Senate Bill sb2860c2

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    Florida Senate - 2007                    CS for CS for SB 2860

    By the Committees on Governmental Operations; Commerce; and
    Senators Joyner and Wilson




    585-2537-07

  1                      A bill to be entitled

  2         An act relating to black business investment;

  3         amending s. 14.2015, F.S.; requiring the Office

  4         of Tourism, Trade, and Economic Development to

  5         administer the Black Business Loan Program;

  6         providing purposes; amending s. 288.702, F.S.;

  7         revising a short title; amending s. 288.703,

  8         F.S.; revising the definition of "minority

  9         person"; amending s. 288.706, F.S.; deleting

10         references to the Florida Black Business

11         Investment Board, Inc., and black business

12         investment corporations from a list of certain

13         financial institutions maintained by the

14         Department of Management Services; requiring

15         the Department of Management Services to

16         collaborate with the Florida Black Business

17         Investment Board, Inc., and the Office of

18         Tourism, Trade, and Economic Development for

19         certain purposes; creating s. 288.7065, F.S.;

20         providing a short title; amending s. 288.707,

21         F.S.; revising provisions creating the Florida

22         Black Business Investment Board, Inc.; revising

23         legislative findings; creating the board;

24         requiring the board to contract with the Office

25         of Tourism, Trade, and Economic Development for

26         certain purposes; specifying application of

27         public records and public meetings

28         requirements; providing for appointment of a

29         board of directors; specifying terms of office

30         and experience requirements of board members;

31         providing for filling of board vacancies;

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 1         requiring the Governor to appoint a chair;

 2         providing for meetings; requiring members to

 3         serve without compensation; providing for

 4         reimbursement of expenses; requiring members to

 5         file a statement of financial interests;

 6         amending s. 288.708, F.S.; providing for

 7         appointment and duties of the president of the

 8         board; deleting a provision specifying prudent

 9         use of certain funds and requiring use of funds

10         according to applicable laws, bylaws, or

11         contracts; applying certain salary limitation

12         provisions to employees of the board; requiring

13         the Department of Management Services to

14         establish a lease-agreement program for board

15         employees; amending s. 288.709, F.S.; revising

16         the powers of the board; amending s. 288.7091,

17         F.S.; revising the duties of the board;

18         creating s. 288.7094, F.S.; providing a

19         definition; specifying eligibility of certain

20         black business investment corporations to

21         participate in the Black Business Loan Program;

22         requiring the Office of Tourism, Trade, and

23         Economic Development to give priority

24         consideration to such corporations for

25         participation in the program; creating s.

26         288.7102, F.S.; establishing the Black Business

27         Loan Program in the Office of Tourism, Trade,

28         and Economic Development; requiring the office

29         to disburse funds appropriated by the

30         Legislature, through certified eligible

31         recipients, to certain black business

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 1         enterprises; providing duties and

 2         responsibilities of the office and the board in

 3         administering the program; establishing a

 4         competitive application and annual

 5         certification process for eligible recipients

 6         for funds to provide loans, loan guarantees,

 7         and investments to black business enterprises;

 8         requiring an allocation policy for equitable

 9         distribution throughout the state; providing

10         eligibility requirements for recipients to

11         receive funds and to provide loans, loan

12         guarantees, or investments; requiring annual

13         certification of eligibility; providing for

14         award agreements and reimbursement of funds

15         under certain circumstances; requiring the

16         office to adopt rules; requiring the board to

17         adopt policies and procedures; providing

18         restrictions for the use of funds by black

19         business investment corporations; providing

20         legislative intent if an investment mechanism

21         is held invalid; providing for reasonable

22         profit for a black business investment

23         corporation; creating s. 288.71025, F.S.;

24         providing a prohibited act; providing for

25         filing of a civil complaint, imposition of a

26         fine, and the payment of court costs and

27         reasonable attorney's fees; creating s.

28         288.7103, F.S.; providing black business

29         enterprise eligibility requirements for

30         receiving loans, loan guarantees, or

31         investments; amending s. 288.712, F.S.;

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 1         revising provisions relating to guarantor funds

 2         to assist qualified black business enterprises

 3         in obtaining surety bonds and other credit

 4         instruments; authorizing the board to contract

 5         with regulated surety companies; revising uses

 6         of the Black Contractors Bond Trust Fund;

 7         eliminating the Black Business Loan Guaranty

 8         Trust Fund and the Black Contractors Bond

 9         Program Administrative and Loss Reserve Fund;

10         revising board exceptions to laws and rules

11         related to a guaranty company; requiring board

12         adoption of policies and procedures relating to

13         board guarantee of loss and to required payment

14         of premiums; authorizing contracting with a

15         private entity to administer a black

16         contractors bonding program; delineating board

17         use of a surety bond company; delineating board

18         requirements for implementing the black

19         contractors bonding program; amending s.

20         288.714, F.S.; requiring recipients to provide

21         quarterly and annual reports; specifying report

22         requirements; requiring the board to provide a

23         summary of such reports to the office;

24         requiring the board to submit an annual program

25         report to the Governor and Legislature;

26         specifying report requirements; amending s.

27         288.9015, F.S.; requiring Enterprise Florida,

28         Inc., to collaborate with the Florida Black

29         Business Investment Board, Inc., and the Office

30         of Tourism, Trade, and Economic Development for

31         certain purposes; requiring the Office of

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 1         Program Policy Analysis and Government

 2         Accountability to submit a status report to the

 3         Governor and the Legislature on the

 4         implementation of the Florida Black Business

 5         Investment Act by the Office of Tourism, Trade,

 6         and Economic Development, the Florida Black

 7         Business Investment Board, Inc., and program

 8         fund recipients; requiring the Office of

 9         Program Policy Analysis and Government

10         Accountability to conduct a program review of

11         the performance of the Office of Tourism,

12         Trade, and Economic Development, the Florida

13         Black Business Investment Board, Inc., and

14         program fund recipients in meeting goals of the

15         Florida Black Business Investment Act and to

16         submit a program review report to the Governor

17         and the Legislature; amending ss. 17.11,

18         287.055, 288.90151, 625.3255, 657.042, and

19         658.67, F.S.; conforming references to changes

20         made by the act; repealing s. 288.7092, F.S.,

21         relating to return on investment from

22         activities of the corporation; repealing s.

23         288.7095, F.S., relating to duties of black

24         business investment corporations; repealing s.

25         288.71, F.S., relating to conditions for board

26         action; repealing s. 288.7101, F.S., relating

27         to the state employee leasing program of the

28         Department of Management Services for employees

29         of the Florida Black Business Investment Board,

30         Inc.; repealing s. 288.711, F.S., relating to

31         the Florida Investment Incentive Trust Fund;

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 1         repealing s. 288.713, F.S., relating to capital

 2         participation instruments; providing a

 3         legislative finding regarding use of state

 4         funds received by the board through fiscal year

 5         2005-2006; providing an appropriation;

 6         providing an effective date.

 7  

 8  Be It Enacted by the Legislature of the State of Florida:

 9  

10         Section 1.  Paragraphs (g), (h), (i), and (j) of

11  subsection (2) of section 14.2015, Florida Statutes, are

12  redesignated as paragraphs (h), (i), (j), and (k),

13  respectively, and a new paragraph (g) is added to that

14  subsection, to read:

15         14.2015  Office of Tourism, Trade, and Economic

16  Development; creation; powers and duties.--

17         (2)  The purpose of the Office of Tourism, Trade, and

18  Economic Development is to assist the Governor in working with

19  the Legislature, state agencies, business leaders, and

20  economic development professionals to formulate and implement

21  coherent and consistent policies and strategies designed to

22  provide economic opportunities for all Floridians. To

23  accomplish such purposes, the Office of Tourism, Trade, and

24  Economic Development shall:

25         (g)  Administer the Black Business Loan Program, the

26  purpose of which is to leverage state, local, and private

27  funds to provide loans and loan guarantees to black business

28  enterprises that cannot obtain capital through conventional

29  lending institutions but that otherwise could compete

30  successfully in the private sector.

31  

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 1         Section 2.  Section 288.702, Florida Statutes, is

 2  amended to read:

 3         288.702  Short title.--This section and sections

 4  288.703-288.706 This act shall be known and may be cited as

 5  the "Florida Small and Minority Business Assistance Act of

 6  1985."

 7         Section 3.  Paragraph (a) of subsection (3) of section

 8  288.703, Florida Statutes, is amended to read:

 9         288.703  Definitions.--As used in this act, the

10  following words and terms shall have the following meanings

11  unless the content shall indicate another meaning or intent:

12         (3)  "Minority person" means a lawful, permanent

13  resident of Florida who is:

14         (a)  An African American, a person having origins in

15  any of the black racial groups of the African Diaspora,

16  regardless of cultural origin.

17         Section 4.  Subsection (11) of section 288.706, Florida

18  Statutes, is amended, and subsection (12) is added to that

19  section, to read:

20         288.706  Florida Minority Business Loan Mobilization

21  Program.--

22         (11)  The Department of Management Services shall

23  maintain a listing of financial institutions willing to

24  participate in the Florida Minority Business Loan Mobilization

25  Program, which may include the Florida Black Business

26  Investment Board, Inc., and black business investment

27  corporations. This list of financial institutions is shall not

28  be exclusive. A minority business enterprise vendor who has a

29  working relationship with a financial institution is

30  encouraged to request that the financial institution apply to

31  participate as a financial institution for the program.

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 1         (12)  The Department of Management Services shall

 2  collaborate with the Florida Black Business Investment Board,

 3  Inc., and the Office of Tourism, Trade, and Economic

 4  Development to assist in the development and enhancement of

 5  black business enterprises.

 6         Section 5.  Section 288.7065, Florida Statutes, is

 7  created to read:

 8         288.7065  Short title.--This section and sections

 9  288.707-288.714 may be cited as the "Florida Black Business

10  Investment Act."

11         Section 6.  Section 288.707, Florida Statutes, is

12  amended to read:

13         (Substantial rewording of section. See

14         s. 288.707, F.S., for present text.)

15         288.707  Florida Black Business Investment Board, Inc.;

16  findings; creation; membership; organization; meetings;

17  disclosure.--

18         (1)  The Legislature finds that the public interest of

19  the state will be served by the creation of a not-for-profit

20  public-private entity the primary mission of which shall be to

21  assist in the development and expansion of black business

22  enterprises by:

23         (a)  Advising the Office of Tourism, Trade, and

24  Economic Development in its oversight of the Black Business

25  Loan Program and creating long-range strategic policy for the

26  program.

27         (b)  Evaluating the unmet need for capital by black

28  business enterprises in the state.

29         (c)  Creating partnerships between state and local

30  governments and private enterprises to aid in the development

31  and expansion of black business enterprises.

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 1         (d)  Providing a network of information resources for

 2  black business enterprises and providing technical assistance

 3  through this network.

 4         (2)(a)  There is created a not-for-profit corporation

 5  to be known as the "Florida Black Business Investment Board,

 6  Inc.," referred to in ss. 288.707-288.714 as the board, which

 7  shall be registered, incorporated, organized, and operated in

 8  compliance with chapter 617 and shall not be a unit or entity

 9  of state government. The Legislature determines, however, that

10  public policy dictates that the board operate in the most open

11  and accessible manner consistent with its public purpose.

12  Therefore, the Legislature specifically declares that the

13  board and its advisory committees or similar groups created by

14  the board, including any subsidiaries, are subject to the

15  provisions of chapter 119, relating to public records, and the

16  provisions of chapter 286, relating to public meetings and

17  records.

18         (b)  The board shall contract with the Office of

19  Tourism, Trade, and Economic Development to implement the

20  provisions of ss. 288.707-288.714.

21         (3)  The board shall be governed by a board of

22  directors chosen as follows:

23         (a)  Five members appointed by the Governor who shall

24  serve terms of 4 years each, except that in making initial

25  appointments, the Governor shall appoint three members to

26  serve for terms of 2 years each and two members to serve for

27  terms of 3 years each.

28         (b)  One member appointed by the President of the

29  Senate who shall serve a term of 2 years.

30         (c)  One member appointed by the Speaker of the House

31  of Representatives who shall serve a term of 2 years.

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 1         (d)  The vice chair of Enterprise Florida, Inc., or his

 2  or her designee.

 3         (e)  The chair of the Florida Development Finance

 4  Corporation created pursuant to s. 288.9604.

 5         (f)  Four presidents of participating black business

 6  investment corporations who shall be appointed by the

 7  Executive Director of the Office of Tourism, Trade, and

 8  Economic Development upon the recommendation of the Florida

 9  Consortium of Black Business Investment Corporations, Inc., to

10  serve for terms of 3 years each. Each shall be eligible for

11  reappointment to one additional term of 3 years.

12         (4)  Members of the board must have experience in

13  business, including financial services, banking, or economic

14  development. At least one of the Governor's appointees must

15  have experience in venture capitalism.

16         (5)  Any person appointed to fill a vacancy on the

17  board shall be appointed in a like manner and shall serve for

18  only the remainder of the unexpired term. Any member shall be

19  eligible for reappointment.

20         (6)  The Governor shall appoint the chairperson, who

21  shall be a member of the board and shall serve at the pleasure

22  of the Governor. The board shall annually elect one of its

23  members as vice chairperson.

24         (7)  The board shall meet at least four times annually

25  upon the call of the chair or vice chair or at the request of

26  a majority of the membership. A majority of the total number

27  of current members of the board shall constitute a quorum. The

28  board may take official action by a majority vote of the

29  members present at any meeting at which a quorum is present.

30         (8)  Members of the board shall serve without

31  compensation, but members, the president of the board, and

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 1  other board employees are entitled to reimbursement for all

 2  reasonable, necessary, and actual expenses as determined and

 3  approved by the board pursuant to s. 112.061.

 4         (9)  Each member of the board who is not otherwise

 5  required to disclose financial interests pursuant to s. 8,

 6  Art. II of the State Constitution or s. 112.3144 shall file a

 7  statement of financial interests pursuant to s. 112.3145.

 8         Section 7.  Section 288.708, Florida Statutes, is

 9  amended to read:

10         288.708  President; employees.--

11         (1)  The president of the board corporation, who may

12  also be designated as secretary-treasurer, shall be appointed

13  by the board and shall serve at the pleasure of the board. The

14  board shall establish and adjust the compensation of the

15  president. The president shall be the chief administrative and

16  operational officer of the board corporation and shall direct

17  and supervise administrative affairs and the general

18  management of the board corporation. The board may delegate to

19  its president those powers and responsibilities it deems

20  appropriate, except for appointment of the president. The

21  president:

22         (a)  May contract with or employ legal and technical

23  experts and such other employees, permanent and temporary, as

24  shall be authorized by the board;

25         (b)  Shall attend meetings of the board; and

26         (c)  Shall cause copies to be made of all minutes and

27  other records and documents of the board and shall certify

28  that such copies are true copies. All persons dealing with the

29  corporation or board may rely upon such certification.

30         (2)  The corporation and its officers and board members

31  are responsible for the prudent use of all public and private

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 1  funds and shall ensure that the use of such funds is in

 2  accordance with all applicable laws, bylaws, or contractual

 3  requirements. An employee of the board corporation may not

 4  receive compensation for employment that exceeds the salary

 5  paid to the Governor, unless the board corporation and the

 6  employee have executed a contract that prescribes specific and

 7  measurable performance outcomes for the employee, the

 8  satisfaction of which provides the basis for the award of

 9  incentive payments that increase the employee's total

10  compensation to a level above the salary paid to the Governor.

11  The Department of Management Services shall establish a

12  lease-agreement program under which an employee of the board,

13  as of June 30, 2002, retains his or her status as a state

14  employee until the employee voluntarily or involuntarily

15  terminates his or her status with the board. Status as a state

16  employee shall include the right to participate in the Florida

17  Retirement System.

18         Section 8.  Section 288.709, Florida Statutes, is

19  amended to read:

20         288.709  Powers of the Florida Black Business

21  Investment Board, Inc.--The board shall have all the powers

22  granted under chapter 617 and any powers necessary or

23  convenient to carry out and effectuate the purposes and

24  provisions of ss. 288.707-288.714, including, but not limited

25  to, the power to:

26         (1)  Adopt bylaws for the regulation of its affairs and

27  the conduct of its business and adopt policies to implement

28  the provisions of law conferring duties upon it. The Such

29  bylaws shall provide that the board corporation is subject to

30  the requirements of s. 24, Art. I of the State Constitution

31  and chapter 119 and s. 286.011.

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 1         (2)  Adopt an official seal.

 2         (3)  Sue and be sued in its own name.

 3         (4)  Make and execute contracts and other instruments

 4  necessary or convenient for the exercise of its power and

 5  functions.

 6         (5)  Acquire, hold, and dispose of personal property

 7  for its corporate purposes.

 8         (2)(6)  Enter into agreements or other transactions

 9  with any federal, state, or local agency or private entity.

10         (7)  Encourage financial institutions to participate in

11  consortia for the purpose of investing in black business

12  enterprises.

13         (8)  Ensure that funds available to the board for

14  purposes set forth in ss. 288.707-288.714 are disbursed on a

15  statewide basis and are not concentrated in one geographical

16  area.

17         (3)(9)  Invest any funds held in reserves or sinking

18  funds, or any funds not required for immediate disbursement,

19  in such investments as may be authorized for trust funds under

20  s. 215.47; however, such investments will be made on behalf of

21  the board by the Chief Financial Officer or by another trustee

22  appointed for that purpose.

23         (4)(10)  Appear in its own behalf before boards,

24  commissions, departments, or other agencies of municipal,

25  county, state, or Federal Government.

26         (11)  Procure insurance or require bond against any

27  loss in connection with its property in such amounts and from

28  such insurers as may be necessary or desirable.

29         (5)(12)  Apply for, accept, and disburse from any state

30  or nonstate source Receive and accept from any federal, state,

31  or local agency grants, loans, or advances for, or in aid of,

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 1  the purposes of ss. 288.707-288.714, and to receive and accept

 2  contributions from any source of either money, property,

 3  labor, or other things of value, to be held, used, and applied

 4  for said purposes.

 5         (13)  Create, issue, and buy and sell stock, evidences

 6  of indebtedness, and other capital participation instruments;

 7  to hold such stock, evidences of indebtedness, and capital

 8  participation instruments; and to underwrite the creation of a

 9  capital market for these securities in a manner designed to

10  enhance development of capital ownership in the target group.

11         (6)(14)  Provide and pay for such advisory services and

12  technical assistance as may be necessary or desirable to carry

13  out the purposes of this act.

14         (7)(15)  Engage in special programs to enhance the

15  development of black business enterprises as authorized by

16  this act.

17         (16)  Promote black ownership of financial institutions

18  in Florida.

19         (17)  Take, hold, and improve property, including real

20  property.

21         (18)  Do any and all things necessary or convenient to

22  carry out the purposes of, and exercise the powers given and

23  granted in, ss. 288.707-288.714, and exercise any other

24  powers, rights, or responsibilities of a corporation.

25         (8)(19)  In addition to any indemnification available

26  under chapter 617, indemnify, and purchase and maintain

27  insurance on behalf of, directors, officers, and employees of

28  the board corporation and its boards against any personal

29  liability or accountability by reason of actions taken while

30  acting within the scope of their authority.

31  

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 1         (9)(20)  Provide in its bylaws that, upon the

 2  dissolution of the board corporation, all of its assets

 3  acquired through the use of state funds, after payment of all

 4  legal debts and liabilities, revert to the this state.

 5         Section 9.  Section 288.7091, Florida Statutes, is

 6  amended to read:

 7         (Substantial rewording of section. See

 8         s. 288.7091, F.S., for present text.)

 9         288.7091  Duties of the Florida Black Business

10  Investment Board, Inc.--The board shall:

11         (1)  Serve as an advisory board to the Office of

12  Tourism, Trade, and Economic Development, through contract

13  with the office, to assist the office with the implementation

14  of ss. 288.707-288.714.

15         (2)  Aid the development and expansion of black

16  business enterprises by leveraging state, local, and private

17  funds to be held by the board for use according to the

18  provisions of ss. 288.707-288.714.

19         (3)  Serve as the clearinghouse for information and

20  sources of technical assistance that will enhance the

21  development and expansion of black business enterprises and

22  facilitate the provision of technical assistance in

23  communities in which such services are otherwise underserved.

24         (4)  Aggressively market the Black Business Loan

25  Program and related services to black business enterprises

26  through all appropriate media outlets, including media

27  targeting the African-American community.

28         (5)  Collaborate with Enterprise Florida, Inc., or its

29  affiliates to develop and expand black business enterprises.

30         (6)  Collaborate with the Department of Transportation,

31  the Department of Management Services, including the Florida

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 1  Minority Business Loan Mobilization Program, Workforce

 2  Florida, Inc., and other state agencies and partners, the

 3  State University System, including the Florida Agricultural

 4  and Mechanical University's Institute of Urban Policy and

 5  Commerce, school boards, and local governments to create a

 6  network of information and to identify available resources to

 7  enhance the development and expansion of black business

 8  enterprises.

 9         (7)  Develop strategies to increase financial

10  institution investment in black business enterprises.

11         (8)  Provide a 5-year projection of the need for

12  capital by black business enterprises. The board may contract

13  with an independent entity to prepare the projection once

14  every 5 years.

15         (9)  Annually provide for a financial audit, as defined

16  in s. 11.45, of the board's accounts and records by an

17  independent certified public accountant. The audit shall

18  include an explanation of all investments made by the board

19  and an explanation of administrative costs. Within 6 months

20  after the end of the fiscal year, the audit report shall be

21  provided to the Governor, the President of the Senate, the

22  Speaker of the House of Representatives, and the Auditor

23  General.

24         Section 10.  Section 288.7094, Florida Statutes, is

25  created to read:

26         288.7094  Black business investment corporations.--

27         (1)  The term "black business investment corporation"

28  means a corporation that provides loans, loan guarantees, or

29  investments to black business enterprises under s. 288.7102.

30         (2)  A black business investment corporation that meets

31  the requirements of s. 288.7102(3) is eligible to participate

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 1  in the Black Business Loan Program and shall receive priority

 2  consideration by the Office of Tourism, Trade, and Economic

 3  Development for participation in the program.

 4         Section 11.  Section 288.7102, Florida Statutes, is

 5  created to read:

 6         288.7102  Black Business Loan Program.--The Black

 7  Business Loan Program is established in the Office of Tourism,

 8  Trade, and Economic Development. Under the program, the office

 9  shall annually certify eligible recipients and subsequently

10  disburse funds appropriated by the Legislature, through such

11  eligible recipients, to black business enterprises that cannot

12  obtain capital through conventional lending institutions but

13  that could otherwise compete successfully in the private

14  sector.

15         (1)  The office shall establish a uniform, open, and

16  competitive application and annual certification process for

17  eligible recipients who seek funds to provide loans, loan

18  guarantees, or investments in black business enterprises

19  pursuant to the Florida Black Business Investment Act. The

20  board shall receive the applications and make recommendations

21  for certification to the office.

22         (2)  The office, in consultation with the board, shall

23  develop an allocation policy to ensure that services provided

24  under ss. 288.707-288.714 for the benefit of black business

25  enterprises are disbursed equitably throughout the state. The

26  board shall facilitate the formation of black business

27  investment corporations in communities that are not served by

28  such corporations.

29         (3)  To be eligible to receive funds and provide loans,

30  loan guarantees, or investments under this section, a

31  recipient must:

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 1         (a)  Be a corporation registered in the state.

 2         (b)  Demonstrate that its board of directors includes

 3  citizens of the state experienced in the development of black

 4  business enterprises.

 5         (c)  Demonstrate that the recipient has a business plan

 6  that allows the recipient to operate in a manner consistent

 7  with ss. 288.707-288.714 and the rules of the office.

 8         (d)  Demonstrate that the recipient has the technical

 9  skills to analyze and evaluate applications by black business

10  enterprises for loans, loan guarantees, or investments.

11         (e)  Demonstrate that the recipient has established

12  viable partnerships with public and private funding sources,

13  economic development agencies, and workforce development and

14  job referral networks.

15         (f)  Demonstrate that the recipient can provide a

16  private match equal to 20 percent of the amount of funds

17  provided by the office.

18         (g)  Agree to maintain the recipient's books and

19  records relating to funds received by the office according to

20  generally accepted accounting principles and in accordance

21  with the requirements of s. 215.97(7) and to make those books

22  and records available to the office for inspection upon

23  reasonable notice.

24         (4)  The board shall annually recommend to the office

25  certification of each eligible recipient, who must meet the

26  provisions of ss. 288.707-288.714, the terms of the contract

27  between the recipient and the office, and any other applicable

28  state or federal laws. An entity may not receive funds under

29  ss. 288.707-288.714 unless the entity meets annual

30  certification requirements.

31  

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 1         (5)  Upon approval by the office and prior to release

 2  of the funds as provided in this section, the office shall

 3  issue a letter certifying the applicant as qualified for an

 4  award. The office and the applicant shall enter into an

 5  agreement that sets forth the conditions for award of the

 6  funds. The agreement must include the total amount of funds

 7  awarded; the performance conditions that must be met once the

 8  funding has been awarded, including, but not limited to,

 9  compliance with all of the requirements of this section for

10  eligible recipients of funds under this section; and sanctions

11  for failure to meet performance conditions, including any

12  provisions to recover awards.

13         (6)(a)  The office, in consultation with the board,

14  shall adopt rules pursuant to ss. 120.536(1) and 120.54 to

15  implement this section.

16         (b)  The board shall adopt policies and procedures

17  necessary to implement this section.

18         (7)  A black business investment corporation certified

19  by the office as an eligible recipient under this section is

20  authorized to use funds appropriated for the Black Business

21  Loan Program in any of the following forms:

22         (a)  Purchases of stock, preferred or common, voting or

23  nonvoting; however, no more than 40 percent of the funds may

24  be used for direct investments in black business enterprises;

25         (b)  Loans or loan guarantees, with or without

26  recourse, in either a subordinated or priority position; or

27         (c)  Technical support to black business enterprises,

28  not to exceed 7 percent of the funds received, and direct

29  administrative costs, not to exceed 10 percent of the funds

30  received.

31  

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 1         (8)  It is the intent of the Legislature that if any

 2  one type of investment mechanism authorized in subsection (7)

 3  is held to be invalid, all other valid mechanisms remain

 4  available.

 5         (9)  All loans, loan guarantees, and investments, and

 6  any income related thereto, shall be used to carry out the

 7  public purpose of ss. 288.707-288.714, which is to develop

 8  black business enterprises. This subsection does not preclude

 9  a reasonable profit for the participating black business

10  investment corporation or for return of equity developed to

11  the state and participating financial institutions upon any

12  distribution of the assets or excess income of the investment

13  corporation.

14         Section 12.  Section 288.71025, Florida Statutes, is

15  created to read:

16         288.71025  Prohibited acts; penalties.--

17         (1)  It is unlawful for any person to hold itself out

18  as a black business investment corporation without being

19  certified by the board as eligible to participate in the

20  Florida Black Business Loan Program.

21         (2)  In addition to any other penalties or remedies

22  provided under law, the board may bring a civil action in any

23  court of competent jurisdiction against any person for a

24  knowing or willful violation of this section. Upon an adverse

25  adjudication, the court may impose a civil penalty of up to

26  $500 and payment of court costs and reasonable attorney's fees

27  incurred by the plaintiff.

28         Section 13.  Section 288.7103, Florida Statutes, is

29  created to read:

30         288.7103  Eligibility for loan, loan guarantee, or

31  investment.--A black business enterprise is not eligible to

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 1  receive a loan, loan guarantee, or investment from funds

 2  disbursed pursuant to s. 288.7102 unless the black business

 3  enterprise demonstrates that:

 4         (1)  The proposed loan, loan guarantee, or investment

 5  is economically sound and will assist the black business

 6  enterprise in entering the conventional lending market,

 7  increasing opportunities for employment, and strengthening the

 8  economy of the state.

 9         (2)  The black business enterprise will be able to

10  compete successfully in the private sector if the black

11  business enterprise obtains the requested financial assistance

12  and has obtained or will obtain appropriate and credible

13  technical or managerial support through an organization

14  approved by the corporation.

15         Section 14.  Section 288.712, Florida Statutes, is

16  amended to read:

17         (Substantial rewording of section. See

18         s. 288.712, F.S., for present text.)

19         288.712  Guarantor funds.--

20         (1)  The board is authorized to establish, with or

21  without public or private partners, guarantor funds to assist

22  qualified black business enterprises in obtaining surety bonds

23  and other credit instruments when required.

24         (2)  The board may contract with a regulated surety

25  company to conduct a surety bond program for black business

26  enterprises.

27         (3)  For purposes of this section, the board may

28  utilize the Black Contractors Bond Trust Fund, consisting of

29  moneys deposited or credited to the Black Contractors Bond

30  Trust Fund pursuant to any appropriation made by law; any

31  grants, gifts, and contributions received pursuant to ss.

                                  21

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 1  288.707-288.714; all moneys recovered following defaults; all

 2  premiums charged and collected in accordance with this section

 3  and any interest earned; and any other moneys obtained by the

 4  board for this purpose. The fund shall be administered by the

 5  board in trust for the purposes of this section and shall at

 6  no time be part of general public funds under the following

 7  procedures:

 8         (a)  Any claims against the state arising from defaults

 9  shall be payable from the Black Contractors Bond Trust Fund.

10  Nothing in this section grants or pledges to any obligee or

11  other person any state moneys other than the moneys in the

12  Black Contractors Bond Trust Fund.

13         (b)  The board may guarantee bonds executed by sureties

14  for black business enterprises under this section as

15  principals on contracts with the state, any political

16  subdivision or instrumentality, or any person as the obligee.

17  The board, as guarantor, may exercise all the rights and

18  powers of a company authorized by the Department of Financial

19  Services to guarantee bonds under chapter 624, but otherwise

20  is not subject to any laws related to a guaranty company under

21  chapter 624 or to any rules of the department.

22         (c)  The board shall adopt policies and procedures for

23  the application for bond guarantees and for the review and

24  approval of applications for bond guarantees submitted by

25  sureties that execute bonds eligible for guarantees under this

26  section.

27         (d)  In accordance with the policies and procedures

28  adopted pursuant to this section, the board may guarantee up

29  to 90 percent of the loss incurred and paid by sureties on

30  bonds guaranteed under this section.

31  

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 1         (e)  The policies and procedures of the board shall

 2  require the black business enterprise to pay a premium in

 3  advance for the bond to be established by the board. All

 4  premiums paid by the black business enterprise shall be paid

 5  into the Black Contractors Bond Trust Fund.

 6         (f)  The penal sum amounts of all outstanding bonds

 7  issued by the board may not exceed the amount of moneys in the

 8  Black Contractors Bond Trust Fund.

 9         (g)  Any funds to the credit of the Black Contractors

10  Bond Trust Fund in excess of the amount necessary to fund the

11  appropriation authority for the fund shall be held as a loss

12  reserve to pay claims arising from defaults on surety bonds

13  guaranteed in accordance with this section.

14         (4)  This section does not prohibit or restrict the

15  board from entering into a joint venture or other contractual

16  agreement with a private insurer or from investing in a

17  private entity to handle all or part of a black contractors

18  bonding program for black business enterprises. The board is

19  authorized and encouraged to contract with a regulated surety

20  company to conduct a surety bond program for black business

21  enterprises. Moneys from the Black Contractors Bond Trust Fund

22  may be used for these purposes. The board may approve one

23  application per fiscal year from each surety company to

24  support one fiscal year of that company's activities under

25  this section. A surety bond company that applies for a bond

26  guarantee under this section, regardless of whether the

27  guarantee is approved, is not restricted from also applying

28  for individual bond guarantees under this section.

29         (5)  The board shall do all of the following to

30  implement the black contractors bonding program:

31  

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 1         (a)  Conduct outreach, marketing, and recruitment of

 2  black contractors.

 3         (b)  Provide assistance to the Office of Supplier

 4  Diversity within the Department of Management Services, as

 5  needed, to certify new black business enterprises and to train

 6  appropriate department staff.

 7         (c)  Provide business development services to black

 8  business enterprises in the developmental and transitional

 9  stages of the program, including financing and bonding

10  assistance and management and technical assistance.

11         (d)  Develop a mentor program to bring businesses into

12  a working relationship with black contractors in a way that

13  commercially benefits both entities and serves the purpose of

14  the program.

15         (e)  By December 31, 2007, prepare and submit to the

16  Governor a detailed report outlining and evaluating the

17  progress made in implementing the black contractors bonding

18  program.

19         (f)  Establish a process by which black contractors may

20  apply for contract assistance, financial and bonding

21  assistance, management and technical assistance, and mentoring

22  opportunities.

23         Section 15.  Section 288.714, Florida Statutes, is

24  amended to read:

25         (Substantial rewording of section. See

26         s. 288.714, F.S., for present text.)

27         288.714  Quarterly and annual reports.--

28         (1)  Each recipient of state funds under s. 288.7102

29  shall provide to the board a quarterly report within 15 days

30  after the end of each calendar quarter which includes a

31  

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 1  detailed summary of the recipient's performance of the duties

 2  imposed by s. 288.7102, including, but not limited to:

 3         (a)  The dollar amount of all loans or loan guarantees

 4  made to black business enterprises, the percentages of the

 5  loans guaranteed, and the names and identification of the

 6  types of businesses served.

 7         (b)  Loan performance information.

 8         (c)  The amount and nature of all other financial

 9  assistance provided to black business enterprises.

10         (d)  The amount and nature of technical assistance

11  provided to black business enterprises, including technical

12  assistance services provided in areas in which such services

13  are otherwise unavailable.

14         (e)  A balance sheet for the recipient, including an

15  explanation of all investments and administrative and

16  operational expenses.

17         (f)  A summary of all services provided to non-black

18  business enterprises, including the dollar value and nature of

19  such services and the names and identification of the types of

20  businesses served.

21         (g)  Any other information required by policies adopted

22  by the board.

23         (2)  The board must compile and provide to the office a

24  summary of all quarterly reports within 30 days after the end

25  of each calendar quarter which includes a detailed summary of

26  the recipient's performance of the duties imposed by s.

27  288.7102.

28         (3)  By May 1 of each year, the board shall provide to

29  the Governor, the President of the Senate, and the Speaker of

30  the House of Representatives a detailed report of the

31  performance of the Black Business Loan Program, including:

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 1         (a)  A cumulative summary of quarterly report data

 2  required by subsection (1).

 3         (b)  A description of the strategies implemented by the

 4  board to increase private investment in black business

 5  enterprises.

 6         (c)  A summary of the board's performance of its duties

 7  under ss. 288.707-288.712.

 8         (d)  The most recent 5-year projection of the need for

 9  capital by black business enterprises.

10         (e)  Recommendations for legislative or other changes

11  to enhance the development and expansion of black business

12  enterprises in the state.

13         (f)  A projection of the program's activities during

14  the next 12 months.

15         Section 16.  Subsection (4) of section 288.9015,

16  Florida Statutes, is amended to read:

17         288.9015  Enterprise Florida, Inc.; purpose; duties.--

18         (4)  Enterprise Florida, Inc., shall incorporate the

19  needs of small and minority businesses into the

20  economic-development, international-trade and

21  reverse-investment, and workforce-development responsibilities

22  assigned to the organization by this section. Where

23  practicable and consistent with the expertise of the Black

24  Business Investment Board, Inc., Enterprise Florida, Inc.,

25  shall collaborate contract with the Florida Black Business

26  Investment Board, Inc., and the Office of Tourism, Trade, and

27  Economic Development corporation for the delivery of services

28  in fulfillment of the responsibilities of Enterprise Florida,

29  Inc., relating to small and minority businesses.

30         Section 17.  The Office of Program Policy Analysis and

31  Government Accountability shall prepare a status report on the

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 1  initial implementation of the Florida Black Business

 2  Investment Act by the Office of Tourism, Trade, and Economic

 3  Development, the Florida Black Business Investment Board,

 4  Inc., and the recipients of funds disbursed pursuant to s.

 5  288.7102, Florida Statutes, and shall provide the report to

 6  the Governor, the President of the Senate, and the Speaker of

 7  the House of Representatives by December 1, 2008. The office

 8  shall conduct a program review of the performance of the

 9  Office of Tourism, Trade, and Economic Development, the

10  Florida Black Business Investment Board, Inc., and the

11  recipients of funds disbursed pursuant to s. 288.7102, Florida

12  Statutes, in meeting the goals of the Florida Black Business

13  Investment Act and shall provide a report to the Governor, the

14  President of the Senate, and the Speaker of the House of

15  Representatives by December 1, 2009.

16         Section 18.  Subsection (2) of section 17.11, Florida

17  Statutes, is amended to read:

18         17.11  To report disbursements made.--

19         (2)  The Chief Financial Officer shall also cause to

20  have reported from the Florida Accounting Information Resource

21  Subsystem no less than quarterly the disbursements which

22  agencies made to small businesses, as defined in the Florida

23  Small and Minority Business Assistance Act of 1985; to

24  certified minority business enterprises in the aggregate; and

25  to certified minority business enterprises broken down into

26  categories of minority persons, as well as gender and

27  nationality subgroups. This information shall be made

28  available to the agencies, the Office of Supplier Diversity,

29  the Governor, the President of the Senate, and the Speaker of

30  the House of Representatives. Each agency shall be responsible

31  for the accuracy of information entered into the Florida

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 1  Accounting Information Resource Subsystem for use in this

 2  reporting.

 3         Section 19.  Paragraph (d) of subsection (3) of section

 4  287.055, Florida Statutes, is amended to read:

 5         287.055  Acquisition of professional architectural,

 6  engineering, landscape architectural, or surveying and mapping

 7  services; definitions; procedures; contingent fees prohibited;

 8  penalties.--

 9         (3)  PUBLIC ANNOUNCEMENT AND QUALIFICATION

10  PROCEDURES.--

11         (d)  Each agency shall evaluate professional services,

12  including capabilities, adequacy of personnel, past record,

13  experience, whether the firm is a certified minority business

14  enterprise as defined by the Florida Small and Minority

15  Business Assistance Act of 1985, and other factors determined

16  by the agency to be applicable to its particular requirements.

17  When securing professional services, an agency must endeavor

18  to meet the minority business enterprise procurement goals

19  under s. 287.09451.

20         Section 20.  Subsection (6) of section 288.90151,

21  Florida Statutes, is amended to read:

22         288.90151  Return on investment from activities of

23  Enterprise Florida, Inc.--

24         (6)  Enterprise Florida, Inc., shall fully comply with

25  the performance measures, standards, and sanctions in its

26  contracts with the Office of Tourism, Trade, and Economic

27  Development under s. 14.2015(2)(i)(h) and (7). The Office of

28  Tourism, Trade, and Economic Development shall ensure, to the

29  maximum extent possible, that the contract performance

30  measures are consistent with performance measures that the

31  

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 1  office is required to develop and track under

 2  performance-based program budgeting.

 3         Section 21.  Section 625.3255, Florida Statutes, is

 4  amended to read:

 5         625.3255  Capital participation instrument.--An insurer

 6  may invest in any capital participation instrument or evidence

 7  of indebtedness issued by the Florida Black Business

 8  Investment Board pursuant to the Florida Small and Minority

 9  Business Assistance Act of 1985.

10         Section 22.  Paragraph (b) of subsection (4) of section

11  657.042, Florida Statutes, is amended to read:

12         657.042  Investment powers and limitations.--A credit

13  union may invest its funds subject to the following

14  definitions, restrictions, and limitations:

15         (4)  INVESTMENT SUBJECT TO LIMITATION OF ONE PERCENT OF

16  CAPITAL OF THE CREDIT UNION.--Up to 1 percent of the capital

17  of the credit union may be invested in any of the following:

18         (b)  Any capital participation instrument or evidence

19  of indebtedness issued by the Florida Black Business

20  Investment Board pursuant to the Florida Small and Minority

21  Business Assistance Act of 1985.

22         Section 23.  Paragraph (g) of subsection (4) of section

23  658.67, Florida Statutes, is amended to read:

24         658.67  Investment powers and limitations.--A bank may

25  invest its funds, and a trust company may invest its corporate

26  funds, subject to the following definitions, restrictions, and

27  limitations:

28         (4)  INVESTMENTS SUBJECT TO LIMITATION OF TEN PERCENT

29  OR LESS OF CAPITAL ACCOUNTS.--

30         (g)  Up to 10 percent of the capital accounts of a bank

31  or trust company may be invested in any capital participation

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 1  instrument or evidence of indebtedness issued by the Florida

 2  Black Business Investment Board pursuant to the Florida Small

 3  and Minority Business Assistance Act of 1985.

 4         Section 24.  Sections 288.7092, 288.7095, 288.71,

 5  288.7101, 288.711, and 288.713, Florida Statutes, are

 6  repealed.

 7         Section 25.  The Legislature finds that the public

 8  interest of the state has been served with respect to the use

 9  of any state funds received by the Florida Black Business

10  Investment Board, Inc., and any black business investment

11  corporation prior to and through the 2005-2006 fiscal year.

12         Section 26.  The nonrecurring sum of $3 million from

13  the General Revenue Fund is appropriated to the Office of

14  Tourism, Trade, and Economic Development for the 2007-2008

15  fiscal year for the purpose of implementing and administering

16  the Black Business Loan Program. Of these funds, $300,000

17  shall be provided to the Florida Black Business Investment

18  Board, Inc., for operations and administration of the board,

19  and $25,000 may be used by the Office of Tourism, Trade, and

20  Economic Development for startup costs associated with

21  administering the provisions of this act.

22         Section 27.  This act shall take effect July 1, 2007.

23  

24          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
25                          CS for SB 2860

26                                 

27  Provides that the board of the Florida Black Business
    Investment Board may bring a civil action against a person who
28  violates the section, and the court may impose a civil penalty
    of up to $500 and payment of court costs and fees.
29  
    Reduces the appropriation from $8.5 million to $3 million.
30  

31  

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