215.97(7) and to
86	make those books and records available to the office for
87	inspection upon reasonable notice.
88	(5)  Each eligible recipient must meet the provisions of
89	ss. 288.707-288.714, the terms of the agreement contract between
90	the recipient and the office, and any other applicable state or
91	federal laws. An entity may not receive funds under ss. 288.707-
92	288.714 unless the entity meets annual certification
93	requirements.
94	(6)  Upon approval by the office and Before release of the
95	funds as provided in this section, the office shall issue a
96	letter certifying the eligible recipient applicant as qualified
97	for an award. The office and the eligible recipient applicant
98	shall enter into an annual agreement that sets forth the
99	conditions for award of the funds. The term of any agreement
100	between the office and an eligible recipient may not exceed 1
101	year. The agreement must include the total amount of funds
102	awarded; the performance conditions that must be met once the
103	funding is has been awarded, including, but not limited to,
104	compliance with all of the requirements of this section for
105	eligible recipients of funds under this section; and sanctions
106	for failure to meet performance conditions, including any
107	provisions to recover awards. The agreement may not require any
108	reporting of or obligation for appropriated funds beyond the 1-
109	year term of the agreement, except that appropriated funds
110	remaining unexpended at the end of the 1-year agreement must be
111	reported until the funds are expended.
112	(7)  The office, in consultation with the presidents of the
113	black business investment corporations board, shall adopt rules
114	pursuant to ss. 120.536(1) and 120.54 to implement this section.
115	(8)  A black business investment corporation certified by
116	the office as an eligible recipient under this section is
117	authorized to use funds appropriated for the Black Business Loan
118	Program in any of the following forms:
119	(a)  Purchases of stock, preferred or common, voting or
120	nonvoting; however, no more than 40 percent of the funds may be
121	used for direct investments in black business enterprises;
122	(b)  Loans or loan guarantees, with or without recourse, in
123	either a subordinated or priority position; or
124	(c)  Technical support to black business enterprises, not
125	to exceed 9 percent of the funds received, and direct
126	administrative costs, not to exceed 27 12 percent of the funds
127	received.
128	(9)  It is the intent of the Legislature that if any one
129	type of investment mechanism authorized in subsection (8) is
130	held to be invalid, all other valid mechanisms remain available.
131	(10)  All loans, loan guarantees, and investments, and any
132	income related thereto, shall be used to carry out the public
133	purpose of ss. 288.707-288.714, which is to develop black
134	business enterprises. This subsection does not preclude a
135	reasonable profit for the participating black business
136	investment corporation or for return of equity developed to the
137	state and participating financial institutions upon any
138	distribution of the assets or excess income of the investment
139	corporation.
140	Section 2.  For the purpose of incorporating the amendment
141	made by this act to section 288.7102, Florida Statutes, in a
142	reference thereto, subsection (2) of section 288.7094, Florida
143	Statutes, is reenacted to read:
144	288.7094  Black business investment corporations.-
145	(2)  A black business investment corporation that meets the
146	requirements of s. 288.7102(4) is eligible to participate in the
147	Black Business Loan Program and shall receive priority
148	consideration by the Office of Tourism, Trade, and Economic
149	Development for participation in the program.
150	Section 3.  This act shall take effect July 1, 2011.

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