Bill Text: FL H1551 | 2010 | Regular Session | Comm Sub

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Bill Title: Black Business Investment Board, Inc. [CPSC]

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2010-05-07 - Approved by Governor; Chapter No. 2010-39 [H1551 Detail]

Download: Florida-2010-H1551-Comm_Sub.html

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CS/HB 1551

1	A bill to be entitled
2	An act relating to the Black Business Investment Board,
3	Inc.; amending s. 288.707, F.S.; deleting a description of
4	the board as a public-private entity; requiring the board
5	to assist the Office of Tourism, Trade, and Economic
6	Development in creating a long-range strategic policy for
7	the Black Business Loan Program; revising the entities
8	with whom the board may create partnerships for the
9	development and expansion of black business enterprises;
10	revising the membership of the board of directors;
11	providing for certain members to be ex officio, nonvoting
12	members; revising requirements for the selection, removal,
13	and terms of the chair and vice chair; amending s.
14	288.709, F.S.; requiring that upon dissolution of the
15	board, an asset that was not acquired through the use of
16	state funds be returned to the donor who provided the
17	asset or the funding or resources to acquire the asset;
18	amending s. 288.7091, F.S.; requiring the board to aid the
19	development and expansion of black business enterprises by
20	leveraging federal, state, local, and private funds;
21	requiring the board to collaborate with agencies of the
22	federal, state, and local governments, private entities,
23	nonprofit organizations, and national organizations;
24	amending s. 288.7102, F.S.; revising the dates by which
25	applications for loans from the Black Business Loan
26	Program must be received and processed by the Office of
27	Tourism, Trade, and Economic Development; revising
28	eligibility requirements for new and existing program
29	recipients; revising the date by which the Office of
30	Tourism, Trade, and Economic Development must distribute
31	appropriations to program recipients; deleting provisions
32	providing for the board to recommend the certification of
33	eligible recipients for loans; revising the percentages of
34	program funds that a program recipient may use for
35	technical support for black business enterprises or direct
36	administrative costs; amending s. 288.71025, F.S.;
37	authorizing the Office of Tourism, Trade, and Economic
38	Development to bring a civil action against an entity that
39	unlawfully holds itself out as a black business investment
40	corporation; amending s. 288.712, F.S.; deleting a
41	provision relating to the black contractors bonding
42	program, which requires the board to provide assistance to
43	the Office of Supplier Diversity within the Department of
44	Management Services; amending s. 288.714, F.S.; requiring
45	that recipients of loans from the Black Business Loan
46	Program provide quarterly reports to the Office of
47	Tourism, Trade, and Economic Development; requiring that
48	the Office of Tourism, Trade, and Economic Development
49	compile a summary of quarterly reports from loan
50	recipients and provide a copy of the summary to the board;
51	requiring that the Office of Tourism, Trade, and Economic
52	Development and the board provide annual reports to the
53	Governor and Legislature by a certain date; providing an
54	effective date.
55
56	Be It Enacted by the Legislature of the State of Florida:
57
58	Section 1. Subsections (1), (2), (3), and (6) of section
59	288.707, Florida Statutes, are amended to read:
60	288.707 Florida Black Business Investment Board, Inc.;
61	findings; creation; membership; organization; meetings;
62	disclosure.-
63	(1) The Legislature finds that the public interest of the
64	state will be served by the creation of a not-for-profit
65	corporation, public-private entity the primary mission of which
66	is shall be to assist in the development and expansion of black
67	business enterprises by:
68	(a) Advising the Office of Tourism, Trade, and Economic
69	Development in its oversight of the Black Business Loan Program
70	and assisting in the creation of a creating long-range strategic
71	policy for the program.
72	(b) Evaluating the unmet need for capital by black
73	business enterprises in the state.
74	(c) Creating partnerships between federal, state, and
75	local governments, and private enterprises, and national
76	organizations to aid in the development and expansion of black
77	business enterprises.
78	(d) Providing a network of information resources for black
79	business enterprises and providing technical assistance through
80	this network.
81	(2)(a) There is created a not-for-profit corporation to be
82	known as the "Florida Black Business Investment Board, Inc.,"
83	referred to in ss. 288.707-288.714 as the board, which shall be
84	registered, incorporated, organized, and operated in compliance
85	with chapter 617 and which must shall not be a unit or entity of
86	state government. The Legislature determines, however, that
87	public policy dictates that the board operate in the most open
88	and accessible manner consistent with its public purpose.
89	Therefore, the Legislature specifically declares that the board
90	and its advisory committees or similar groups created by the
91	board, including any subsidiaries, are subject to the provisions
92	of chapter 119, relating to public records, and the provisions
93	of chapter 286, relating to public meetings and records.
94	(b) The board shall contract with the Office of Tourism,
95	Trade, and Economic Development to implement the provisions of
96	ss. 288.707-288.714.
97	(3) The board shall be governed by a board of directors
98	chosen as follows:
99	(a) Four Five members appointed by the Governor who shall
100	serve terms of 4 years each, except that in making initial
101	appointments, the Governor shall appoint three members to serve
102	for terms of 2 years each and two members to serve for terms of
103	3 years each.
104	(b) One member appointed by the President of the Senate
105	who shall serve a term of 2 years.
106	(c) One member appointed by the Speaker of the House of
107	Representatives who shall serve a term of 2 years.
108	(d) The vice chair of Enterprise Florida, Inc., or his or
109	her designee, who shall be an ex officio, nonvoting member.
110	(e) Two at-large members selected by the board of
111	directors who are nationally known for their achievements in
112	finance, small business development, or economic development.
113	(e) The chair of the Florida Development Finance
114	Corporation created pursuant to s. 288.9604.
115	(f) Four presidents of participating black business
116	investment corporations who shall be appointed by the Executive
117	Director of the Office of Tourism, Trade, and Economic
118	Development upon the recommendation of the Florida Consortium of
119	Black Business Investment Corporations, Inc., to serve for terms
120	of 3 years each. Each shall be eligible for reappointment to one
121	additional term of 3 years.
122	(6) The board shall elect a chair and vice chair from
123	among its members for a term of 2 years. The chair may be
124	removed by a two-thirds vote of the membership of the board. The
125	Governor shall appoint the chair, who shall be a member of the
126	board and shall serve at the pleasure of the Governor. The board
127	shall annually elect one of its members as vice chair.
128	Section 2. Subsection (9) of section 288.709, Florida
129	Statutes, is amended to read:
130	288.709 Powers of the Florida Black Business Investment
131	Board, Inc.-The board shall have all the powers granted under
132	chapter 617 and any powers necessary or convenient to carry out
133	and effectuate the purposes and provisions of ss. 288.707-
134	288.714, including, but not limited to, the power to:
135	(9) Provide in its bylaws that, upon the dissolution of
136	the board, all of its assets acquired through the use of state
137	funds, after payment of all legal debts and liabilities, revert
138	to the state. However, an asset that is not acquired through the
139	use of state funds, or the funding or resources necessary to
140	acquire the asset, shall be returned to the donor who provided
141	the asset.
142	Section 3. Subsections (2) and (6) of section 288.7091,
143	Florida Statutes, are amended to read:
144	288.7091 Duties of the Florida Black Business Investment
145	Board, Inc.-The board shall:
146	(2) Aid the development and expansion of black business
147	enterprises by leveraging federal, state, local, and private
148	funds to be held by the board for use according to the
149	provisions of ss. 288.707-288.714.
150	(6) Collaborate with agencies of the federal, state, and
151	local governments, private entities, nonprofit organizations,
152	and national organizations the Department of Transportation, the
153	Department of Management Services, including the Florida
154	Minority Business Loan Mobilization Program, Workforce Florida,
155	Inc., and other state agencies and partners, the State
156	University System, including the Florida Agricultural and
157	Mechanical University's Institute of Urban Policy and Commerce,
158	school boards, and local governments to create a network of
159	information and to identify available resources to enhance the
160	development and expansion of black business enterprises.
161	Section 4. Section 288.7102, Florida Statutes, is amended
162	to read:
163	288.7102 Black Business Loan Program.-
164	(1) The Black Business Loan Program is established in the
165	Office of Tourism, Trade, and Economic Development. Under the
166	program, the office shall annually certify eligible recipients
167	and subsequently disburse funds appropriated by the Legislature,
168	through such eligible recipients, to black business enterprises
169	that cannot obtain capital through conventional lending
170	institutions but that could otherwise compete successfully in
171	the private sector.
172	(2) The office shall establish an application and annual
173	certification process for entities seeking funds to participate
174	in providing loans, loan guarantees, or investments in black
175	business enterprises pursuant to the Florida Black Business
176	Investment Act. The board shall receive the applications and
177	make recommendations for certification to the office. The office
178	shall process all applications and recertifications submitted by
179	June 1 July 1 on or before July 31 September 30.
180	(3) If the Black Business Loan Program is appropriated any
181	funding in a fiscal year, the office shall distribute an equal
182	amount of the appropriation, calculated as the total annual
183	appropriation divided by the total number of program recipients
184	certified on or before July 31 September 30 of that fiscal year.
185	(4) To be eligible to receive funds and provide loans,
186	loan guarantees, or investments under this section, a recipient
187	must:
188	(a) Be a corporation registered in the state.
189	(b) For an existing recipient, annually submit to the
190	office a financial audit performed by an independent certified
191	public account for the most recently completed fiscal year,
192	which audit does not reveal any material weaknesses or instances
193	of material noncompliance.
194	(c) For a new recipient:
195	1.(b) Demonstrate that its board of directors includes
196	citizens of the state experienced in the development of black
197	business enterprises.
198	2.(c) Demonstrate that the recipient has a business plan
199	that allows the recipient to operate in a manner consistent with
200	ss. 288.707-288.714 and the rules of the office.
201	3.(d) Demonstrate that the recipient has the technical
202	skills to analyze and evaluate applications by black business
203	enterprises for loans, loan guarantees, or investments.
204	4.(e) Demonstrate that the recipient has established
205	viable partnerships with public and private funding sources,
206	economic development agencies, and workforce development and job
207	referral networks.
208	5.(f) Demonstrate that the recipient can provide a private
209	match equal to 20 percent of the amount of funds provided by the
210	office.
211	(d)(g) For an existing or new recipient, agree to maintain
212	the recipient's books and records relating to funds received by
213	the office according to generally accepted accounting principles
214	and in accordance with the requirements of s. 215.97(7) and to
215	make those books and records available to the office for
216	inspection upon reasonable notice.
217	(5) The board shall annually recommend to the office
218	certification of Each eligible recipient, who must meet the
219	provisions of ss. 288.707-288.714, the terms of the contract
220	between the recipient and the office, and any other applicable
221	state or federal laws. An entity may not receive funds under ss.
222	288.707-288.714 unless the entity meets annual certification
223	requirements.
224	(6) Upon approval by the office and before prior to
225	release of the funds as provided in this section, the
226	shall issue a letter certifying the applicant as
227	an award. The office and the applicant shall enter
228	agreement that sets forth the conditions for award of the funds.
229	The agreement must include the total amount of funds awarded;
230	the performance conditions that must be met once the funding has
231	been awarded, including, but not limited to, compliance with all
232	of the requirements of this section for eligible recipients of
233	funds under this section; and sanctions for failure to meet
234	performance conditions, including any provisions to recover
235	awards.
236	(7)(a) The office, in consultation with the board, shall
237	adopt rules pursuant to ss. 120.536(1) and 120.54 to implement
238	this section.
239	(b) The board shall adopt policies and procedures
240	necessary to implement this section.
241	(8) A black business investment corporation certified by
242	the office as an eligible recipient under this section is
243	authorized to use funds appropriated for the Black Business Loan
244	Program in any of the following forms:
245	(a) Purchases of stock, preferred or common, voting or
246	nonvoting; however, no more than 40 percent of the funds may be
247	used for direct investments in black business enterprises;
248	(b) Loans or loan guarantees, with or without recourse, in
249	either a subordinated or priority position; or
250	(c) Technical support to black business enterprises, not
251	to exceed 9 7 percent of the funds received, and direct
252	administrative costs, not to exceed 12 10 percent of the funds
253	received.
254	(9) It is the intent of the Legislature that if any one
255	type of investment mechanism authorized in subsection (8) is
256	held to be invalid, all other valid mechanisms remain available.
257	(10) All loans, loan guarantees, and investments, and any
258	income related thereto, shall be used to carry out the public
259	purpose of ss. 288.707-288.714, which is to develop black
260	business enterprises. This subsection does not preclude a
261	reasonable profit for the participating black business
262	investment corporation or for return of equity developed to the
263	state and participating financial institutions upon any
264	distribution of the assets or excess income of the investment
265	corporation.
266	Section 5. Section 288.71025, Florida Statutes, is amended
267	to read:
268	288.71025 Prohibited acts; penalties.-
269	(1) It is unlawful for any person to hold itself out as a
270	black business investment corporation without being certified by
271	the board as eligible to participate in the Florida Black
272	Business Loan Program.
273	(2) In addition to any other penalties or remedies
274	provided under law, the office board may bring a civil action in
275	any court of competent jurisdiction against any person for a
276	knowing or willful violation of this section. Upon an adverse
277	adjudication, the court may impose a civil penalty of up to $500
278	and payment of court costs and reasonable attorney's fees
279	incurred by the plaintiff.
280	Section 6. Subsection (5) of section 288.712, Florida
281	Statutes, is amended to read:
282	288.712 Guarantor funds.-
283	(5) The board shall do all of the following to implement
284	the black contractors bonding program:
285	(a) Conduct outreach, marketing, and recruitment of black
286	contractors.
287	(b) Provide assistance to the Office of Supplier Diversity
288	within the Department of Management Services, as needed, to
289	certify new black business enterprises and to train appropriate
290	department staff.
291	(b)(c) Provide business development services to black
292	business enterprises in the developmental and transitional
293	stages of the program, including financing and bonding
294	assistance and management and technical assistance.
295	(c)(d) Develop a mentor program to bring businesses into a
296	working relationship with black contractors in a way that
297	commercially benefits both entities and serves the purpose of
298	the program.
299	(e) No later than December 31, 2007, prepare and submit to
300	the Governor a detailed report outlining and evaluating the
301	progress made in implementing the black contractors bonding
302	program.
303	(d)(f) Establish a process by which black contractors may
304	apply for contract assistance, financial and bonding assistance,
305	management and technical assistance, and mentoring
306	opportunities.
307	Section 7. Section 288.714, Florida Statutes, is amended
308	to read:
309	288.714 Quarterly and annual reports.-
310	(1) Each recipient of state funds under s. 288.7102 shall
311	provide to the office board a quarterly report within 15 days
312	after the end of each calendar quarter that includes a detailed
313	summary of the recipient's performance of the duties imposed by
314	s. 288.7102, including, but not limited to:
315	(a) The dollar amount of all loans or loan guarantees made
316	to black business enterprises, the percentages of the loans
317	guaranteed, and the names and identification of the types of
318	businesses served.
319	(b) Loan performance information.
320	(c) The amount and nature of all other financial
321	assistance provided to black business enterprises.
322	(d) The amount and nature of technical assistance provided
323	to black business enterprises, including technical assistance
324	services provided in areas in which such services are otherwise
325	unavailable.
326	(e) A balance sheet for the recipient, including an
327	explanation of all investments and administrative and
328	operational expenses.
329	(f) A summary of all services provided to nonblack
330	business enterprises, including the dollar value and nature of
331	such services and the names and identification of the types of
332	businesses served.
333	(g) Any other information as required by policies adopted
334	by the office board.
335	(2) The office board must compile and provide to the
336	office a summary of all quarterly reports and provide a copy of
337	the summary to the board within 30 days after the end of each
338	calendar quarter that includes a detailed summary of the
339	recipient's performance of the duties imposed by s. 288.7102.
340	(3) By August 31 May 1 of each year, the office board
341	shall provide to the Governor, the President of the Senate, and
342	the Speaker of the House of Representatives a detailed report of
343	the performance of the Black Business Loan Program. The report
344	must include, including:
345	(a) a cumulative summary of quarterly report data required
346	by subsection (1).
347	(4) By August 31 of each year, the board shall provide to
348	the Governor, the President of the Senate, and the Speaker of
349	the House of Representatives a detailed report of the board's
350	performance, including:
351	(a)(b) A description of the strategies implemented by the
352	board to increase private investment in black business
353	enterprises.
354	(b)(c) A summary of the board's performance of its duties
355	under ss. 288.707-288.712.
356	(c)(d) The most recent 5-year projection of the need for
357	capital by black business enterprises.
358	(d)(e) Recommendations for legislative or other changes to
359	enhance the development and expansion of black business
360	enterprises in the state.
361	(e)(f) A projection of the program's activities during the
362	next 12 months.
363	Section 8. This act shall take effect upon becoming a law.

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