House Bill 1429

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    Florida House of Representatives - 1999                HB 1429

        By Representative Roberts






  1                      A bill to be entitled

  2         An act relating to property and services

  3         procurement; amending s. 240.205, F.S.;

  4         requiring that the Board of Regents comply with

  5         the minority business enterprise program;

  6         amending s. 240.227, F.S.; requiring that

  7         university presidents comply with the minority

  8         business enterprise program; amending s.

  9         287.012, F.S.; redefining the terms "agency"

10         and "office"; creating s. 287.085, F.S.;

11         providing for price preferences in historically

12         underutilized business zones; creating s.

13         287.086, F.S.; creating a small business

14         enterprise program with goals, incentives, and

15         size standards; amending s. 287.0943, F.S.;

16         revising certification criteria for certain

17         minority business enterprises; amending s.

18         287.09431, F.S.; providing for flexibility in

19         statewide reciprocal certification agreements;

20         amending s. 287.09451, F.S.; creating the

21         Commission on Small Business and Economic

22         Development composed of the Governor and

23         Cabinet; renaming the Minority Business

24         Advocacy and Assistance Office as the Small

25         Business and Economic Development Office;

26         revising procedural requirements for property

27         and services expenditure percentages for

28         specified minorities; requiring the office to

29         develop procedures to establish dollar goals by

30         procurement category for certain agencies;

31         providing an expiration date; providing for the

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  1         appointment of a Minority Business Ombudsman;

  2         creating a mentor and protege program; creating

  3         s. 287.09452, F.S.; establishing the Small and

  4         Minority Business Management and Technical

  5         Assistance Program; providing state purposes;

  6         providing for participation; providing program

  7         criteria and requirements; providing duties of

  8         the Small Business and Economic Development

  9         Office; authorizing the office to engage in

10         certain financial activities for program

11         purposes; requiring a report; creating s.

12         287.0946, F.S.; authorizing the Small Business

13         and Economic Development Office to establish a

14         linked-deposit program for minority and small

15         business enterprises; providing an expiration

16         date; amending s. 290.0075, F.S.; extending the

17         expiration date of the enterprise-zone

18         linked-deposit program; amending ss. 17.11,

19         255.102, 287.042, 287.057, 287.0947, 288.703,

20         F.S.; conforming provisions; amending s.

21         288.707, F.S.; providing for additional members

22         of the Florida Black Business Investment Board;

23         amending s. 288.901, F.S.; providing for an

24         additional member of the board of directors of

25         Enterprise Florida, Inc.; amending s. 288.9015,

26         F.S.; providing for Enterprise Florida, Inc.,

27         to include small and minority businesses in

28         certain programs; amending s. 288.905, F.S.;

29         revising duties of the board of directors of

30         Enterprise Florida, Inc., to include small,

31         black-owned, and minority-owned businesses;

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  1         amending s. 288.906, F.S.; clarifying the

  2         contents of the annual report of Enterprise

  3         Florida, Inc.; amending s. 288.9412, F.S.;

  4         providing for an additional member of the

  5         International Trade and Economic Development

  6         Board; amending s. 288.9414, F.S.; including

  7         minority-owned businesses within certain export

  8         assistance programs; amending s. 288.9611,

  9         F.S.; specifying a member of the capital

10         development board; amending s. 288.9613, F.S.;

11         including small and minority-owned businesses

12         within the purposes of the capital development

13         board; amending s. 288.9614, F.S.; including

14         small and minority-owned businesses within

15         certain authorized programs; providing an

16         effective date.

17

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

19

20         Section 1.  Subsection (6) of section 240.205, Florida

21  Statutes, 1998 Supplement, is amended to read:

22         240.205  Board of Regents incorporated.--The Board of

23  Regents is hereby created as a body corporate with all the

24  powers of a body corporate for all the purposes created by, or

25  that may exist under, the provisions of this chapter or laws

26  amendatory hereof and shall:

27         (6)  Acquire real and personal property and contract

28  for the sale and disposal of same and approve and execute

29  contracts for the acquisition of commodities, goods,

30  equipment, contractual services, leases of real and personal

31  property, and construction. The acquisition may include

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  1  purchase by installment or lease-purchase. Such contracts may

  2  provide for payment of interest on the unpaid portion of the

  3  purchase price.  The board may also acquire the same

  4  commodities, goods, equipment, contractual services, leases,

  5  and construction for use by a university when the contractual

  6  obligation exceeds $1 million.  Title to all real property,

  7  however acquired, shall be vested in the Board of Trustees of

  8  the Internal Improvement Trust Fund and shall be transferred

  9  and conveyed by it. Notwithstanding any other provisions of

10  this subsection, the Board of Regents shall comply with the

11  provisions of s. 287.055 for the procurement of professional

12  services as defined in that section and with s. 287.09451 and

13  other sections relating to the minority business enterprise

14  program therein.

15         Section 2.  Subsection (12) of section 240.227, Florida

16  Statutes, 1998 Supplement, is amended to read:

17         240.227  University presidents; powers and duties.--The

18  president is the chief administrative officer of the

19  university and is responsible for the operation and

20  administration of the university.  Each university president

21  shall:

22         (12)  Approve and execute contracts for the acquisition

23  of commodities, goods, equipment, services, leases of real and

24  personal property, and construction to be rendered to or by

25  the university, provided such contracts are made pursuant to

26  rules of the Board of Regents, are for the implementation of

27  approved programs of the university, and do not require

28  expenditures in excess of $1 million. The acquisition may be

29  made by installment or lease-purchase contract.  Such

30  contracts may provide for the payment of interest on the

31  unpaid portion of the purchase price. Notwithstanding any

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  1  other provisions of this subsection, university presidents

  2  shall comply with the provisions of s. 287.055 for the

  3  procurement of professional services and with s. 287.09451 and

  4  other sections relating to the minority business enterprise

  5  program, and may approve and execute all contracts for

  6  planning, construction, and equipment for projects with

  7  building programs and construction budgets approved by the

  8  Board of Regents.

  9         Section 3.  Subsections (1) and (19) of section

10  287.012, Florida Statutes, 1998 Supplement, are amended to

11  read:

12         287.012  Definitions.--The following definitions shall

13  apply in this part:

14         (1)  "Agency" means any of the various state officers,

15  departments, boards, commissions, divisions, bureaus, and

16  councils and any other unit of organization, however

17  designated, of the executive branch of state government.

18  "Agency" does not include the Board of Regents or the State

19  University System, except as it relates to compliance with the

20  state's minority business enterprise program in s. 287.09451

21  and other related sections, rules, policies, and procedures.

22         (19)  "Office" means the Small Minority Business and

23  Economic Development Advocacy and Assistance Office of the

24  Commission on Small Business and Economic Development

25  Department of Labor and Employment Security.

26         Section 4.  Section 287.085, Florida Statutes, is

27  created to read:

28         287.085  Historically underutilized business zones.--

29         (1)  Whenever two or more bids or proposals that are

30  equal with respect to price, quality, service, and minority

31  business participation are received by a state agency or the

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  1  State University System for the procurement of goods or

  2  services under a contract solicitation, a bid or proposal

  3  received from a certified zone business must be awarded a

  4  10-percent price preference, a state-of-Florida vendor

  5  preference, or weighted points amounting to 10 percent of the

  6  overall points. In order to be a certified zone business, the

  7  business must:

  8         (a)  Certify that at least 35 percent of its employees

  9  are full-time residents of a zone in this state; or

10         (b)  Certify that it is providing a commercially useful

11  function with the license to do business in the state.

12         (2)  Each agency is encouraged to spend 0.5 percent of

13  moneys actually expended on private vendors and use purchasing

14  incentives with zone businesses.

15         (3)  For the purposes of this section, the term "zone"

16  means a historically underutilized business zone in a

17  geographical area that has been designated as an enterprise

18  zone under chapter 290 or an area targeted by the Governor.

19         (4)  Spending with zone businesses that are owned and

20  operated by a woman or a minority person shall be counted

21  towards the goals specified in s. 287.09451.

22         (5)  This section does not apply to related services or

23  contracts subject to chapter 339.

24         (6)  The Commission on Small Business and Economic

25  Development shall adopt rules, monitor and report progress,

26  and do all things necessary or convenient to guide all state

27  agencies and the State University System toward making

28  expenditures for commodities, contractual services,

29  construction, and architectural and engineering services with

30  historically-underutilized-business-zones businesses.

31

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  1         Section 5.  Section 287.086, Florida Statutes, is

  2  created to read:

  3         287.086  Small business enterprise program.--

  4         (1)  An eligible small business enterprise is one that

  5  is located in an area targeted by the Governor or domiciled in

  6  the state and that is independently owned and operated and

  7  does not exceed the small business size standard in the

  8  relevant standard industry code, as outlined in 13 C.F.R.,

  9  part 121. Any business that is certified as a small business

10  by any governmental entity is deemed reciprocally certified

11  for this program upon presentation of current certification

12  letters or certificates from a governmental entity or its

13  designee to the Small Business and Economic Development

14  Office. This office must verify with the certifying

15  governmental entity that the information is current and that

16  the business does not exceed the established size standards of

17  13 C.F.R., part 121. Upon verification, the firm may be

18  registered with the Small Business and Economic Development

19  Office.

20         (2)  Purchases of competitively bid commodities,

21  construction, contractual services, and professional services

22  may be reserved by state agencies and the State University

23  System for registered small business enterprises. Reserved

24  procurement must be by economically feasible contracts or

25  portions of contracts within the capability of small business

26  enterprises as described in subsection (1). In order to assure

27  necessary competition, at least three registered firms must be

28  available in the area before the purchase may be reserved.

29  State agencies and state universities may use a 10-percent

30  price incentive or a state-of-Florida vendor incentive for

31  small business enterprises.

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  1         (3)  Payment and performance bonds may be waived on

  2  state projects for small business enterprises under s.

  3  255.05(1)(a). The state agency shall comply with the following

  4  procedures to determine whether to waive bond requirements for

  5  a project:

  6         (a)  Identify those projects that are eligible;

  7         (b)  Determine, by careful review of the technical

  8  documents, the nature, scope, and complexity of the project;

  9  and

10         (c)  Review the list to ensure that at least three

11  small business enterprises are registered to perform the work.

12         (4)  When a firm registered with the Small Business and

13  Economic Development Office is awarded a state project as a

14  prime contractor, state agencies, or state universities may

15  permit the issuance of joint checks. The use of this procedure

16  shall not be construed to create a contractual relationship

17  between the state and the supply or material house or other

18  outside vendors of the small business enterprise. It is

19  intended solely for the benefit and assistance of the small

20  business enterprise.

21         (5)  The small business enterprise must be registered

22  with the Commission on Small Business and Economic

23  Development.

24         (6)  The Commission on Small Business Development shall

25  adopt rules, monitor, and do all things necessary or

26  convenient to guide all state agencies and state universities

27  toward making expenditures for commodities, contractual

28  services, construction, and architecture and engineering

29  services to small business enterprises.

30

31

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  1         Section 6.  Paragraphs (b) and (e) of subsection (1)

  2  and paragraph (a) of subsection (4) of section 287.0943,

  3  Florida Statutes, 1998 Supplement, are amended to read:

  4         287.0943  Certification of minority business

  5  enterprises.--

  6         (1)

  7         (b)  The task force shall be regionally balanced and

  8  comprised of officials representing the department, counties,

  9  municipalities, school boards, special districts, and other

10  political subdivisions of the state who administer programs to

11  assist minority businesses in procurement or development in

12  government-sponsored programs. The following organizations may

13  appoint two members each of the task force who fit the

14  description above:

15         1.  The Florida League of Cities, Inc.

16         2.  The Florida Association of Counties.

17         3.  The Florida School Boards Association, Inc.

18         4.  The Association of Special Districts.

19         5.  The Florida Association of Minority Business

20  Enterprise Officials.

21         6.  The Florida Association of Government Purchasing

22  Officials.

23

24  In addition, the Small Minority Business and Economic

25  Development Advocacy and Assistance Office shall appoint seven

26  members consisting of three representatives of minority

27  business enterprises, two officials of the office, and two

28  at-large members to ensure regional, gender, racial, and

29  ethnic balance among the groups specified in s. 288.703(3).

30  The chairperson of the Legislative Committee on

31  Intergovernmental Relations or a designee shall be a member of

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  1  the task force, ex officio. A quorum shall consist of

  2  one-third of the current members, and the task force may take

  3  action by majority vote. Any vacancy may only be filled by the

  4  organization or agency originally authorized to appoint the

  5  position.

  6         (e)  In assessing the status of ownership and control,

  7  certification criteria shall, at a minimum:

  8         1.  Link ownership by a minority person, as defined in

  9  s. 288.703(3), or as dictated by the legal obligations of a

10  certifying organization, to day-to-day control and financial

11  risk by the qualifying minority owner, and to licensure of a

12  minority owner in any trade or profession that the minority

13  business enterprise will offer to the state when certified;

14  however, the minority licenseholder need not be the

15  controlling owner of the enterprise, but must hold an

16  ownership interest. Minority business enterprises presently

17  certified by the state will not be subject to the licensure

18  requirement until 5 years after the effective date of this

19  act.

20         2.  If present ownership was obtained by transfer,

21  require the minority person on whom eligibility is based to

22  have owned at least 51 percent of the applicant firm for a

23  minimum of 2 years, when any previous majority ownership

24  interest in the firm was by a nonminority who is or was a

25  relative, former employer, or current employer of the minority

26  person on whom eligibility is based. This requirement shall

27  not apply to minority persons who are otherwise eligible who

28  take a 51-percent-or-greater interest in a firm that requires

29  professional licensure to operate and who will be the

30  qualifying licenseholder for the firm when certified.  A

31  transfer made within a related immediate family group from a

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  1  nonminority person to a minority person in order to establish

  2  ownership by a minority person shall be deemed to have been

  3  made solely for purposes of satisfying certification criteria

  4  and shall render such ownership invalid for purposes of

  5  qualifying for such certification if the combined total net

  6  asset value of all members of such family group exceeds $1

  7  million. For purposes of this subparagraph, the term "related

  8  immediate family group" means one or more children under 16

  9  years of age and a parent of such children or the spouse of

10  such parent residing in the same house or living unit.

11         3.  Require that prospective certified minority

12  business enterprises be currently performing a useful business

13  function. A "useful business function" is defined as a

14  business function which results in the provision of materials,

15  supplies, equipment, or services to customers other than state

16  or local government. Acting as a conduit to transfer funds to

17  a nonminority business does not constitute a useful business

18  function unless it is done so in a normal industry practice. A

19  supplier that has a distributorship agreement, other forms of

20  industry agreements, or lines of credit and that demonstrates

21  a means of procuring and transporting goods, including catalog

22  sales and drop shipments, is considered to be providing a

23  useful business function. As used in this section, the term

24  "acting as a conduit" means, in part, not acting as a regular

25  dealer by making sales of material, goods, or supplies from

26  items bought, kept in stock, and regularly sold to the public

27  in the usual course of business. Brokers, manufacturer's

28  representatives, sales representatives, and nonstocking

29  distributors are considered as conduits that do not perform a

30  useful business function, unless normal industry practice

31  dictates.

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  1         (4)(a)  The executive administrator secretary of the

  2  Small Business and Economic Development Office Department of

  3  Labor and Employment Security shall monitor and implement

  4  execute the statewide reciprocal certification and interlocal

  5  agreement established under s. 287.09431 on behalf of the

  6  state. The office shall certify minority business enterprises

  7  in accordance with statewide reciprocal certification the

  8  agreement and, by affidavit, shall recertify such minority

  9  business enterprises not less than once every 2 years each

10  year.

11         Section 7.  Section 287.09431, Florida Statutes, is

12  amended to read:

13         (Substantial rewording of section.  See

14         s. 287.09431, F.S., for present text.)

15         287.09431  Statewide reciprocal certification of

16  business concerns for the status of minority business

17  enterprise.--The statewide reciprocal certification of

18  business concerns for the status of minority business

19  enterprise is hereby enacted and entered into with all

20  jurisdictions or organizations legally joining therein. The

21  executive administrator of the Small Business and Economic

22  Development Office may enter into flexible agreements with all

23  jurisdictions for the purpose of effectuating this section.

24  Therefore, additional eligibility criteria may be permissible

25  in order for local government jurisdictions and private

26  organizations to comply with local and federal laws,

27  especially those laws that are enacted to counter the findings

28  of disparity studies. The executive administrator of the Small

29  Business and Economic Development Office may negotiate the

30  terms of agreement with the local government jurisdictions and

31  private organizations to include as many participating

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  1  entities as feasible, whether or not they have minority

  2  business programs.

  3         Section 8.  Section 287.09451, Florida Statutes, 1998

  4  Supplement, is amended to read:

  5         287.09451  Commission on Small Business and Economic

  6  Development Minority Business Advocacy and Assistance Office;

  7  powers, duties, and functions.--

  8         (1)  The Legislature finds that there is evidence that

  9  minority business enterprises face extraordinary obstacles and

10  barriers in this state which impact their ability to compete

11  for contracts. The purpose and intent of the Legislature is to

12  provide these businesses with technical, managerial,

13  contracting, and financial assistance in order to make their

14  search for government contracts consistently fruitful. The

15  Legislature further finds that there is evidence of a

16  systematic pattern of past and continuing racial

17  discrimination against minority business enterprises and a

18  disparity in the availability and use of minority business

19  enterprises in the state procurement system. It is determined

20  to be a compelling state interest to rectify that

21  discrimination and disparity. Based upon statistical data

22  profiling discrimination, the Legislature has enacted this

23  race-conscious and gender-conscious remedial program to ensure

24  minority participation in the economic life of the state, in

25  state contracts for the purchase of commodities, contractual

26  services, architectural and engineering services, and in

27  construction contracts. The purpose and intent of this section

28  is to increase participation by minority business enterprises

29  in the state procurement system. This purpose will be

30  accomplished by encouraging the use of minority business

31

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  1  enterprises and the entry of new and diversified minority

  2  business enterprises into the marketplace.

  3         (2)  There is created the Commission on Small Business

  4  and Economic Development, the membership of which shall be the

  5  Governor, two persons appointed by the President of the

  6  Senate, and two persons appointed by the Speaker of the House

  7  of Representatives. The commission is assigned to the Office

  8  of Tourism, Trade, and Economic Development for administrative

  9  purposes and fiscal accountability. The Governor is the

10  chairperson of the commission, and may call a meeting of the

11  commission when the need arises. All actions taken by the

12  commission may be taken by approval of a simple majority.

13         (3)  An executive administrator to the commission shall

14  be appointed and may be removed by the Governor.

15         (4)  The executive administrator is responsible for all

16  administrative functions of the commission, including

17  budgeting, personnel, purchasing, and such additional matters

18  as are delegated by the commission.

19         (5)  The executive administrator shall employ, within

20  budgetary limitations, such staff as are necessary to perform

21  adequately the functions of the commission.

22         (6)  The executive administrator shall develop a budget

23  in accordance with chapter 216 and submit it to the Executive

24  Office of the Governor.

25         (7)  The commission shall:

26         (a)  Provide overall leadership and promote

27  coordination of economic and business development resources

28  for the benefit of minority business enterprises and of

29  distressed communities that are affected by the business.

30         (b)  Develop a comprehensive strategic plan that will

31  provide the maximum practical opportunity for economic growth

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  1  of black-owned businesses and other minority businesses in

  2  this state.

  3         (c)  Provide direction relating to economic and

  4  business development of minority business enterprises to

  5  regional and statewide planning entities and county,

  6  municipal, and special district minority business enterprise

  7  programs to help promote the redevelopment of distressed areas

  8  and minority business enterprises and minority and small

  9  business enterprise programs, where necessary, and to foster

10  strategic alliances among these entities so as to target

11  resources and achieve specific objectives in the economic and

12  business development of minority business enterprises.

13         (d)  Develop a clear statement of the mission, desired

14  outcomes and strategies for accomplishing the outcomes, and

15  performance measures to assess whether the outcomes are being

16  achieved for the state's small and minority business

17  enterprise programs. The goals are to:

18         1.  Increase the size and profitability of minority

19  businesses served by the programs.

20         2.  Increase the economic self-sufficiency and

21  competitiveness of minority businesses, as measured by their

22  ability to independently obtain necessary financial capital

23  and surety bonding, and to successfully compete for larger

24  government contracts, in terms of gross contract amount,

25  outside a served or sheltered market.

26         3.  Significantly reduce the disparities evidenced by a

27  statistical analysis of the availability and use of minority

28  businesses for state procurement.

29         (e)  Develop an analysis of the existing strategies of

30  the state's minority business enterprise programs to determine

31  whether the strategies are cost-effective or whether

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  1  alternative strategies should be developed to more

  2  cost-effectively achieve the desired outcomes.

  3         (f)  Submit the information required to be developed to

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

  5  the House of Representatives by February 1 of each year. of a

  6  systematic  pattern of past and continuing racial

  7  discrimination against minority business enterprises and a

  8  disparity in the availability and use of minority business

  9  enterprises in the state procurement system. It is determined

10  to be a compelling state interest to rectify such

11  discrimination and disparity. Based upon statistical data

12  profiling this discrimination, the Legislature has enacted

13  race-conscious and gender-conscious remedial programs to

14  ensure minority participation in the economic life of the

15  state, in state contracts for the purchase of commodities and

16  services, and in construction contracts. The purpose and

17  intent of this section is to increase participation by

18  minority business enterprises accomplished by encouraging the

19  use of minority business enterprises and the entry of new and

20  diversified minority business enterprises into the

21  marketplace.

22         (2)  The Minority Business Advocacy and Assistance

23  Office is established within the Department of Labor and

24  Employment Security to assist minority business enterprises in

25  becoming suppliers of commodities, services, and construction

26  to state government.

27         (3)  The secretary shall appoint an executive director

28  for the Minority Business Advocacy and Assistance Office, who

29  shall serve at the pleasure of the secretary.

30         (8)(4)  The Small Minority and Economic Development

31  Business Advocacy and Assistance Office is established within

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  1  the commission to assist small and minority businesses in

  2  becoming suppliers of commodities, services, and construction

  3  to state governments. The Small Business and Economic

  4  Development Office shall have the following powers, duties,

  5  and functions:

  6         (a)  To adopt rules to determine what constitutes a

  7  "good faith effort" for purposes of state agency compliance

  8  with the minority business enterprise procurement goals set

  9  forth in s. 287.042. Factors which shall be considered by the

10  Small Minority Business and Economic Development Enterprise

11  Assistance Office in determining good faith effort shall

12  include, but not be limited to:

13         1.  Whether the agency scheduled presolicitation or

14  prebid meetings for the purpose of informing minority business

15  enterprises of contracting and subcontracting opportunities.

16         2.  Whether the contractor advertised in general

17  circulation, trade association, or minority-focus media

18  concerning the subcontracting opportunities.

19         3.  Whether the agency effectively used services and

20  resources of available minority community organizations;

21  minority contractors' groups; local, state, and federal

22  minority business assistance offices; and other organizations

23  that provide assistance in the recruitment and placement of

24  minority business enterprises or minority persons.

25         4.  Whether the agency provided written notice to a

26  reasonable number of minority business enterprises that their

27  interest in contracting with the agency was being solicited in

28  sufficient time to allow the minority business enterprises to

29  participate effectively.

30         (b)  To adopt rules to determine what constitutes a

31  "good faith effort" for purposes of contractor compliance with

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  1  contractual requirements relating to the use of services or

  2  commodities of a minority business enterprise under s.

  3  287.094(2). Factors which shall be considered by the Small

  4  Minority Business and Economic Development Advocacy and

  5  Assistance Office in determining whether a contractor has made

  6  good faith efforts shall include, but not be limited to:

  7         1.  Whether the contractor attended any presolicitation

  8  or prebid meetings that were scheduled by the agency to inform

  9  minority business enterprises of contracting and

10  subcontracting opportunities.

11         2.  Whether the contractor advertised in general

12  circulation, trade association, or minority-focus media

13  concerning the subcontracting opportunities.

14         3.  Whether the contractor provided written notice to a

15  reasonable number of specific minority business enterprises

16  that their interest in the contract was being solicited in

17  sufficient time to allow the minority business enterprises to

18  participate effectively.

19         4.  Whether the contractor followed up initial

20  solicitations of interest by contacting minority business

21  enterprises or minority persons to determine with certainty

22  whether the minority business enterprises or minority persons

23  were interested.

24         5.  Whether the contractor selected portions of the

25  work to be performed by minority business enterprises in order

26  to increase the likelihood of meeting the minority business

27  enterprise procurement goals, including, where appropriate,

28  breaking down contracts into economically feasible units to

29  facilitate minority business enterprise participation.

30         6.  Whether the contractor provided interested minority

31  business enterprises or minority persons with adequate

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  1  information about the plans, specifications, and requirements

  2  of the contract or the availability of jobs.

  3         7.  Whether the contractor negotiated in good faith

  4  with interested minority business enterprises or minority

  5  persons, not rejecting minority business enterprises or

  6  minority persons as unqualified without sound reasons based on

  7  a thorough investigation of their capabilities.

  8         8.  Whether the contractor effectively used the

  9  services of available minority community organizations;

10  minority contractors' groups; local, state, and federal

11  minority business assistance offices; and other organizations

12  that provide assistance in the recruitment and placement of

13  minority business enterprises or minority persons.

14         (c)  To adopt rules and do all things necessary or

15  convenient to guide all state agencies toward making

16  expenditures for commodities, contractual services,

17  construction, and architectural and engineering services with

18  certified minority business enterprises in accordance with the

19  minority business enterprise procurement goals set forth in s.

20  287.042.

21         (d)  To monitor the degree to which agencies procure

22  services, commodities, and construction from minority business

23  enterprises in conjunction with the Department of Banking and

24  Finance as specified in s. 17.11.

25         (e)  To receive and disseminate information relative to

26  procurement opportunities, availability of minority business

27  enterprises, and technical assistance.

28         (f)  To advise agencies on methods and techniques for

29  achieving procurement objectives.

30

31

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  1         (g)  To provide a central minority business enterprise

  2  certification process which includes independent verification

  3  of status as a minority business enterprise.

  4         (h)  To develop procedures to investigate complaints

  5  against minority business enterprises or contractors alleged

  6  to violate any provision related to this section or s.

  7  287.0943, that may include visits to worksites or business

  8  premises, and to refer all information on businesses suspected

  9  of misrepresenting minority status to the Commission on Small

10  Business and Economic Development Department of Labor and

11  Employment Security for investigation. When an investigation

12  is completed and there is reason to believe that a violation

13  has occurred, the commission Department of Labor and

14  Employment Security shall refer the matter to the office of

15  the Attorney General, Department of Legal Affairs, for

16  prosecution.

17         (i)  To maintain a directory of all minority business

18  enterprises which have been certified and provide this

19  information to any agency or business requesting it.

20         (j)  To encourage all firms which do more than $1

21  million in business with the state within a 12-month period to

22  develop, implement, and submit to this office a minority

23  business development plan.

24         (k)  To communicate on a monthly basis with the

25  Commission on Small Business and Economic Development Small

26  and Minority Business Advisory Council to keep the commission

27  council informed on issues relating to minority enterprise

28  procurement.

29         (l)  To serve as an advocate for minority business

30  enterprises, and coordinate with the small and minority

31

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  1  business ombudsman, as defined in s. 288.703, which duties

  2  shall include:

  3         1.  Ensuring that agencies supported by state funding

  4  effectively target the delivery of services and resources, as

  5  related to minority business enterprises.

  6         2.  Establishing standards within each industry with

  7  which the state government contracts on how agencies and

  8  contractors may provide the maximum practicable opportunity

  9  for minority business enterprises.

10         3.  Assisting agencies and contractors by providing

11  outreach to minority businesses, by specifying and monitoring

12  technical and managerial competence for minority business

13  enterprises, and by consulting in planning of agency

14  procurement to determine how best to provide opportunities for

15  minority business enterprises.

16         4.  Integrating technical and managerial assistance for

17  minority business enterprises with government contracting

18  opportunities.

19         (m)  To make and execute contracts and other

20  instruments necessary for the exercise of its powers and

21  functions, and provide and pay for advisory services and

22  technical assistance that may be necessary to carry out the

23  purposes of this section.

24         (n)  To request or accept any grant, including a grant

25  that requires a state match, any payment, gift of funds, or

26  property made by the state, by the United States or any

27  department or agency thereof, or by any individual firm,

28  political subdivision, corporation, municipality, county, or

29  organization for any purpose outlined in chapter 287. All such

30  funds must be deposited into the budget entity of the office,

31  and may be expended above the amount appropriated by the

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  1  Legislature and in accordance with the terms and conditions of

  2  any such grant, payment, or gift, or in the pursuit of the

  3  administration of the office or in support of the programs and

  4  promotional activities recommended to the commission. If the

  5  Small Business and Economic Development Office is awarded a

  6  grant or private contribution that requires a match, the

  7  office shall receive a matching appropriation equal to 80

  8  percent of the grant or private contribution.

  9         (o)  To adopt rules necessary to ensure agency and

10  contractor compliance with this section and the Florida Small

11  and Minority Business Assistance Act of 1985.

12         (p)(m)  To certify minority business enterprises, as

13  defined in s. 288.703, and as specified in ss. 287.0943 and

14  287.09431, and shall recertify such minority businesses not

15  less than once a year. Minority business enterprises must be

16  recertified biannually annually by affidavit.

17         (q)(n)1.  To develop procedures to be used by an agency

18  in identifying commodities, contractual services,

19  architectural and engineering services, and construction

20  contracts, except those architectural, engineering,

21  construction, or other related services or contracts subject

22  to the provisions of chapter 339, that could be provided by

23  minority business enterprises. Minority business enterprise

24  goals must be based upon the total state spending with any

25  private or nonprofit entity that is contracting with the state

26  during the current fiscal year; except for the state

27  university construction program, which must be based upon

28  public education capital outlay projections for the subsequent

29  fiscal year and reported to the Legislature under s. 216.023.

30  Each agency is encouraged to spend 12-21 21 percent on of the

31  moneys actually expended for construction contracts, 17-25 25

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  1  percent on of the moneys actually expended for architectural

  2  and engineering contracts, 5-24 24 percent on of the moneys

  3  actually expended for commodities, and 5-25 50.5 percent on of

  4  the moneys actually expended for contractual services during

  5  the previous fiscal year, except for the state university

  6  construction program which shall be based upon public

  7  education capital outlay projections for the subsequent fiscal

  8  year, and reported to the Legislature pursuant to s. 216.023,

  9  for the purpose of entering into contracts with certified

10  minority business enterprises as defined in s. 288.703(2), or

11  approved joint ventures or mentor programs for the purpose of

12  entering into contracts. However, in the event of budget

13  reductions pursuant to s. 216.221, the base amounts may be

14  adjusted to reflect such reductions. The overall spending goal

15  for each industry category shall be subdivided as follows:

16         a.  For construction contracts: 2.4-4.3 4 percent for

17  black Americans, 2.5-6 6 percent for Hispanic-Americans, 0.4

18  percent for Asian-Americans, 0.3 for Native Americans, and

19  6.4-11 11 percent for American women.

20         b.  For architectural and engineering contracts: 2.6

21  percent for black Americans, 4.5-9 9 percent for

22  Hispanic-Americans, 1 percent for Asian-Americans, 0.1 percent

23  for Native Americans, and 8.8-15 15 percent for American

24  women.

25         c.  For commodities: 1.5-4 2 percent for black

26  Americans, 1.5-4 4 percent for Hispanic-Americans, 0.2-0.5 0.5

27  percent for Asian-Americans, 0.2-0.5 0.5 percent for Native

28  Americans, and 1.6-15 17 percent for American women.

29         d.  For contractual services: 0.4-7 6 percent for black

30  Americans, 0.3-7 7 percent for Hispanic-Americans, 2.3 1

31

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  1  percent for Asian-Americans, 0.2-0.5 0.5 percent for Native

  2  Americans, and 1.8-8.2 36 percent for American women.

  3         2.  To develop procedures to evaluate the performance

  4  of state agency heads and purchasing personnel in meeting or

  5  exceeding the established percentage goals. Additionally, to

  6  develop procedures to establish dollar goals, by procurement

  7  category, for each agency which range in value from no less

  8  than 98 percent of the overall spending goal and no more than

  9  105 percent above the overall spending goal as applied to each

10  agency's total spending with any private or nonprofit entity

11  that is contracting or doing business with the state during

12  the current fiscal year; except for the state university

13  construction program, which must be based upon public

14  education capital outlay projections for the subsequent fiscal

15  year and reported to the Legislature under s. 216.023.

16         3.2.  For the purposes of commodities contracts for the

17  purchase of equipment to be used in the construction and

18  maintenance of state transportation facilities involving the

19  Department of Transportation, "minority business enterprise"

20  has the same meaning as provided in s. 288.703. "Minority

21  person" has the same meaning as in s. 288.703(3). In order to

22  ensure that the goals established under this paragraph for

23  contracting with certified minority business enterprises are

24  met, the department, with the assistance of the Small Minority

25  Business and Economic Development Advocacy and Assistance

26  Office, shall make recommendations to the Legislature on

27  revisions to the goals, based on an updated statistical

28  analysis, at least once every 5 years. Such recommendations

29  shall be based on statistical data indicating the availability

30  of and disparity in the use of minority businesses contracting

31  with the state. The results of the second first updated

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  1  disparity study must be presented to the Legislature no later

  2  than December 1, 2002, to determine the effectiveness in

  3  achieving stated goals and to revise or modify program

  4  components for the full achievement of the goals. In those

  5  specific areas, including procurement category, ethnic group,

  6  geographic region, or agency, when the Legislature determines

  7  that there is no disparity in the participation of minority

  8  business enterprises based on the disparity analysis, the

  9  minority business program must be discontinued, in those areas

10  only, within 1 year after the Legislature's determination. The

11  Governor shall designate a Minority Business Ombudsman to

12  monitor progress, receive complaints, and report progress to

13  the commission, by November 1 of each year, in those areas in

14  which the minority business enterprise programs are phased out

15  or repealed to determine whether disparities or discrimination

16  is a recurring problem. The minority business enterprise

17  program may be reestablished in phased-out programs, when

18  disparities in minority business utilization reoccurs. This

19  section expires July 1, 2006; however, the Minority Business

20  Ombudsman shall continue to monitor, receive complaints, make

21  recommendations, and report findings to the Governor. 1996

22         4.3.  In determining the base amounts for assessing

23  compliance with this paragraph, the Small Minority Business

24  and Economic Development Advocacy and Assistance Office may

25  develop, by rule, guidelines for all agencies to use in

26  establishing such base amounts. These rules must include, but

27  are not limited to, guidelines for calculation of base

28  amounts, a deadline for the agencies to submit base amounts, a

29  deadline for approval of the base amounts by the Small

30  Minority Business and Economic Development Advocacy and

31  Assistance Office, and procedures for adjusting the base

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  1  amounts as a result of budget reductions made pursuant to s.

  2  216.221.

  3         5.4.  To determine guidelines for the use of price

  4  preferences, weighted preference formulas, individual project

  5  goals, or other preferences, as appropriate to the particular

  6  industry or trade, to increase the participation of minority

  7  businesses in state contracting. These guidelines shall

  8  include consideration of:

  9         a.  Size and complexity of the project.

10         b.  The concentration of transactions with minority

11  business enterprises for the commodity or contractual services

12  in question in prior agency contracting.

13         c.  The specificity and definition of work allocated to

14  participating minority business enterprises.

15         d.  The capacity of participating minority business

16  enterprises to complete the tasks identified in the project.

17         e.  The available pool of minority business enterprises

18  as prime contractors, either alone or as partners in an

19  approved joint venture that serves as the prime contractor.

20         (f)  The geographical location of certified minority

21  business enterprises where location is a relevant factor.

22         6.5.  To establish programs, adopt rules, establish

23  guidelines, and develop annual plans, where applicable, to be

24  followed by the participants of the mentor program and

25  determine guidelines for use of joint ventures to meet

26  minority business enterprises spending goals. For purposes of

27  this section, "joint venture" means any association of two or

28  more business concerns to carry out a single business

29  enterprise for profit, for which purpose they combine their

30  property, capital, efforts, skills, or and knowledge. The

31  guidelines shall allow transactions with joint ventures to be

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  1  eligible for credit against the minority business enterprise

  2  goals of an agency when the contracting joint venture

  3  demonstrates that at least one partner to the joint venture is

  4  a certified minority business enterprise as defined in s.

  5  288.703, and that such partner is responsible for a clearly

  6  defined portion of the work to be performed, and can

  7  demonstrate a plan to enhance the certified minority business

  8  enterprises' profitability, management skills, financial

  9  standing, and marketplace position shares in the ownership,

10  control, management, responsibilities, risks, and profits of

11  the joint venture. Such demonstration shall be by verifiable

12  documents and sworn statements and may be reviewed by the

13  Small Minority Business and Economic Development Advocacy and

14  Assistance Office at or before the time a contract bid is

15  submitted. An agency may count toward its minority business

16  enterprise goals a portion of the total dollar amount of a

17  contract equal to the percentage of the ownership and control

18  held by the qualifying certified minority business partners in

19  the business relationship contracting joint venture, so long

20  as it the joint venture meets the guidelines adopted by the

21  office.

22         (r)  Mentor programs may be established for businesses

23  to qualify to bid on state projects.

24         1.  A mentor must possess all applicable state and

25  local licenses related to conducting the mentor's business. A

26  mentor shall provide to a certified minority business

27  enterprise any financial, technical, ethical, management, and

28  practical training and guidance relating to the conduct of the

29  mentor's business, which shall be outlined as written goals

30  and submitted for review to the Small Business and Economic

31  Development Office.

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  1         2.  Mentor requirements apply only to businesses that

  2  apply for the mentor program, compete for state contracts, and

  3  want certified minority business enterprise participation

  4  credit on a state contract. The protege of the mentor

  5  relationship, must be a certified minority business

  6  enterprise.

  7         3.  Mentors who mentor certified minority business

  8  enterprises or small business enterprise located in an area

  9  targeted by the Governor's Front Porch Florida Initiative may

10  receive credit for meeting minority business enterprise

11  contracting goals.

12         4.  A protege under the program shall participate by

13  being available to benefit from information and expertise

14  offered by the mentor. To qualify as a protege, a business

15  must be a certified minority business enterprise.

16         5.  The mentor shall submit the written mentor plan to

17  the Small Business and Economic Development Office, for

18  approval, if the mentor desires to submit the mentor-protege

19  relationship for minority business enterprise participation

20  credit.

21         (s)(o)1.  To establish a system to record and measure

22  the use of certified minority business enterprises in state

23  contracting. This system shall maintain information and

24  statistics on certified minority business enterprise

25  participation, awards, dollar volume of expenditures and

26  agency goals, and other appropriate types of information to

27  analyze progress in the access of certified minority business

28  enterprises to state contracts and to monitor agency

29  compliance with this section. Such reporting must include, but

30  is not limited to, the identification of all subcontracts in

31  state contracting, including state negotiated agreement price

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  1  schedule contracts and state term contracts, by dollar amount

  2  and by number of subcontracts and the identification of the

  3  utilization of certified minority business enterprises as

  4  prime contractors and subcontractors by dollar amounts of

  5  contracts and subcontracts, number of contracts and

  6  subcontracts, minority status, industry, and any conditions or

  7  circumstances that significantly affected the performance of

  8  subcontractors. Agencies shall report their compliance with

  9  the requirements of this reporting system at least annually

10  and at the request of the office. All agencies shall cooperate

11  with the office in establishing this reporting system. Except

12  in construction contracting, all agencies shall review

13  contracts costing in excess of CATEGORY FOUR as defined in s.

14  287.017 to determine if such contracts could be divided into

15  smaller contracts to be separately bid and awarded, and shall,

16  when economical, offer such smaller contracts to encourage

17  minority participation.

18         2.  To report agency compliance with the provisions of

19  subparagraph 1. for the preceding fiscal year to the

20  commission Governor and Cabinet, the President of the Senate,

21  the Speaker of the House of Representatives, and the secretary

22  of the Department of Labor and Employment Security on or

23  before February 1 of each year. The report must contain, at a

24  minimum, the following:

25         a.  Total expenditures of each agency by industry.

26         b.  The dollar amount and percentage of contracts

27  awarded to certified minority business enterprises by each

28  state agency.

29         c.  The dollar amount and percentage of contracts

30  awarded indirectly to certified minority business enterprises

31  as subcontractors by each state agency.

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  1         d.  The total dollar amount and percentage of contracts

  2  awarded to certified minority business enterprises, whether

  3  directly or indirectly, as subcontractors.

  4         e.  A statement and assessment of good faith efforts

  5  taken by each state agency.

  6         f.  A status report of agency compliance with

  7  subsection (6), as determined by the Small Minority Business

  8  and Economic Development Enterprise Office.

  9         (9)(5)(a)  Each agency shall, at the time the

10  specifications or designs are developed or contract sizing is

11  determined for any proposed procurement costing in excess of

12  CATEGORY FOUR, as defined in s. 287.017, forward a notice to

13  the Small Minority Business and Economic Development Advocacy

14  and Assistance Office of the proposed procurement and any

15  determination on the designs of specifications of the proposed

16  procurement that impose requirements on prospective vendors,

17  no later than 30 days prior to the issuance of a solicitation,

18  except that this provision shall not apply to emergency

19  acquisitions. The 30-day notice period shall not toll the time

20  for any other procedural requirements.

21         (b)  If the Small Minority Business and Economic

22  Development Advocacy and Assistance Office determines that the

23  proposed procurement will not likely allow opportunities for

24  minority business enterprises, the office may, within 20 days

25  after it receives the information specified in paragraph (a),

26  propose the implementation of minority business enterprise

27  utilization provisions or submit alternative procurement

28  methods that would significantly increase minority business

29  enterprise contracting opportunities.

30         (c)  Whenever the agency and the Small Minority

31  Business and Economic Development Advocacy and Assistance

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  1  Office disagree, the matter shall be submitted for

  2  determination to the head of the agency or the senior-level

  3  official designated pursuant to this section as liaison for

  4  minority business enterprise issues.

  5         (d)  Should the proposed procurement proceed to

  6  competitive bidding, the office is hereby granted standing to

  7  protest, pursuant to this section, in a timely manner, any

  8  contract award in competitive bidding for contractual services

  9  and construction contracts that fail to include minority

10  business enterprise participation, if any responding bidder

11  has demonstrated the ability to achieve any level of

12  participation, or, any contract award for commodities where, a

13  reasonable and economical opportunity to reserve a contract,

14  statewide or district level, for minority participation was

15  not executed or, an agency failed to adopt an applicable

16  preference for minority participation. The bond requirement

17  shall be waived for the office purposes of this subsection.

18         (e)  An agency may presume that a bidder offering no

19  minority participation has not made a good faith effort when

20  other bidders offer minority participation of firms listed as

21  relevant to the agency's purchasing needs in the pertinent

22  locality or statewide to complete the project.

23         (f)  Paragraph (a) will not apply when the Small

24  Minority Business and Economic Development Advocacy and

25  Assistance Office determines that an agency has established a

26  work plan to allow advance consultation and planning with

27  minority business enterprises and where such plan clearly

28  demonstrates:

29         1.  A high level of advance planning by the agency with

30  minority business enterprises.

31

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  1         2.  A high level of accessibility, knowledge, and

  2  experience by minority business enterprises in the agency's

  3  contract decisionmaking process.

  4         3.  A high quality of agency monitoring and enforcement

  5  of internal implementation of minority business utilization

  6  provisions.

  7         4.  A high quality of agency monitoring and enforcement

  8  of contractor utilization of minority business enterprises,

  9  especially tracking subcontractor data, and ensuring the

10  integrity of subcontractor reporting.

11         5.  A high quality of agency outreach, agency

12  networking of major vendors with minority vendors, and

13  innovation in techniques to improve utilization of minority

14  business enterprises.

15         6.  Substantial commitment, sensitivity, and proactive

16  attitude by the agency head and among the agency minority

17  business staff.

18         (6)  Each state agency shall coordinate its minority

19  business enterprise procurement activities with the Small

20  Minority Business and Economic Development Advocacy and

21  Assistance Office. At a minimum, each agency shall:

22         (a)  Adopt a minority business enterprise utilization

23  plan for review and approval by the Small Minority Business

24  and Economic Development Advocacy and Assistance Office which

25  should require meaningful and useful methods to attain the

26  legislative intent in assisting minority business enterprises.

27         (b)  Designate a senior-level employee in the agency as

28  a minority enterprise assistance officer, responsible for

29  overseeing the agency's minority business utilization

30  activities, and who is not also charged with purchasing

31  responsibility. A senior-level agency employee and agency

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  1  purchasing officials shall be accountable to the agency head

  2  for the agency's minority business utilization performance.

  3  The Small Minority Business and Economic Development Advocacy

  4  and Assistance Office shall advise each agency on compliance

  5  performance.

  6         (c)  If an agency deviates significantly from its

  7  utilization plan in 2 consecutive or 3 out of 5 total fiscal

  8  years, the Small Minority Business and Economic Development

  9  Advocacy and Assistance Office may review any and all

10  solicitations and contract awards of the agency as deemed

11  necessary until such time as the agency meets its utilization

12  plan.

13         Section 9.  Section 287.09452, Florida Statutes, is

14  created to read:

15         287.09452  Small and Minority Business Management and

16  Technical Assistance Program.--

17         (1)  It is the policy of the state to meaningfully

18  assist small business enterprises and certified minority

19  business enterprises by developing skills through a program of

20  construction and business-management training, as well as by

21  providing contracting opportunities, partnering for

22  mentor-proteges, joint ventures, and financial assistance in

23  the form of bond guarantees to primarily remedy the effects of

24  past economic disparity and historical discrimination.

25         (2)  Participation in the program is limited to those

26  businesses that are certified by the Small Business and

27  Economic Development Office as a minority business enterprise

28  or small business enterprise. The programs are to consist of

29  classroom instruction and on-the-job instruction. To the

30  extent feasible, the registration fee may be set to cover the

31

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  1  cost of instruction and overhead. No salary may be paid to any

  2  participant.

  3         (a)  This program may be conducted by contract or

  4  otherwise.

  5         (b)  Classroom instruction shall consist of, but is not

  6  limited to, project planning methods for identifying

  7  personnel, equipment, and financial resource needs;

  8  bookkeeping; marketing; bidding and bonding requirements;

  9  state and federal tax requirements; and strategies for

10  obtaining loans, bonding, and joint venture and mentoring

11  agreements and alliances.

12         (c)  On-the-job instruction shall consist of, but is

13  not limited to, setting up the job site, cash flow method,

14  accounting, project scheduling, quantity takeoffs, estimating,

15  reading plans and specifications, procedures concerning

16  billing and payments, quality assessment and control methods,

17  and bid and proposal preparation methods.

18         (d)  The Small Business and Economic Development Office

19  shall develop, under contract with the State University

20  System, the community college system, a school district on

21  behalf of its vocational-technical center, or a private

22  consulting firm, a curriculum for instruction in the courses

23  that will lead to a certification of proficiency in business

24  management for certified minority businesses and small

25  businesses.

26         (e)  The Small Business and Economic Development Office

27  may expend funds on a bond guarantee program for certified

28  minority business enterprises and small business enterprises

29  that have demonstrated satisfactory project performance as

30  prescribed by the guidelines. The state will guarantee up to

31  90 percent of any bond amount that is $250,000 or less and 80

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  1  percent of any bond amount that is greater than $250,000, if

  2  the bond is provided by an approved surety.

  3         (3)  The Small Business and Economic Development Office

  4  may accept financial contributions into the Small and Minority

  5  Business Trust Fund, if created by law, and enter into

  6  memorandums of understanding with local governmental entities

  7  and political subdivisions within the state, for the purpose

  8  of allowing minority business enterprises and small business

  9  enterprises that are certified with these entities to

10  participate in the construction and business management

11  training, financial assistance, and bonding assistance

12  program, as provided for in this section.

13         (4)  Annually, the Small Business and Economic

14  Development Office shall report the progress of this program

15  to the Commission on Small Business and Economic Development.

16  The report must include, as a minimum, the number of users of

17  the bond guarantee plan, along with the number of defaults and

18  dollar loss to the state; the number of students participating

19  in the management and technical assistance program, listed by

20  location; the number of program participants, categorized by

21  ethnicity; the number of program participants that received

22  state contracts; and the cost of the program, categorized by

23  cost of administration, the cost of instruction on-the-job and

24  in classrooms, and the cost of supplies.

25         Section 10.  Section 287.0946, Florida Statutes, is

26  created to read:

27         287.0946  Small business and minority business

28  enterprise linked-deposit program.--

29         (1)  The Commission on Small Business and Economic

30  Development may create a small and minority business

31  enterprise linked-deposit program to encourage financial

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  1  institutions to increase the volume of loans made to small

  2  business enterprises and minority business enterprises to

  3  encourage the development of small and minority businesses.

  4         (2)  As used in this section, the term:

  5         (a)  "Commission" means the Commission on Small

  6  Business and Economic Development.

  7         (b)  "Eligible borrower" means a minority business

  8  enterprise that is certified by the statewide reciprocal

  9  certification process or a small business enterprise certified

10  by the Small Business and Economic Development Office under

11  ss. 287.0942 and 287.088.

12         (c)  "Treasurer" means the Insurance Commissioner and

13  Treasurer.

14         (3)  Notwithstanding the provisions of s. 18.10, the

15  Treasurer shall designate, for the duration of the small and

16  minority business enterprise linked-deposit program, $15

17  million of the state's short-term treasury deposits for

18  deposit in participating financial institutions, except that

19  the Treasurer may not deposit more than $2 million in any one

20  financial institution participating in the small and minority

21  business linked-deposit program.

22         (4)  Participating financial institutions must be

23  qualified public depositories under chapter 280 and must be

24  selected via the bid process employed by the Treasurer in the

25  competitive selection program for certificates of deposit. A

26  bid less than 200 basis points below the prevailing rate for

27  United States Treasury securities with a maturity matching the

28  maturity of the deposit may not be accepted. At any one time,

29  not more than $15 million dollars may be placed in the small

30  and minority business enterprise linked-deposit program under

31  this section.

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  1         (5)  Participating financial institutions must provide

  2  a 100 percent match of any state treasury funds that are

  3  deposited within the financial institution as a result of

  4  participating in the small and minority business enterprise

  5  linked-deposit program. The participating financial

  6  institution's share of matching funds shall be used to provide

  7  loans to eligible borrowers for working capital, contracts,

  8  purchases of supplies or equipment, and the lease of the

  9  capital assets, including land, buildings or equipment. The

10  maximum amount of a loan provided under the minority business

11  linked-deposit program is $250,000.

12         (6)  At the recommendation of the Small Business and

13  Economic Development Office, the commission shall order the

14  removal and competitive rebidding of all program deposits at a

15  participating financial institution if a review of the

16  participating financial institution's record under the program

17  demonstrates no improvements relative to the financial

18  institution's preparticipation levels of lending to small and

19  minority business enterprises.

20         (7)  The commission shall order the removal and

21  competitive rebidding of all program deposits at a

22  participating institution, if the participating financial

23  institution ceases to be a qualified public depository under

24  chapter 280.

25         (8)  The Small Business and Economic Development

26  Office, with assistance from the Department of Banking and

27  Finance, shall compile funding data and provide an annual

28  report to the commission, on March 1 of each year, which

29  contains:

30         (a)  The name of the participating financial

31  institutions and the number and amount of loans made to small

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  1  and minority businesses under the small and minority business

  2  enterprise linked-deposit program during the previous calendar

  3  year.

  4         (b)  The average interest rate for small and minority

  5  business loans made by each participating financial

  6  institution under the program during the previous calendar

  7  year.

  8         (c)  The number of completed small and minority

  9  business loan applications that were denied or disapproved

10  during the previous calendar year by each financial

11  institution participating under the program.

12         (d)  Recommendations for continuation, expansion,

13  improvement, or expiration of the minority business

14  linked-deposit program in its annual report to the

15  Legislature.

16         (9)  This section expires June 30, 2006, and on that

17  date the designated short-term treasury deposits shall be

18  returned to the Treasurer.

19         Section 11.  Subsections (6) and (7) of section

20  290.0075, Florida Statutes, are amended to read:

21         290.0075  Enterprise zone linked deposit program.--

22         (6)  The Department of Banking and Finance shall

23  provide an annual report to the Governor, the Speaker of the

24  House of Representatives, the President of the Senate, and the

25  Office of Tourism, Trade, and Economic Development prior to

26  March February 1 of each year which contains:

27         (a)  The number and amount of loans made to small

28  businesses under this program during the previous calendar

29  year.

30

31

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  1         (b)  The average interest rate for small business loans

  2  made by each selected financial institution under this program

  3  during the previous calendar year.

  4         (c)  The number of completed small business loan

  5  applications that were denied or disapproved during the

  6  previous calendar year by each selected financial institution

  7  under this program.

  8         (d)  Recommendations concerning the continuation,

  9  expansion, improvement, or termination of this program.

10         (7)  This section expires July 1, 2006 shall stand

11  repealed on June 30, 2000, and on that date upon such repeal,

12  the designated short-term treasury deposits shall be returned

13  to the Treasurer.

14         Section 12.  Subsection (2) of section 17.11, Florida

15  Statutes, is amended to read:

16         17.11  To report disbursements made.--

17         (2)  The Comptroller shall also cause to have reported

18  from the state automated management accounting subsystem no

19  less than quarterly the disbursements which agencies made to

20  small businesses, as defined in the Florida Small and Minority

21  Business Assistance Act of 1985; to certified minority

22  business enterprises in the aggregate; and to certified

23  minority business enterprises broken down into categories of

24  minority persons, as well as gender and nationality subgroups.

25  This information shall be made available to the agencies, the

26  Small Minority Business and Economic Development Advocacy and

27  Assistance Office, the Governor, the President of the Senate,

28  and the Speaker of the House of Representatives. Each agency

29  shall be responsible for the accuracy of information entered

30  into the state automated management accounting subsystem for

31  use in this reporting.

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  1         Section 13.  Subsections (1) and (2) of section

  2  255.102, Florida Statutes, 1998 Supplement, are amended to

  3  read:

  4         255.102  Contractor utilization of minority business

  5  enterprises.--

  6         (1)  Agencies shall consider the use of price

  7  preferences, weighted preference formulas, or other

  8  preferences for construction contracts, as determined

  9  appropriate by the Small Minority Business and Economic

10  Development Advocacy and Assistance Office in collaboration

11  with the Department of Management Services to increase

12  minority participation.

13         (2)  The Small Minority Business and Economic

14  Development Advocacy and Assistance Office, in collaboration

15  with the Department of Management Services and the State

16  University System, shall adopt rules to determine what is a

17  "good faith effort" for purposes of contractor compliance with

18  minority participation goals established for competitively

19  awarded building and construction projects. Pro forma efforts

20  shall not be considered good faith. Factors which shall be

21  considered by the state agency in determining whether a

22  contractor has made good faith efforts shall include, but not

23  be limited to:

24         (a)  Whether the contractor attended any

25  presolicitation or prebid meetings that were scheduled by the

26  agency to inform minority business enterprises of contracting

27  and subcontracting opportunities.

28         (b)  Whether the contractor advertised in general

29  circulation, trade association, or minority-focus media

30  concerning the subcontracting opportunities.

31

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  1         (c)  Whether the contractor provided written notice to

  2  all relevant subcontractors listed on the minority vendor list

  3  for that locality and statewide as provided by the agency as

  4  of the date of issuance of the invitation to bid, that their

  5  interest in the contract was being solicited in sufficient

  6  time to allow the minority business enterprises to participate

  7  effectively.

  8         (d)  Whether the contractor followed up initial

  9  solicitations of interest by contacting minority business

10  enterprises, the Small Minority Business and Economic

11  Development Advocacy and Assistance Office, or minority

12  persons who responded and provided detailed information about

13  prebid meetings, access to plans, specifications, contractor's

14  project manager, subcontractor bonding, if any, payment

15  schedule, bid addenda, and other assistance provided by the

16  contractor to enhance minority business enterprise

17  participation.

18         (e)  Whether the contractor selected portions of the

19  work to be performed by minority business enterprises in order

20  to increase the likelihood of meeting the minority business

21  enterprise procurement goals, including, where appropriate,

22  breaking down contracts into economically feasible units to

23  facilitate minority business enterprise participation under

24  reasonable and economical conditions of performance.

25         (f)  Whether the contractor provided the Small Minority

26  Business and Economic Development Advocacy and Assistance

27  Office as well as interested minority business enterprises or

28  minority persons with adequate information about the plans,

29  specifications, and requirements of the contract or the

30  availability of jobs at a time no later than when such

31  information was provided to other subcontractors.

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  1         (g)  Whether the contractor negotiated in good faith

  2  with interested minority business enterprises or minority

  3  persons, not rejecting minority business enterprises or

  4  minority persons as unqualified without sound reasons based on

  5  a thorough investigation of their capabilities or imposing

  6  implausible conditions of performance on the contract.

  7         (h)  Whether the contractor diligently seeks to replace

  8  a minority business enterprise subcontractor that is unable to

  9  perform successfully with another minority business

10  enterprise.

11         (i)  Whether the contractor effectively used the

12  services of available minority community organizations;

13  minority contractors' groups; local, state, and federal

14  minority business assistance offices; and other organizations

15  that provide assistance in the recruitment and placement of

16  minority business enterprises or minority persons.

17         Section 14.  Paragraphs (a) and (c) of subsection (2)

18  and paragraphs (b) and (c) of subsection (4) of section

19  287.042, Florida Statutes, 1998 Supplement, are amended to

20  read:

21         287.042  Powers, duties, and functions.--The department

22  shall have the following powers, duties, and functions:

23         (2)(a)  To plan and coordinate purchases in volume and

24  to negotiate and execute purchasing agreements and contracts

25  for commodities and contractual services under which state

26  agencies shall make purchases pursuant to s. 287.056, and

27  under which a federal, county, municipality, institutions

28  qualified pursuant to s. 240.605, private nonprofit community

29  transportation coordinator designated pursuant to chapter 427,

30  while conducting business related solely to the Commission for

31  the Transportation Disadvantaged, or other local public agency

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  1  may make purchases. The department may restrict purchases from

  2  some term contracts to state agencies only for those term

  3  contracts where the inclusion of other governmental entities

  4  will have an adverse effect on competition or to those federal

  5  facilities located in this state. In such planning or

  6  purchasing the Small Minority Business and Economic

  7  Development Advocacy and Assistance Office may monitor to

  8  ensure that opportunities are afforded for contracting with

  9  minority business enterprises. The department, for state term

10  contracts, and all agencies, for multiyear contractual

11  services or term contracts, shall explore reasonable and

12  economical means to utilize certified minority business

13  enterprises. Purchases by any county, municipality, private

14  nonprofit community transportation coordinator designated

15  pursuant to chapter 427, while conducting business related

16  solely to the Commission for the Transportation Disadvantaged,

17  or other local public agency under the provisions in the state

18  purchasing contracts, and purchases, from the corporation

19  operating the correctional work programs, of products or

20  services that are subject to paragraph (1)(f), are exempt from

21  the competitive sealed bid requirements otherwise applying to

22  their purchases.

23         (c)  Any person who files an action protesting a

24  decision or intended decision pertaining to contracts

25  administered by the department or a state agency pursuant to

26  s. 120.57(3)(b) shall post with the department or the state

27  agency at the time of filing the formal written protest a bond

28  payable to the department or state agency in an amount equal

29  to 1 percent of the department's or the state agency's

30  estimate of the total volume of the contract or $5,000,

31  whichever is less, which bond shall be conditioned upon the

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  1  payment of all costs which may be adjudged against him or her

  2  in the administrative hearing in which the action is brought

  3  and in any subsequent appellate court proceeding. For protests

  4  of decisions or intended decisions of the department

  5  pertaining to agencies' requests for approval of exceptional

  6  purchases, the bond shall be in an amount equal to 1 percent

  7  of the requesting agency's estimate of the contract amount for

  8  the exceptional purchase requested or $5,000, whichever is

  9  less. In lieu of a bond, the department or state agency may,

10  in either case, accept a cashier's check or money order in the

11  amount of the bond. If, after completion of the administrative

12  hearing process and any appellate court proceedings, the

13  agency prevails, it shall recover all costs and charges which

14  shall be included in the final order or judgment, excluding

15  attorney's fees. This section shall not apply to protests

16  filed by the Small Minority Business and Economic Development

17  Advocacy and Assistance Office. Upon payment of such costs and

18  charges by the person protesting the award, the bond,

19  cashier's check, or money order shall be returned to him or

20  her. If the person protesting the award prevails, he or she

21  shall recover from the agency all costs and charges which

22  shall be included in the final order of judgment, excluding

23  attorney's fees.

24         (4)  To establish a system of coordinated, uniform

25  procurement policies, procedures, and practices to be used by

26  agencies in acquiring commodities and contractual services,

27  which shall include, but not be limited to:

28         (b)  Development of procedures for the releasing of

29  requests for proposals and invitations to bid, which

30  procedures shall include, but not be limited to, publication

31  in the Florida Administrative Weekly or on the Florida

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  1  Communities Network of notice for requests for proposals at

  2  least 28 days before the date set for submittal of proposals

  3  and publication of notice for invitations to bid at least 10

  4  calendar days before the date set for submission of bids. An

  5  agency may waive the requirement for notice in the Florida

  6  Administrative Weekly or on the Florida Communities Network.

  7  Notice of the request for proposals shall be mailed to

  8  prospective offerors at least 28 calendar days prior to the

  9  date for submittal of proposals. Notice of the invitation to

10  bid shall be mailed to prospective bidders at least 10

11  calendar days prior to the date set for submittal of bids. The

12  Small Minority Business and Economic Development Advocacy and

13  Assistance Office may consult with agencies regarding the

14  development of bid distribution procedures to ensure that

15  maximum distribution is afforded to certified minority

16  business enterprises as defined in s. 288.703.

17         (c)  Development of procedures for the receipt and

18  opening of bids or proposals by an agency. Such procedures

19  shall provide the Small Minority Business and Economic

20  Development Advocacy and Assistance Office an opportunity to

21  monitor and ensure that the contract award is consistent with

22  the original request for proposal or invitation to bid, in

23  accordance with s. 287.0945(6), and subject to the review of

24  bid responses within standard timelines.

25         Section 15.  Subsection (5) and paragraph (a) of

26  subsection (6) of section 287.057, Florida Statutes, 1998

27  Supplement, are amended to read:

28         287.057  Procurement of commodities or contractual

29  services.--

30         (5)  Upon issuance of any invitation to bid or request

31  for proposals, an agency shall forward to the department one

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  1  copy of each invitation to bid or request for proposals for

  2  all commodity and contractual services purchases in excess of

  3  the threshold amount provided in s. 287.017 for CATEGORY TWO.

  4  An agency shall also, upon request, furnish a copy of all

  5  competitive sealed bid or competitive sealed proposal

  6  tabulations. The Small Minority Business and Economic

  7  Development Advocacy and Assistance Office may also request

  8  from the agencies any information submitted to the department

  9  pursuant to this subsection.

10         (6)(a)  In order to strive to meet the minority

11  business enterprise procurement goals set forth in s.

12  287.0945, an agency may reserve any contract for competitive

13  sealed bidding only among certified minority business

14  enterprises. Agencies shall review all their contracts each

15  fiscal year and shall determine which contracts may be

16  reserved for bidding only among certified minority business

17  enterprises. This reservation may only be used when it is

18  determined, by reasonable and objective means, before the

19  invitation to bid that there are capable, qualified certified

20  minority business enterprises available to bid on a contract

21  to provide for effective competition. The Small Minority

22  Business and Economic Development Advocacy and Assistance

23  Office shall consult with any agency in reaching such

24  determination when deemed appropriate.

25         Section 16.  Subsections (1), (5), and (6) of section

26  287.0947, Florida Statutes, are amended to read:

27         287.0947  Florida Council on Small and Minority

28  Business Development; creation; membership; duties.--

29         (1)  On or after October 1, 1996, the Commission on

30  Small Business and Economic Development secretary of the

31  Department of Labor and Employment Security may create the

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  1  Florida Advisory Council on Small and Minority Business

  2  Development with the purpose of advising and assisting the

  3  executive administrator secretary in carrying out the

  4  executive administrator's secretary's duties with respect to

  5  minority businesses and economic and business development. It

  6  is the intent of the Legislature that the membership of such

  7  council include practitioners, laypersons, financiers, and

  8  others with business development experience who can provide

  9  invaluable insight and expertise for this state in the

10  diversification of its markets and networking of business

11  opportunities. The council shall initially consist of 19

12  persons, each of whom is or has been actively engaged in small

13  and minority business development, either in private industry,

14  in governmental service, or as a scholar of recognized

15  achievement in the study of such matters. Initially, the

16  council shall consist of members representing all regions of

17  the state and shall include at least one member from each

18  group identified within the definition of "minority person" in

19  s. 288.703(3), considering also gender and nationality

20  subgroups, and shall consist of the following:

21         (a)  Four members consisting of representatives of

22  local and federal small and minority business assistance

23  programs or community development programs.

24         (b)  Eight members composed of representatives of the

25  minority private business sector, including certified minority

26  business enterprises and minority supplier development

27  councils, among whom at least two shall be women and at least

28  four shall be minority persons.

29         (c)  Two representatives of local government, one of

30  whom shall be a representative of a large local government,

31

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  1  and one of whom shall be a representative of a small local

  2  government.

  3         (d)  Two representatives from the banking and insurance

  4  industry.

  5         (e)  Two members from the private business sector,

  6  representing the construction and commodities industries.

  7         (f)  The chairperson of the Florida Black Business

  8  Investment Board or the chairperson's designee.

  9         (g)  The chairperson of Enterprise Florida, Inc., or

10  the chairperson's designee.

11         (h)  The Secretary of the Department of Community

12  Affairs or the secretary's designee.

13

14  A candidate for appointment may be considered if eligible to

15  be certified as an owner of a minority business enterprise, or

16  if otherwise qualified under the criteria above. Vacancies may

17  be filled by appointment of the executive administrator

18  secretary, in the manner of the original appointment.

19         (5)  The powers and duties of the council include, but

20  are not limited to: researching and reviewing the role of

21  small and minority businesses in the state's economy;

22  reviewing issues and emerging topics relating to small and

23  minority business economic development; studying the ability

24  of financial markets and institutions to meet small business

25  credit needs and determining the impact of government demands

26  on credit for small businesses; assessing the implementation

27  of s. 187.201(22), requiring a state economic development

28  comprehensive plan, as it relates to small and minority

29  businesses; assessing the reasonableness and effectiveness of

30  efforts by any state agency or by all state agencies

31  collectively to assist minority business enterprises; and

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  1  advising the Governor, the executive administrator secretary,

  2  and the Legislature on matters relating to small and minority

  3  business development which are of importance to the

  4  international strategic planning and activities of this state.

  5         (6)  On or before January 1 of each year, the council

  6  shall present an annual report to the executive administrator

  7  secretary that sets forth in appropriate detail the business

  8  transacted by the council during the year and any

  9  recommendations to the executive administrator secretary,

10  including those to improve business opportunities for small

11  and minority business enterprises.

12         Section 17.  Subsections (5), (6), and (8) of section

13  288.703, Florida Statutes, 1998 Supplement, are amended to

14  read:

15         288.703  Definitions.--As used in this act, the

16  following words and terms shall have the following meanings

17  unless the content shall indicate another meaning or intent:

18         (5)  "Commission" "Department" means the Commission on

19  Small Business and Economic Development Department of Labor

20  and Employment Security.

21         (6)  "Ombudsman" means an office or individual whose

22  responsibilities include coordinating with the Small Minority

23  Business and Economic Development Advocacy and Assistance

24  Office for the interests of and providing assistance to small

25  and minority business enterprises in dealing with governmental

26  agencies and in developing proposals for changes in state

27  agency rules.

28         (8)  "Executive administrator" "Secretary" means the

29  executive administrator of the Commission on Small Business

30  and Economic Development secretary of the Department of Labor

31  and Employment Security.

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  1         Section 18.  Paragraph (a) of subsection (3) of section

  2  288.707, Florida Statutes, is amended to read:

  3         288.707  Florida Black Business Investment Board.--

  4         (3)  There is hereby created within the Office of

  5  Tourism, Trade, and Economic Development a body politic and

  6  corporate to be known as the Florida Black Business Investment

  7  Board, hereinafter referred to as the "board." The board is

  8  hereby constituted a public instrumentality, and the exercise

  9  by the board of the powers conferred by ss. 9-21, chapter

10  85-104, Laws of Florida, shall be deemed to be the performance

11  of an essential governmental function.

12         (a)  The board shall consist of eleven seven members

13  appointed by the Governor subject to confirmation by the

14  Senate, six of whom shall be experienced in investment finance

15  and business development, three of whom shall be

16  representatives of entities each of which shall have invested

17  an aggregate amount of no less than $500,000 in black business

18  investment corporations, one of whom must be a member of a

19  black business investment corporation, and one of whom shall

20  be a representative of a state certified minority business

21  enterprise. The chair of the Florida Development Finance

22  Corporation, created pursuant to s. 288.9604, shall be an ex

23  officio member of the board.

24         Section 19.  Paragraph (l) is added to subsection (3)

25  of section 288.901, Florida Statutes, to read:

26         288.901  Enterprise Florida, Inc.; creation;

27  membership; organization; meetings; disclosure.--

28         (3)  Enterprise Florida, Inc., shall be governed by a

29  board of directors.  The board of directors shall consist of

30  the following members:

31

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  1         (l)  The chairperson of the Florida Black Business

  2  Investment Board.

  3         Section 20.  Subsection (1) of section 288.9015,

  4  Florida Statutes, is amended to read:

  5         288.9015  Enterprise Florida, Inc.; purpose; duties.--

  6         (1)  Enterprise Florida, Inc., is the principal

  7  economic development organization for the state.  It shall be

  8  the responsibility of Enterprise Florida, Inc., to provide

  9  leadership for business development in Florida by aggressively

10  establishing a unified approach to Florida's efforts of

11  international trade and reverse investment; by aggressively

12  marketing the state as a probusiness location for potential

13  new investment; and by aggressively assisting in the creation,

14  retention, and expansion of existing businesses.  In support

15  of this effort, Enterprise Florida, Inc., may develop and

16  implement specific programs or strategies that address the

17  creation, expansion, and retention of Florida business,

18  including small and minority businesses; the development of

19  import and export trade; and the recruitment of worldwide

20  business.

21         Section 21.  Subsection (2) and paragraph (b) of

22  subsection (3) of section 288.905, Florida Statutes, are

23  amended to re

24         288.905  Duties of the board of directors of Enterprise

25  Florida, Inc.--

26         (2)  The board of directors shall, in conjunction with

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

28  Florida Black Business Investment Board, and the Small

29  Business and Economic Development Office, develop a strategic

30  plan for economic development for the State of Florida.  Such

31  plan shall be submitted to the Governor, the President of the

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  1  Senate, the Speaker of the House of Representatives, the

  2  Senate Minority Leader, and the House Minority Leader by

  3  January 1, 1997, and shall be updated or modified before

  4  January 1, 1998, and annually thereafter.  The plan must be

  5  approved by the board of directors prior to submission to the

  6  Governor and Legislature.  The plan shall include, but is not

  7  limited to:

  8         (a)  Allocation of public and private resources to

  9  specific activities that will return the greatest benefit to

10  the economy of this state. Including delineation on the amount

11  of funds that should be expended on each component of the

12  plan.

13         (b)  Identification of programs that will enhance the

14  capabilities of small and minority businesses.  The plan

15  should include ways to improve and increase the access to

16  information, services, and assistance for small and minority

17  businesses.

18         (c)1.  Specific provisions for the stimulation of

19  economic development and job creation in rural areas and

20  midsize cities and counties of the state. These provisions

21  shall include, but are not limited to, the identification of

22  all rural counties in the state and rural cities located in

23  nonrural counties; the identification of all midsize cities

24  and counties in the state; the identification of the economic

25  development and job creation goals of the rural cities and

26  counties and midsize cities; the identification of rural areas

27  of critical concern; the identification of specific local,

28  state, and federal financial and technical assistance

29  resources available to rural cities and counties and midsize

30  cities and counties for economic and community development;

31  the identification of private sector resources available to

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  1  rural cities and counties and midsize cities and counties for

  2  economic and community development; and specific methods for

  3  the use of the resources identified in the plan to meet the

  4  goals identified in the plan.

  5         2.  Enterprise Florida, Inc., shall involve the local

  6  governments of the cities and counties identified pursuant to

  7  subparagraph 1., as well as any other local, state, and

  8  federal rural development entities, both public and private,

  9  in developing and carrying out any provisions.

10         (d)1.  Specific provisions for the stimulation of

11  economic development and job creation in small businesses and

12  minority businesses. These provisions shall include, but are

13  not limited to, the identification of federal, state, and

14  local financial and technical resources available for small

15  businesses and minority businesses; the identification of

16  economic development and job creation goals for small and

17  minority businesses; the identification of private sector

18  resources available to small and minority businesses; the

19  development, in consultation with the Florida Black Business

20  Investment Board and the Small Business and Economic

21  Development Office, of a comprehensive strategic development

22  plan that will provide maximum practical opportunity for

23  economic growth of black-owned and other minority businesses

24  in this state; and specific methods for the use of the

25  resources identified in the plan to meet the goal of job

26  creation in small businesses and minority businesses in the

27  state.

28         2.  Enterprise Florida, Inc., shall involve local,

29  state, and federal small business and minority business

30  development agencies and organizations, both public and

31  private, in developing and carrying out any provisions.

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  1         (e)  Creation of workforce training programs that lead

  2  to better employment opportunities and higher wages.

  3         (f)  Promotion of business formation, expansion,

  4  recruitment, and retention, including programs that enhance

  5  access to appropriate forms of financing for businesses in

  6  this state, including small and minority-owned businesses.

  7         (g)  Promotion of the successful long-term

  8  internationalization of this state, including programs that

  9  establish viable overseas markets, generate foreign

10  investment, assist in meeting the financing requirements of

11  export-ready firms, broaden opportunities for international

12  joint venture relationships, use the resources of academic and

13  other institutions, coordinate trade assistance and

14  facilitation services, and facilitate availability of and

15  access to education and training programs which will assure

16  requisite skills and competencies necessary to compete

17  successfully in the global marketplace and promote the use of

18  small and minority businesses in this state.

19         (h)  Promotion of the growth of high technology and

20  other value-added industries and jobs.

21         (i)  Addressing the needs of blighted inner-city

22  communities that have unacceptable levels of unemployment and

23  economic disinvestment, with the ultimate goal of creating

24  jobs for the residents of such communities.

25         (j)  Identifying business sectors that are of current

26  or future importance to the state's economy and to the state's

27  worldwide business image, and developing specific strategies

28  to promote the development of such sectors.

29         (3)

30         (b)  The performance standards and measurable outcomes

31  established and regularly reviewed by Enterprise Florida,

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  1  Inc., under this subsection must also include benchmarks and

  2  goals to measure the impact of state economic development

  3  policies and programs and to assess the progress of small and

  4  minority businesses in this state. Such benchmarks and goals

  5  may include, but are not limited to:

  6         1.  Net annual job growth rate in this state compared

  7  to neighboring southern states and the United States as a

  8  whole.

  9         2.  Unemployment rate in this state compared to

10  neighboring southern states and the United States as a whole.

11         3.  Wage distribution based on the percentage of people

12  working in this state who earned 15 percent below the state

13  average, within 15 percent of the state average, and 15

14  percent or more above the state average.

15         4.  Annual percentage of growth in the production of

16  goods and services within Florida compared to neighboring

17  southern states and the United States as a whole.

18         5.  Changes in jobs in this state by major industry

19  based on the percentage of growth or decline in the number of

20  full-time or part-time jobs in this state.

21         6.  Number of new business startups in this state.

22         7.  Goods produced in this state that are exported to

23  other countries.

24         8.  Capital investment for commercial and industrial

25  purposes, agricultural production and processing, and

26  international trade.

27         Section 22.  Paragraph (d) of subsection (1) of section

28  288.906, Florida Statutes, is amended to read:

29         288.906  Annual report of Enterprise Florida, Inc.;

30  audits; confidentiality.--

31

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  1         (1)  Prior to December 1 of each year, Enterprise

  2  Florida, Inc., shall submit to the Governor, the President of

  3  the Senate, the Speaker of the House of Representatives, the

  4  Senate Minority Leader, and the House Minority Leader a

  5  complete and detailed report including, but not limited to:

  6         (d)  A description of the operations and

  7  accomplishments of Enterprise Florida, Inc., and its boards,

  8  with respect to furthering the development and viability of

  9  small and minority businesses, including any accomplishments

10  relating to capital access and technology and domestic and

11  international business development programs.

12

13  The detailed report required by this subsection shall also

14  include the information identified in paragraphs (a)-(h), if

15  applicable, for any board established within the corporate

16  structure of Enterprise Florida, Inc.

17         Section 23.  Paragraphs (g) and (h) of subsection (2)

18  of section 288.9412, Florida Statutes, are amended to read:

19         288.9412  International Trade and Economic Development

20  Board.--

21         (2)  The International Trade and Economic Development

22  Board shall be governed by a board of directors.  The board of

23  directors shall consist of the following members:

24         (g)  Members to be appointed by the Governor, subject

25  to confirmation by the Senate, consisting of the following:

26         1.  The chairperson of the World Trade Association of

27  Florida or the chairperson's designee.

28         2.  Two representatives from the state's deepwater

29  ports, chosen from a list of three names submitted to the

30  Governor by the Florida Ports Council. One representative

31

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  1  shall be from the Gulf of Mexico coast ports, and one

  2  representative shall be from the Atlantic coast ports.

  3         3.  The chairperson of the Florida Airport Managers

  4  Association or the chairperson's designee.

  5         4.  The chairperson of the Florida Custom Brokers and

  6  Forwarders Association or the chairperson's designee.

  7         5.  A person having extensive experience in foreign

  8  language instruction or international education.

  9         6.  The chairperson of the International Law Section of

10  The Florida Bar or the chairperson's designee.

11         7.  The chairperson of the Florida International

12  Banking Association or the chairperson's designee.

13         8.  A representative of a company in this state that is

14  actively engaged in the manufacture of products in this state

15  for sale in foreign markets.

16         9.  A member of the Florida Citrus Commission

17  experienced in the exportation of citrus products who owns,

18  operates, or is employed by a major company in this state that

19  is actively engaged in the exportation of citrus products from

20  this state to international markets.

21         10.  A representative of a major multinational company

22  with offices in this state.

23         11.  The chairperson of the Latin Chamber of Commerce

24  of the United States or the chairperson's designee.

25         12.  The chairperson of the Florida Black Business

26  Investment Board or the chairperson's designee.

27         (h)  Nine to 11 members from the public and private

28  sector, consisting of one member representing a municipal

29  economic development organization, one member representing a

30  county economic development organization, one member

31  representing a regional economic development organization, one

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  1  member representing an international economic development

  2  organization, one member representing a minority-owned

  3  business, and one member who, at the time of appointment, is a

  4  board member of a community development corporation that meets

  5  the requirements of s. 290.035, with the remaining members

  6  representing, and being actively involved in, Florida

  7  business, who shall be appointed by the Governor, subject to

  8  Senate confirmation.

  9         Section 24.  Subsection (3) of section 288.9414,

10  Florida Statutes, is amended to read:

11         288.9414  Powers and authority of board of directors of

12  International Trade and Economic Development Board.--

13         (3)  Develop intensive export assistance programs for

14  small and medium-sized export firms, including minority-owned

15  businesses.  The partnership, through Enterprise Florida,

16  Inc., may enter into contractual relations with export-ready

17  firms and may impose fees or other charges for services

18  provided.

19         Section 25.  Paragraph (c) of subsection (2) of section

20  288.9611, Florida Statutes, is amended to read:

21         288.9611  Capital development board; creation, purpose,

22  membership.--

23         (2)  The capital development board shall be governed by

24  a board of directors.  The board of directors shall consist of

25  the following members:

26         (c)  Nine to 11 members from the public and private

27  sector consisting of, but not limited to, at least three

28  representatives of the commercial banking industry, a

29  representative of the venture capital industry, an economic

30  development professional, the chairperson of the Florida Black

31  Business Investment Board or the chairperson's designee, and a

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  1  manufacturing industry representative, who shall be appointed

  2  by the Governor from a list of nominees as provided herein,

  3  subject to Senate confirmation.

  4         Section 26.  Subsection (1) of section 288.9613,

  5  Florida Statutes, is amended to read:

  6         288.9613  Powers and authority of the capital

  7  development board.--The capital development board shall have

  8  all the powers and authority, not explicitly prohibited by

  9  statute, necessary or convenient to carry out and effectuate

10  the purposes of this act, as well as the functions, duties,

11  and responsibilities of the board, including, but not limited

12  to, the following:

13         (1)  Advise and assist in the formulation and

14  coordination of the state's economic development policy

15  regarding capital availability for the formation, growth, and

16  development of firms critical to achieve the purposes of the

17  capital board, including small and minority-owned businesses,

18  as stated in this act and consistent with the policies of the

19  board of directors of Enterprise Florida, Inc.

20         Section 27.  Section 288.9614, Florida Statutes, is

21  amended to read:

22         288.9614  Authorized programs.--The capital development

23  board may take any action that it deems necessary to achieve

24  the purposes of this act in partnership with private

25  enterprises, public agencies, and other organizations,

26  including, but not limited to, efforts to address the

27  long-term debt needs of small-sized and medium-sized firms and

28  small and minority-owned businesses, to address the needs of

29  microenterprises, to expand availability of venture capital,

30  and to increase international trade and export finance

31

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  1  opportunities for firms critical to achieving the purposes of

  2  this act.

  3         Section 28.  This act shall take effect July 1, 1999.

  4

  5            *****************************************

  6                       LEGISLATIVE SUMMARY

  7    In sections relating to property and services
      procurement:
  8         (1)  Requires the Board of Regents and the university
    presidents to comply with the minority business enterprise
  9  program.
           (2)  Provides for price preferences in historically
10  underutilized business zones.
           (3)  Creates a small business enterprise program with
11  incentives, goals, and size standards.
           (4)  Prohibits government employees from discriminating
12  in contracting and procurement activities.
           (5)  Revises certification criteria.
13         (6)  Provides for flexibility in statewide reciprocal
    certification agreements.
14         (7)  Creates the Commission on Small Business and
    Economic Development.
15         (8)  Renames the Minority Business Advocacy and
    Assistance Office as the Small Business and Economic
16  Development Office.
           (9)  Revises requirements for expenditure percentages
17  for specified minorities.
           (10)  Provides for the appointment of a Minority
18  Business Ombudsman.
           (11)  Creates a mentor and protege program.
19         (12)  Establishes a management and technical assistance
    program for small and minority business enterprises.
20         (13)  Authorizes a linked-deposit program for minority
    and small business enterprises.
21         (14)  Extends the expiration date of the
    enterprise-zone linked-deposit program.
22         (15)  Revises provisions relating to the Florida Black
    Business Development Board, Enterprise Florida, Inc., the
23  International Trade and Economic Development Board, and the
    capital development board to include consideration of small,
24  black-owned, and minority-owned businesses.

25

26

27

28

29

30

31

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