House Bill 0785

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    Florida House of Representatives - 1999                 HB 785

        By Representative Eggelletion






  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; creating s. 287.0941, F.S.;

16         prohibiting specified activities; providing

17         civil penalties; amending s. 287.0943, F.S.;

18         revising certification criteria for certain

19         minority business enterprises; amending s.

20         287.09431, F.S.; providing for flexibility in

21         statewide reciprocal certification agreements;

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

23         Commission on Small Business and Economic

24         Development composed of the Governor and

25         Cabinet; renaming the Minority Business

26         Advocacy and Assistance Office as the Small

27         Business and Economic Development Office;

28         revising procedural requirements for property

29         and services expenditure percentages for

30         specified minorities; requiring the office to

31         develop procedures to establish dollar goals by

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  1         procurement category for certain agencies;

  2         providing an expiration date; providing for the

  3         appointment of a Minority Business Ombudsman;

  4         creating a mentor and protege program; creating

  5         s. 287.0946, F.S.; authorizing the Small

  6         Business and Economic Development Office to

  7         establish a linked-deposit program for minority

  8         and small business enterprises; providing an

  9         expiration date; amending s. 290.0075, F.S.;

10         extending the expiration date of the

11         enterprise-zone linked-deposit program;

12         amending ss. 17.11, 255.102, 287.042, 287.057,

13         287.0947, 288.703, F.S.; conforming provisions;

14         providing an effective date.

15

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

17

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

19  Statutes, 1998 Supplement, is amended to read:

20         240.205  Board of Regents incorporated.--The Board of

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

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

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

24  amendatory hereof and shall:

25         (6)  Acquire real and personal property and contract

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

27  contracts for the acquisition of commodities, goods,

28  equipment, contractual services, leases of real and personal

29  property, and construction. The acquisition may include

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

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

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  1  purchase price.  The board may also acquire the same

  2  commodities, goods, equipment, contractual services, leases,

  3  and construction for use by a university when the contractual

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

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

  6  the Internal Improvement Trust Fund and shall be transferred

  7  and conveyed by it. Notwithstanding any other provisions of

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

  9  provisions of s. 287.055 for the procurement of professional

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

11  other sections relating to the minority business enterprise

12  program therein.

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

14  Statutes, 1998 Supplement, is amended to read:

15         240.227  University presidents; powers and duties.--The

16  president is the chief administrative officer of the

17  university and is responsible for the operation and

18  administration of the university.  Each university president

19  shall:

20         (12)  Approve and execute contracts for the acquisition

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

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

23  the university, provided such contracts are made pursuant to

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

25  approved programs of the university, and do not require

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

27  made by installment or lease-purchase contract.  Such

28  contracts may provide for the payment of interest on the

29  unpaid portion of the purchase price. Notwithstanding any

30  other provisions of this subsection, university presidents

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

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  1  procurement of professional services and with s. 287.09451 and

  2  other sections relating to the minority business enterprise

  3  program, and may approve and execute all contracts for

  4  planning, construction, and equipment for projects with

  5  building programs and construction budgets approved by the

  6  Board of Regents.

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

  8  287.012, Florida Statutes, 1998 Supplement, are amended to

  9  read:

10         287.012  Definitions.--The following definitions shall

11  apply in this part:

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

13  departments, boards, commissions, divisions, bureaus, and

14  councils and any other unit of organization, however

15  designated, of the executive branch of state government.

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

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

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

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

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

21  Economic Development Advocacy and Assistance Office of the

22  Commission on Small Business and Economic Development

23  Department of Labor and Employment Security.

24         Section 4.  Section 287.085, Florida Statutes, is

25  created to read:

26         287.085  Historically underutilized business zones.--

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

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

29  business participation are received by a state agency or the

30  State University System for the procurement of goods or

31  services under a contract solicitation, a bid or proposal

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  1  received from a certified zone business must be awarded a

  2  10-percent price preference, a state-of-Florida vendor

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

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

  5  business must:

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

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

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

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

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

11  moneys actually expended on private vendors and use purchasing

12  incentives with zone businesses.

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

14  means a historically underutilized business zone in a

15  geographical area that has been designated as an enterprise

16  zone under chapter 290 or an area targeted by the Governor's

17  Front Porch Florida Initiative.

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

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

20  towards the goals specified in s. 287.09451.

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

22  contracts subject to chapter 339.

23         (6)  The Commission on Small Business and Economic

24  Development shall adopt rules, monitor and report progress,

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

26  agencies and the State University System toward making

27  expenditures for commodities, contractual services,

28  construction, and architectural and engineering services with

29  historically-underutilized-business-zones businesses.

30         Section 5.  Section 287.086, Florida Statutes, is

31  created to read:

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  1         287.086  Small business enterprise program.--

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

  3  is located in an area targeted by the Governor's Front Porch

  4  Florida Initiative or domiciled in the state and that is

  5  independently owned and operated and does not exceed the small

  6  business size standard in the relevant standard industry code,

  7  as outlined in 13 C.F.R., part 121. Any business that is

  8  certified as a small business by any governmental entity is

  9  deemed reciprocally certified for this program upon

10  presentation of current certification letters or certificates

11  from a governmental entity or its designee to the Small

12  Business and Economic Development Office. This office must

13  verify with the certifying governmental entity that the

14  information is current and that the business does not exceed

15  the established size standards of 13 C.F.R., part 121. Upon

16  verification, the firm may be registered with the Small

17  Business and Economic Development Office.

18         (2)  Purchases of competitively bid commodities,

19  construction, contractual services, and professional services

20  may be reserved by state agencies and the State University

21  System for registered small business enterprises. Reserved

22  procurement must be by economically feasible contracts or

23  portions of contracts within the capability of small business

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

25  necessary competition, at least three registered firms must be

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

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

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

29  small business enterprises.

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

31  state projects for small business enterprises under s.

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

  2  procedures to determine whether to waive bond requirements for

  3  a project:

  4         (a)  Identify those projects that are eligible;

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

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

  7  and

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

  9  small business enterprises are registered to perform the work.

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

11  Economic Development Office is awarded a state project as a

12  prime contractor, state agencies, or state universities may

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

14  shall not be construed to create a contractual relationship

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

16  outside vendors of the small business enterprise. It is

17  intended solely for the benefit and assistance of the small

18  business enterprise.

19         (5)  The small business enterprise must be registered

20  with the Commission on Small Business and Economic

21  Development.

22         (6)  The Commission on Small Business Development shall

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

24  convenient to guide all state agencies and state universities

25  toward making expenditures for commodities, contractual

26  services, construction, and architecture and engineering

27  services to small business enterprises.

28         Section 6.  Section 287.0941, Florida Statutes, is

29  created to read:

30         287.0941  Discrimination in procurement of personal

31  property and services; penalties.--

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  1         (1)  It is unlawful for any employee of the state, a

  2  municipality, a county, a school district, a special district,

  3  or a political subdivision, because of race, color, religion,

  4  sex, national origin, age, handicap, or marital status, to:

  5         (a)  Discriminate against a person in the terms,

  6  conditions, or privileges of participation in contracting and

  7  procurement activities.

  8         (b)  Cause to be made any untrue or intentionally

  9  misleading statement or advertisement regarding the

10  availability of contracting and procurement activities.

11         (c)  Aid, abet, incite, compel, or coerce any person to

12  engage in any of the practices prohibited by this section or

13  to obstruct or prevent any person from complying with this

14  section.

15         (2)  Violation of any provision of subsection (1)

16  shall, under applicable procedures of law, constitute grounds

17  for and may be punished by:

18         (a)  Dismissal from employment;

19         (b)  Suspension from employment for not more than 90

20  days without pay;

21         (c)  Demotion; or

22         (d)  Reduction in salary.

23         Section 7.  Paragraphs (b) and (e) of subsection (1)

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

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

26         287.0943  Certification of minority business

27  enterprises.--

28         (1)

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

30  comprised of officials representing the department, counties,

31  municipalities, school boards, special districts, and other

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  1  political subdivisions of the state who administer programs to

  2  assist minority businesses in procurement or development in

  3  government-sponsored programs. The following organizations may

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

  5  description above:

  6         1.  The Florida League of Cities, Inc.

  7         2.  The Florida Association of Counties.

  8         3.  The Florida School Boards Association, Inc.

  9         4.  The Association of Special Districts.

10         5.  The Florida Association of Minority Business

11  Enterprise Officials.

12         6.  The Florida Association of Government Purchasing

13  Officials.

14

15  In addition, the Small Minority Business and Economic

16  Development Advocacy and Assistance Office shall appoint seven

17  members consisting of three representatives of minority

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

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

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

21  The chairperson of the Legislative Committee on

22  Intergovernmental Relations or a designee shall be a member of

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

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

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

26  organization or agency originally authorized to appoint the

27  position.

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

29  certification criteria shall, at a minimum:

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

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

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

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

  3  minority owner in any trade or profession that the minority

  4  business enterprise will offer to the state when certified;

  5  however, the minority licenseholder need not be the

  6  controlling owner of the enterprise, but must hold an

  7  ownership interest. Minority business enterprises presently

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

  9  requirement until 5 years after the effective date of this

10  act.

11         2.  If present ownership was obtained by transfer,

12  require the minority person on whom eligibility is based to

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

14  minimum of 2 years, when any previous majority ownership

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

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

17  person on whom eligibility is based. This requirement shall

18  not apply to minority persons who are otherwise eligible who

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

20  professional licensure to operate and who will be the

21  qualifying licenseholder for the firm when certified.  A

22  transfer made within a related immediate family group from a

23  nonminority person to a minority person in order to establish

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

25  made solely for purposes of satisfying certification criteria

26  and shall render such ownership invalid for purposes of

27  qualifying for such certification if the combined total net

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

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

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

31

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

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

  3         3.  Require that prospective certified minority

  4  business enterprises be currently performing a useful business

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

  6  business function which results in the provision of materials,

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

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

  9  a nonminority business does not constitute a useful business

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

11  supplier that has a distributorship agreement, other forms of

12  industry agreements, or lines of credit and that demonstrates

13  a means of procuring and transporting goods, including catalog

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

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

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

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

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

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

20  representatives, sales representatives, and nonstocking

21  distributors are considered as conduits that do not perform a

22  useful business function, unless normal industry practice

23  dictates.

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

25  Small Business and Economic Development Office Department of

26  Labor and Employment Security shall monitor and implement

27  execute the statewide reciprocal certification and interlocal

28  agreement established under s. 287.09431 on behalf of the

29  state. The office shall certify minority business enterprises

30  in accordance with statewide reciprocal certification the

31  agreement and, by affidavit, shall recertify such minority

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  1  business enterprises not less than once every 2 years each

  2  year.

  3         Section 8.  Section 287.09431, Florida Statutes, is

  4  amended to read:

  5         287.09431  Statewide reciprocal certification and

  6  interlocal agreement on certification of business concerns for

  7  the status of minority business enterprise.--The statewide

  8  reciprocal certification and interlocal agreement on

  9  certification of business concerns for the status of minority

10  business enterprise is hereby enacted and entered into with

11  all jurisdictions or organizations legally joining therein.

12  The executive administrator of the Small Business and Economic

13  Development Office may enter into flexible agreements with all

14  jurisdictions for the purpose of effectuating this section.

15  Therefore, additional eligibility criteria may be permissible

16  in order for local government jurisdictions and private

17  organizations to comply with local and federal laws,

18  especially those laws that are enacted to counter the findings

19  of disparity studies. The executive administrator of the Small

20  Business and Economic Development Office may negotiate the

21  terms of agreement with the local government jurisdictions and

22  private organizations to include as many participating

23  entities as feasible, whether or not they have minority

24  business programs. If, within 2 years from the date that the

25  certification core criteria are approved by the Department of

26  Labor and Employment Security, the agreement included herein

27  is not executed by a majority of county and municipal

28  governing bodies that administer a minority business

29  assistance program on the effective date of this act, then the

30  Legislature shall review this agreement. It is the intent of

31  the Legislature that if the agreement is not executed by a

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  1  majority of the requisite governing bodies, then a statewide

  2  uniform certification process should be adopted, and that said

  3  agreement should be repealed and replaced by a mandatory state

  4  government certification process.

  5

  6                            ARTICLE I

  7

  8         PURPOSE, FINDINGS, AND POLICY.--

  9         (1)  The parties to this agreement, desiring by common

10  action to establish a uniform certification process in order

11  to reduce the multiplicity of applications by business

12  concerns to state and local governmental programs for minority

13  business assistance, declare that it is the policy of each of

14  them, on the basis of cooperation with one another, to remedy

15  social and economic disadvantage suffered by certain groups,

16  resulting in their being historically underutilized in

17  ownership and control of commercial enterprises. Thus, the

18  parties seek to address this history by increasing the

19  participation of the identified groups in opportunities

20  afforded by government procurement.

21         (2)  The parties find that the State of Florida

22  presently certifies firms for participation in the minority

23  business assistance programs of the state. The parties find

24  further that some counties, municipalities, school boards,

25  special districts, and other divisions of local government

26  require a separate, yet similar, and in most cases redundant

27  certification in order for businesses to participate in the

28  programs sponsored by each government entity.

29         (3)  The parties find further that this redundant

30  certification has proven to be unduly burdensome to the

31

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  1  minority-owned firms intended to benefit from the underlying

  2  purchasing incentives.

  3         (4)  The parties agree that:

  4         (a)  They will facilitate integrity, stability, and

  5  cooperation in the statewide and interlocal certification

  6  process, and in other elements of programs established to

  7  assist minority-owned businesses.

  8         (b)  They shall cooperate with agencies, organizations,

  9  and associations interested in certification and other

10  elements of minority business assistance.

11         (c)  It is the purpose of this agreement to provide for

12  a uniform process whereby the status of a business concern may

13  be determined in a singular review of the business information

14  for these purposes, in order to eliminate any undue expense,

15  delay, or confusion to the minority-owned businesses in

16  seeking to participate in the minority business assistance

17  programs of state and local jurisdictions.

18

19                            ARTICLE II

20

21         DEFINITIONS.--As used in this agreement and contracts

22  made pursuant to it, unless the context clearly requires

23  otherwise:

24         (1)  "Awarding organization" means any political

25  subdivision or organization authorized by law, ordinance, or

26  agreement to enter into contracts and for which the governing

27  body has entered into this agreement.

28         (2)  "Department" means the Department of Labor and

29  Employment Security.

30         (3)  "Minority" means a person who is a lawful,

31  permanent resident of the state, having origins in one of the

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  1  minority groups as described and adopted by the Department of

  2  Labor and Employment Security, hereby incorporated by

  3  reference.

  4         (4)  "Minority business enterprise" means any small

  5  business concern as defined in subsection (5) that meets all

  6  of the criteria described and adopted by the Department of

  7  Labor and Employment Security, hereby incorporated by

  8  reference.

  9         (5)  "Participating state or local organization" means

10  any political subdivision of the state or organization

11  designated by such that elects to participate in the

12  certification process pursuant to this agreement, which has

13  been approved according to s. 287.0943(2) and has legally

14  entered into this agreement.

15         (6)  "Small business concern" means an independently

16  owned and operated business concern which is of a size and

17  type as described and adopted by vote related to this

18  agreement of the commission, hereby incorporated by reference.

19

20                           ARTICLE III

21

22         STATEWIDE AND INTERLOCAL CERTIFICATIONS.--

23         (1)  All awarding organizations shall accept a

24  certification granted by any participating organization which

25  has been approved according to s. 287.0943(2) and has entered

26  into this agreement, as valid status of minority business

27  enterprise.

28         (2)  A participating organization shall certify a

29  business concern that meets the definition of minority

30  business enterprise in this agreement, in accordance with the

31  duly adopted eligibility criteria.

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  1         (3)  All participating organizations shall issue notice

  2  of certification decisions granting or denying certification

  3  to all other participating organizations within 14 days of the

  4  decision. Such notice may be made through electronic media.

  5         (4)  No certification will be granted without an onsite

  6  visit to verify ownership and control of the prospective

  7  minority business enterprise, unless verification can be

  8  accomplished by other methods of adequate verification or

  9  assessment of ownership and control.

10         (5)  The certification of a minority business

11  enterprise pursuant to the terms of this agreement shall not

12  be suspended, revoked, or otherwise impaired except on any

13  grounds which would be sufficient for revocation or suspension

14  of a certification in the jurisdiction of the participating

15  organization.

16         (6)  The certification determination of a party may be

17  challenged by any other participating organization by the

18  issuance of a timely written notice by the challenging

19  organization to the certifying organization's determination

20  within 10 days of receiving notice of the certification

21  decision, stating the grounds therefor.

22         (7)  The sole accepted grounds for challenge shall be

23  the failure of the certifying organization to adhere to the

24  adopted criteria or the certifying organization's rules or

25  procedures, or the perpetuation of a misrepresentation or

26  fraud by the firm.

27         (8)  The certifying organization shall reexamine its

28  certification determination and submit written notice to the

29  applicant and the challenging organization of its findings

30  within 30 days after the receipt of the notice of challenge.

31

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  1         (9)  If the certification determination is affirmed,

  2  the challenging agency may subsequently submit timely written

  3  notice to the firm of its intent to revoke certification of

  4  the firm.

  5

  6                            ARTICLE IV

  7

  8         APPROVED AND ACCEPTED PROGRAMS.--Nothing in this

  9  agreement shall be construed to repeal or otherwise modify any

10  ordinance, law, or regulation of a party relating to the

11  existing minority business assistance provisions and

12  procedures by which minority business enterprises participate

13  therein.

14

15                            ARTICLE V

16

17         TERM.--The term of the agreement shall be 5 years,

18  after which it may be reexecuted by the parties.

19

20                            ARTICLE VI

21

22         AGREEMENT EVALUATION.--The designated state and local

23  officials may meet from time to time as a group to evaluate

24  progress under the agreement, to formulate recommendations for

25  changes, or to propose a new agreement.

26

27                           ARTICLE VII

28

29         OTHER ARRANGEMENTS.--Nothing in this agreement shall be

30  construed to prevent or inhibit other arrangements or

31  practices of any party in order to comply with federal law.

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  1

  2                           ARTICLE VIII

  3

  4         EFFECT AND WITHDRAWAL.--

  5         (1)  This agreement shall become effective when

  6  properly executed by a legal representative of the

  7  participating organization, when enacted into the law of the

  8  state and after an ordinance or other legislation is enacted

  9  into law by the governing body of each participating

10  organization. Thereafter it shall become effective as to any

11  participating organization upon the enactment of this

12  agreement by the governing body of that organization.

13         (2)  Any party may withdraw from this agreement by

14  enacting legislation repealing the same, but no such

15  withdrawal shall take effect until one year after the

16  governing body of the withdrawing party has given notice in

17  writing of the withdrawal to the other parties.

18         (3)  No withdrawal shall relieve the withdrawing party

19  of any obligations imposed upon it by law.

20

21                            ARTICLE IX

22

23         FINANCIAL RESPONSIBILITY.--

24         (1)  A participating organization shall not be

25  financially responsible or liable for the obligations of any

26  other participating organization related to this agreement.

27         (2)  The provisions of this agreement shall constitute

28  neither a waiver of any governmental immunity under Florida

29  law nor a waiver of any defenses of the parties under Florida

30  law. The provisions of this agreement are solely for the

31

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  1  benefit of its executors and not intended to create or grant

  2  any rights, contractual or otherwise, to any person or entity.

  3

  4                            ARTICLE X

  5

  6         VENUE AND GOVERNING LAW.--The obligations of the

  7  parties to this agreement are performable only within the

  8  county where the participating organization is located, and

  9  statewide for the Minority Business Advocacy and Assistance

10  Office, and venue for any legal action in connection with this

11  agreement shall lie, for any participating organization except

12  the Minority Business Advocacy and Assistance Office,

13  exclusively in the county where the participating organization

14  is located. This agreement shall be governed by and construed

15  in accordance with the laws and court decisions of the state.

16

17                            ARTICLE XI

18

19         CONSTRUCTION AND SEVERABILITY.--This agreement shall be

20  liberally construed so as to effectuate the purposes thereof.

21  The provisions of this agreement shall be severable and if any

22  phrase, clause, sentence, or provision of this agreement is

23  declared to be contrary to the State Constitution or the

24  United States Constitution, or the application thereof to any

25  government, agency, person, or circumstance is held invalid,

26  the validity of the remainder of this agreement and the

27  applicability thereof to any government, agency, person, or

28  circumstance shall not be affected thereby. If this agreement

29  shall be held contrary to the State Constitution, the

30  agreement shall remain in full force and effect as to all

31  severable matters.

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  1         Section 9.  Section 287.09451, Florida Statutes, 1998

  2  Supplement, is amended to read:

  3         287.09451  Commission on Small Business and Economic

  4  Development Minority Business Advocacy and Assistance Office;

  5  powers, duties, and functions.--

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

  7  minority business enterprises face extraordinary obstacles and

  8  barriers in this state which impact their ability to compete

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

10  provide these businesses with technical, managerial,

11  contracting, and financial assistance in order to make their

12  search for government contracts consistently fruitful. The

13  Legislature further finds that there is evidence of a

14  systematic pattern of past and continuing racial

15  discrimination against minority business enterprises and a

16  disparity in the availability and use of minority business

17  enterprises in the state procurement system. It is determined

18  to be a compelling state interest to rectify that

19  discrimination and disparity. Based upon statistical data

20  profiling discrimination, the Legislature has enacted this

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

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

23  state contracts for the purchase of commodities, contractual

24  services, architectural and engineering services, and in

25  construction contracts. The purpose and intent of this section

26  is to increase participation by minority business enterprises

27  in the state procurement system. This purpose will be

28  accomplished by encouraging the use of minority business

29  enterprises and the entry of new and diversified minority

30  business enterprises into the marketplace.

31

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

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

  3  Governor and the Cabinet. The commission is assigned to the

  4  Executive Office of the Governor for administrative purposes.

  5  The Governor is the chairperson of the commission, and may

  6  call a meeting of the commission when the need arises. All

  7  actions taken by the commission may be taken by approval of a

  8  simple majority.

  9         (3)  An executive administrator of the commission shall

10  be appointed and may be removed by the Governor with the

11  approval of three members of the Cabinet and shall serve at

12  the direction of the commission.

13         (4)  The executive administrator is responsible for all

14  administrative functions of the commission, including

15  budgeting, personnel, purchasing, and such additional matters

16  as are delegated by the commission.

17         (5)  The executive administrator shall employ, within

18  budgetary limitations, such staff as are necessary to perform

19  adequately the functions of the commission.

20         (6)  The executive administrator shall develop a budget

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

22  Office of the Governor.

23         (7)  The commission shall:

24         (a)  Provide overall leadership and promote

25  coordination of economic and business development resources

26  for the benefit of minority business enterprises and of

27  distressed communities that are affected by the business.

28         (b)  Provide direction relating to economic and

29  business development of minority business enterprises to

30  regional and statewide planning entities and county,

31  municipal, and special district minority business enterprise

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  1  programs to help promote the redevelopment of distressed areas

  2  and minority business enterprises and minority and small

  3  business enterprise programs, where necessary, and to foster

  4  strategic alliances among these entities so as to target

  5  resources and achieve specific objectives in the economic and

  6  business development of minority business enterprises.

  7         (c)  Develop a clear statement of the mission, desired

  8  outcomes and strategies for accomplishing the outcomes, and

  9  performance measures to assess whether the outcomes are being

10  achieved for the state's small and minority business

11  enterprise programs. The goals are to:

12         1.  Increase the size and profitability of minority

13  businesses served by the programs.

14         2.  Increase the economic self-sufficiency and

15  competitiveness of minority businesses, as measured by their

16  ability to independently obtain necessary financial capital

17  and surety bonding, and to successfully compete for larger

18  government contracts, in terms of gross contract amount,

19  outside a served or sheltered market.

20         3.  Significantly reduce the disparities evidenced by a

21  statistical analysis of the availability and use of minority

22  businesses for state procurement.

23         (d)  Develop an analysis of the existing strategies of

24  the state's minority business enterprise programs to determine

25  whether the strategies are cost-effective or whether

26  alternative strategies should be developed to more

27  cost-effectively achieve the desired outcomes.

28         (e)  Submit the information required to be developed to

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

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

31  systematic  pattern of past and continuing racial

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  1  discrimination against minority business enterprises and a

  2  disparity in the availability and use of minority business

  3  enterprises in the state procurement system. It is determined

  4  to be a compelling state interest to rectify such

  5  discrimination and disparity. Based upon statistical data

  6  profiling this discrimination, the Legislature has enacted

  7  race-conscious and gender-conscious remedial programs to

  8  ensure minority participation in the economic life of the

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

10  services, and in construction contracts. The purpose and

11  intent of this section is to increase participation by

12  minority business enterprises accomplished by encouraging the

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

14  diversified minority business enterprises into the

15  marketplace.

16         (2)  The Minority Business Advocacy and Assistance

17  Office is established within the Department of Labor and

18  Employment Security to assist minority business enterprises in

19  becoming suppliers of commodities, services, and construction

20  to state government.

21         (3)  The secretary shall appoint an executive director

22  for the Minority Business Advocacy and Assistance Office, who

23  shall serve at the pleasure of the secretary.

24         (8)(4)  The Small Minority and Economic Development

25  Business Advocacy and Assistance Office is established within

26  the commission to assist small and minority businesses in

27  becoming suppliers of commodities, services, and construction

28  to state governments. The Small Business and Economic

29  Development Office shall have the following powers, duties,

30  and functions:

31

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

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

  3  with the minority business enterprise procurement goals set

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

  5  Small Minority Business and Economic Development Enterprise

  6  Assistance Office in determining good faith effort shall

  7  include, but not be limited to:

  8         1.  Whether the agency scheduled presolicitation or

  9  prebid meetings for the purpose of informing minority business

10  enterprises of contracting and 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 agency effectively used services and

15  resources of available minority community organizations;

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

17  minority business assistance offices; and other organizations

18  that provide assistance in the recruitment and placement of

19  minority business enterprises or minority persons.

20         4.  Whether the agency provided written notice to a

21  reasonable number of minority business enterprises that their

22  interest in contracting with the agency was being solicited in

23  sufficient time to allow the minority business enterprises to

24  participate effectively.

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

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

27  contractual requirements relating to the use of services or

28  commodities of a minority business enterprise under s.

29  287.094(2). Factors which shall be considered by the Small

30  Minority Business and Economic Development Advocacy and

31

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  1  Assistance Office in determining whether a contractor has made

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

  3         1.  Whether the contractor attended any presolicitation

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

  5  minority business enterprises of contracting and

  6  subcontracting opportunities.

  7         2.  Whether the contractor advertised in general

  8  circulation, trade association, or minority-focus media

  9  concerning the subcontracting opportunities.

10         3.  Whether the contractor provided written notice to a

11  reasonable number of specific minority business enterprises

12  that their interest in the contract was being solicited in

13  sufficient time to allow the minority business enterprises to

14  participate effectively.

15         4.  Whether the contractor followed up initial

16  solicitations of interest by contacting minority business

17  enterprises or minority persons to determine with certainty

18  whether the minority business enterprises or minority persons

19  were interested.

20         5.  Whether the contractor selected portions of the

21  work to be performed by minority business enterprises in order

22  to increase the likelihood of meeting the minority business

23  enterprise procurement goals, including, where appropriate,

24  breaking down contracts into economically feasible units to

25  facilitate minority business enterprise participation.

26         6.  Whether the contractor provided interested minority

27  business enterprises or minority persons with adequate

28  information about the plans, specifications, and requirements

29  of the contract or the availability of jobs.

30         7.  Whether the contractor negotiated in good faith

31  with interested minority business enterprises or minority

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  1  persons, not rejecting minority business enterprises or

  2  minority persons as unqualified without sound reasons based on

  3  a thorough investigation of their capabilities.

  4         8.  Whether the contractor effectively used the

  5  services of available minority community organizations;

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

  7  minority business assistance offices; and other organizations

  8  that provide assistance in the recruitment and placement of

  9  minority business enterprises or minority persons.

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

11  convenient to guide all state agencies toward making

12  expenditures for commodities, contractual services,

13  construction, and architectural and engineering services with

14  certified minority business enterprises in accordance with the

15  minority business enterprise procurement goals set forth in s.

16  287.042.

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

18  services, commodities, and construction from minority business

19  enterprises in conjunction with the Department of Banking and

20  Finance as specified in s. 17.11.

21         (e)  To receive and disseminate information relative to

22  procurement opportunities, availability of minority business

23  enterprises, and technical assistance.

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

25  achieving procurement objectives.

26         (g)  To provide a central minority business enterprise

27  certification process which includes independent verification

28  of status as a minority business enterprise.

29         (h)  To develop procedures to investigate complaints

30  against minority business enterprises or contractors alleged

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

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  1  287.0943, that may include visits to worksites or business

  2  premises, and to refer all information on businesses suspected

  3  of misrepresenting minority status to the Commission on Small

  4  Business and Economic Development Department of Labor and

  5  Employment Security for investigation. When an investigation

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

  7  has occurred, the commission Department of Labor and

  8  Employment Security shall refer the matter to the office of

  9  the Attorney General, Department of Legal Affairs, for

10  prosecution.

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

12  enterprises which have been certified and provide this

13  information to any agency or business requesting it.

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

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

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

17  business development plan.

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

19  Commission on Small Business and Economic Development Small

20  and Minority Business Advisory Council to keep the commission

21  council informed on issues relating to minority enterprise

22  procurement.

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

24  enterprises, and coordinate with the small and minority

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

26  shall include:

27         1.  Ensuring that agencies supported by state funding

28  effectively target the delivery of services and resources, as

29  related to minority business enterprises.

30         2.  Establishing standards within each industry with

31  which the state government contracts on how agencies and

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  1  contractors may provide the maximum practicable opportunity

  2  for minority business enterprises.

  3         3.  Assisting agencies and contractors by providing

  4  outreach to minority businesses, by specifying and monitoring

  5  technical and managerial competence for minority business

  6  enterprises, and by consulting in planning of agency

  7  procurement to determine how best to provide opportunities for

  8  minority business enterprises.

  9         4.  Integrating technical and managerial assistance for

10  minority business enterprises with government contracting

11  opportunities.

12         (m)  To make and execute contracts and other

13  instruments necessary for the exercise of its powers and

14  functions, and provide and pay for advisory services and

15  technical assistance that may be necessary to carry out the

16  purposes of this section.

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

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

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

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

21  political subdivision, corporation, municipality, county, or

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

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

24  and may be expended above the amount appropriated by the

25  Legislature and in accordance with the terms and conditions of

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

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

28  promotional activities recommended to the commission. If the

29  Small Business and Economic Development Office is awarded a

30  grant or private contribution that requires a match, the

31

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  1  office shall receive a matching appropriation equal to 80

  2  percent of the grant or private contribution.

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

  4  contractor compliance with this section and the Florida Small

  5  and Minority Business Assistance Act of 1985.

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

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

  8  287.09431, and shall recertify such minority businesses not

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

10  recertified biannually annually by affidavit.

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

12  in identifying commodities, contractual services,

13  architectural and engineering services, and construction

14  contracts, except those architectural, engineering,

15  construction, or other related services or contracts subject

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

17  minority business enterprises. Minority business enterprise

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

19  private or nonprofit entity that is contracting with the state

20  during the current fiscal year; except for the state

21  university construction program, which must be based upon

22  public education capital outlay projections for the subsequent

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

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

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

26  percent on of the moneys actually expended for architectural

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

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

29  the moneys actually expended for contractual services during

30  the previous fiscal year, except for the state university

31  construction program which shall be based upon public

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  1  education capital outlay projections for the subsequent fiscal

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

  3  for the purpose of entering into contracts with certified

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

  5  approved joint ventures or mentor programs for the purpose of

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

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

  8  adjusted to reflect such reductions. The overall spending goal

  9  for each industry category shall be subdivided as follows:

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

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

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

13  6.4-11 11 percent for American women.

14         b.  For architectural and engineering contracts: 2.6

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

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

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

18  women.

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

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

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

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

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

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

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

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

27         2.  To develop procedures to evaluate the performance

28  of state employees in meeting or exceeding the established

29  percentage goals. Additionally, to develop procedures to

30  establish dollar goals, by procurement category, for each

31  agency which range in value from no less than 98 percent of

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  1  the overall spending goal and no more than 105 percent above

  2  the overall spending goal as applied to each agency's total

  3  spending with any private or nonprofit entity that is

  4  contracting or doing business with the state during the

  5  current fiscal year; except for the state university

  6  construction program, which must be based upon public

  7  education capital outlay projections for the subsequent fiscal

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

  9         3.2.  For the purposes of commodities contracts for the

10  purchase of equipment to be used in the construction and

11  maintenance of state transportation facilities involving the

12  Department of Transportation, "minority business enterprise"

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

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

15  ensure that the goals established under this paragraph for

16  contracting with certified minority business enterprises are

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

18  Business and Economic Development Advocacy and Assistance

19  Office, shall make recommendations to the Legislature on

20  revisions to the goals, based on an updated statistical

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

22  shall be based on statistical data indicating the availability

23  of and disparity in the use of minority businesses contracting

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

25  disparity study must be presented to the Legislature no later

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

27  achieving stated goals and to revise or modify program

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

29  specific areas, including procurement category, ethnic group,

30  geographic region, or agency, when the Legislature determines

31  that there is no disparity in the participation of minority

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  1  business enterprises based on the disparity analysis, the

  2  minority business program must be discontinued, in those areas

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

  4  Governor shall designate a Minority Business Ombudsman to

  5  monitor progress, receive complaints, and report progress to

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

  7  the House of Representatives, by November 1 of each year, in

  8  those areas in which the minority business enterprise programs

  9  are phased out or repealed to determine whether disparities or

10  discrimination is a recurring problem. The minority business

11  enterprise program may be reestablished in phased-out

12  programs, when disparities in minority business utilization

13  reoccurs. This section expires July 1, 2006; however, the

14  Minority Business Ombudsman shall continue to monitor, receive

15  complaints, make recommendations, and report findings to the

16  Governor. 1996

17         4.3.  In determining the base amounts for assessing

18  compliance with this paragraph, the Small Minority Business

19  and Economic Development Advocacy and Assistance Office may

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

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

22  are not limited to, guidelines for calculation of base

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

24  deadline for approval of the base amounts by the Small

25  Minority Business and Economic Development Advocacy and

26  Assistance Office, and procedures for adjusting the base

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

28  216.221.

29         5.4.  To determine guidelines for the use of price

30  preferences, weighted preference formulas, individual project

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

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  1  industry or trade, to increase the participation of minority

  2  businesses in state contracting. These guidelines shall

  3  include consideration of:

  4         a.  Size and complexity of the project.

  5         b.  The concentration of transactions with minority

  6  business enterprises for the commodity or contractual services

  7  in question in prior agency contracting.

  8         c.  The specificity and definition of work allocated to

  9  participating minority business enterprises.

10         d.  The capacity of participating minority business

11  enterprises to complete the tasks identified in the project.

12         e.  The available pool of minority business enterprises

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

14  approved joint venture that serves as the prime contractor.

15         (f)  The geographical location of certified minority

16  business enterprises where location is a relevant factor.

17         6.5.  To establish programs, adopt rules, establish

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

19  followed by the participants of the mentor program and

20  determine guidelines for use of joint ventures to meet

21  minority business enterprises spending goals. For purposes of

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

23  more business concerns to carry out a single business

24  enterprise for profit, for which purpose they combine their

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

26  guidelines shall allow transactions with joint ventures to be

27  eligible for credit against the minority business enterprise

28  goals of an agency when the contracting joint venture

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

30  a certified minority business enterprise as defined in s.

31  288.703, and that such partner is responsible for a clearly

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

  2  demonstrate a plan to enhance the certified minority business

  3  enterprises' profitability, management skills, financial

  4  standing, and marketplace position shares in the ownership,

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

  6  the joint venture. Such demonstration shall be by verifiable

  7  documents and sworn statements and may be reviewed by the

  8  Small Minority Business and Economic Development Advocacy and

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

10  submitted. An agency may count toward its minority business

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

12  contract equal to the percentage of the ownership and control

13  held by the qualifying certified minority business partners in

14  the business relationship contracting joint venture, so long

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

16  office.

17         (r)  Mentor programs must be established for businesses

18  to qualify to bid on state projects.

19         1.  A mentor must possess all applicable state and

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

21  mentor shall provide to a certified minority business

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

23  practical training and guidance relating to the conduct of the

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

25  and submitted for review to the Small Business and Economic

26  Development Office.

27         2.  Mentor requirements apply only to businesses that

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

29  want certified minority business enterprise participation

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

31

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  1  relationship, must be a certified minority business

  2  enterprise.

  3         3.  Mentors who mentor certified minority business

  4  enterprises or small business enterprise located in an area

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

  6  receive credit for meeting minority business enterprise

  7  contracting goals.

  8         4.  A protege under the program shall participate by

  9  being available to benefit from information and expertise

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

11  must be a certified minority business enterprise.

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

13  the Small Business and Economic Development Office, for

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

15  relationship for minority business enterprise participation

16  credit.

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

18  the use of certified minority business enterprises in state

19  contracting. This system shall maintain information and

20  statistics on certified minority business enterprise

21  participation, awards, dollar volume of expenditures and

22  agency goals, and other appropriate types of information to

23  analyze progress in the access of certified minority business

24  enterprises to state contracts and to monitor agency

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

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

27  state contracting, including state negotiated agreement price

28  schedule contracts and state term contracts, by dollar amount

29  and by number of subcontracts and the identification of the

30  utilization of certified minority business enterprises as

31  prime contractors and subcontractors by dollar amounts of

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  1  contracts and subcontracts, number of contracts and

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

  3  circumstances that significantly affected the performance of

  4  subcontractors. Agencies shall report their compliance with

  5  the requirements of this reporting system at least annually

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

  7  with the office in establishing this reporting system. Except

  8  in construction contracting, all agencies shall review

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

10  287.017 to determine if such contracts could be divided into

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

12  when economical, offer such smaller contracts to encourage

13  minority participation.

14         2.  To report agency compliance with the provisions of

15  subparagraph 1. for the preceding fiscal year to the Governor

16  and Cabinet, the President of the Senate, and the Speaker of

17  the House of Representatives, and the secretary of the

18  Department of Labor and Employment Security on or before

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

20  minimum, the following:

21         a.  Total expenditures of each agency by industry.

22         b.  The dollar amount and percentage of contracts

23  awarded to certified minority business enterprises by each

24  state agency.

25         c.  The dollar amount and percentage of contracts

26  awarded indirectly to certified minority business enterprises

27  as subcontractors by each state agency.

28         d.  The total dollar amount and percentage of contracts

29  awarded to certified minority business enterprises, whether

30  directly or indirectly, as subcontractors.

31

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  1         e.  A statement and assessment of good faith efforts

  2  taken by each state agency.

  3         f.  A status report of agency compliance with

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

  5  and Economic Development Enterprise Office.

  6         (9)(5)(a)  Each agency shall, at the time the

  7  specifications or designs are developed or contract sizing is

  8  determined for any proposed procurement costing in excess of

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

10  the Small Minority Business and Economic Development Advocacy

11  and Assistance Office of the proposed procurement and any

12  determination on the designs of specifications of the proposed

13  procurement that impose requirements on prospective vendors,

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

15  except that this provision shall not apply to emergency

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

17  for any other procedural requirements.

18         (b)  If the Small Minority Business and Economic

19  Development Advocacy and Assistance Office determines that the

20  proposed procurement will not likely allow opportunities for

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

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

23  propose the implementation of minority business enterprise

24  utilization provisions or submit alternative procurement

25  methods that would significantly increase minority business

26  enterprise contracting opportunities.

27         (c)  Whenever the agency and the Small Minority

28  Business and Economic Development Advocacy and Assistance

29  Office disagree, the matter shall be submitted for

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

31

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  1  official designated pursuant to this section as liaison for

  2  minority business enterprise issues.

  3         (d)  Should the proposed procurement proceed to

  4  competitive bidding, the office is hereby granted standing to

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

  6  contract award in competitive bidding for contractual services

  7  and construction contracts that fail to include minority

  8  business enterprise participation, if any responding bidder

  9  has demonstrated the ability to achieve any level of

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

11  reasonable and economical opportunity to reserve a contract,

12  statewide or district level, for minority participation was

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

14  preference for minority participation. The bond requirement

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

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

17  minority participation has not made a good faith effort when

18  other bidders offer minority participation of firms listed as

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

20  locality or statewide to complete the project.

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

22  Minority Business and Economic Development Advocacy and

23  Assistance Office determines that an agency has established a

24  work plan to allow advance consultation and planning with

25  minority business enterprises and where such plan clearly

26  demonstrates:

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

28  minority business enterprises.

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

30  experience by minority business enterprises in the agency's

31  contract decisionmaking process.

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  1         3.  A high quality of agency monitoring and enforcement

  2  of internal implementation of minority business utilization

  3  provisions.

  4         4.  A high quality of agency monitoring and enforcement

  5  of contractor utilization of minority business enterprises,

  6  especially tracking subcontractor data, and ensuring the

  7  integrity of subcontractor reporting.

  8         5.  A high quality of agency outreach, agency

  9  networking of major vendors with minority vendors, and

10  innovation in techniques to improve utilization of minority

11  business enterprises.

12         6.  Substantial commitment, sensitivity, and proactive

13  attitude by the agency head and among the agency minority

14  business staff.

15         (6)  Each state agency shall coordinate its minority

16  business enterprise procurement activities with the Small

17  Minority Business and Economic Development Advocacy and

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

19         (a)  Adopt a minority business enterprise utilization

20  plan for review and approval by the Small Minority Business

21  and Economic Development Advocacy and Assistance Office which

22  should require meaningful and useful methods to attain the

23  legislative intent in assisting minority business enterprises.

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

25  a minority enterprise assistance officer, responsible for

26  overseeing the agency's minority business utilization

27  activities, and who is not also charged with purchasing

28  responsibility. A senior-level agency employee and agency

29  purchasing officials shall be accountable to the agency head

30  for the agency's minority business utilization performance.

31  The Small Minority Business and Economic Development Advocacy

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  1  and Assistance Office shall advise each agency on compliance

  2  performance.

  3         (c)  If an agency deviates significantly from its

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

  5  years, the Small Minority Business and Economic Development

  6  Advocacy and Assistance Office may review any and all

  7  solicitations and contract awards of the agency as deemed

  8  necessary until such time as the agency meets its utilization

  9  plan.

10         Section 10.  Section 287.0946, Florida Statutes, is

11  created to read:

12         287.0946  Small business and minority business

13  enterprise linked-deposit program.--

14         (1)  The Commission on Small Business and Economic

15  Development may create a small and minority business

16  enterprise linked-deposit program to encourage financial

17  institutions to increase the volume of loans made to small

18  business enterprises and minority business enterprises to

19  encourage the development of small and minority businesses.

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

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

22  Business and Economic Development.

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

24  enterprise that is certified by the statewide reciprocal

25  certification process or a small business enterprise certified

26  by the Small Business and Economic Development Office under

27  ss. 287.0942 and 287.088.

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

29  Treasurer.

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

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

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  1  minority business enterprise linked-deposit program, $15

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

  3  deposit in participating financial institutions, except that

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

  5  financial institution participating in the small and minority

  6  business linked-deposit program.

  7         (4)  Participating financial institutions must be

  8  qualified public depositories under chapter 280 and must be

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

10  competitive selection program for certificates of deposit. A

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

12  United States Treasury securities with a maturity matching the

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

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

15  and minority business enterprise linked-deposit program under

16  this section.

17         (5)  Participating financial institutions must provide

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

19  deposited within the financial institution as a result of

20  participating in the small and minority business enterprise

21  linked-deposit program. The participating financial

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

23  loans to eligible borrowers for working capital, contracts,

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

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

26  maximum amount of a loan provided under the minority business

27  linked-deposit program is $250,000.

28         (6)  At the recommendation of the Department of

29  Insurance, the Treasurer shall remove and competitively rebid

30  all program deposits at a participating financial institution

31  if a review of the participating financial institution's

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  1  record under the program demonstrates no improvements relative

  2  to the financial institution's preparticipation levels of

  3  lending to small and minority business enterprises.

  4         (7)  The Treasurer shall remove and competitively rebid

  5  all program deposits at a participating institution, if the

  6  participating financial institution ceases to be a qualified

  7  public depository under chapter 280.

  8         (8)  The Small Business and Economic Development

  9  Office, along with assistance from the Department of Banking

10  and Finance, shall compile funding data and provide an annual

11  report to the Governor, the President of the Senate, and the

12  Speaker of the House of Representatives, on February 1 of each

13  year which contains:

14         (a)  The name of the participating financial

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

16  and minority businesses under the small and minority business

17  enterprise linked-deposit program during the previous calendar

18  year.

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

20  business loans made by each participating financial

21  institution under the program during the previous calendar

22  year.

23         (c)  The number of completed small and minority

24  business loan applications that were denied or disapproved

25  during the previous calendar year by each financial

26  institution participating under the program.

27         (d)  Recommendations for continuation, expansion,

28  improvement, or expiration of the minority business

29  linked-deposit program in its annual report to the

30  Legislature.

31

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

  2  date the designated short-term treasury deposits shall be

  3  returned to the Treasurer.

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

  5  290.0075, Florida Statutes, are amended to read:

  6         290.0075  Enterprise zone linked deposit program.--

  7         (6)  The Department of Banking and Finance shall

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

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

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

11  March February 1 of each year which contains:

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

13  businesses under this program during the previous calendar

14  year.

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

16  made by each selected financial institution under this program

17  during the previous calendar year.

18         (c)  The number of completed small business loan

19  applications that were denied or disapproved during the

20  previous calendar year by each selected financial institution

21  under this program.

22         (d)  Recommendations concerning the continuation,

23  expansion, improvement, or termination of this program.

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

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

26  the designated short-term treasury deposits shall be returned

27  to the Treasurer.

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

29  Statutes, is amended to read:

30         17.11  To report disbursements made.--

31

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

  2  from the state automated management accounting subsystem no

  3  less than quarterly the disbursements which agencies made to

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

  5  Business Assistance Act of 1985; to certified minority

  6  business enterprises in the aggregate; and to certified

  7  minority business enterprises broken down into categories of

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

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

10  Small Minority Business and Economic Development Advocacy and

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

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

13  shall be responsible for the accuracy of information entered

14  into the state automated management accounting subsystem for

15  use in this reporting.

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

17  255.102, Florida Statutes, 1998 Supplement, are amended to

18  read:

19         255.102  Contractor utilization of minority business

20  enterprises.--

21         (1)  Agencies shall consider the use of price

22  preferences, weighted preference formulas, or other

23  preferences for construction contracts, as determined

24  appropriate by the Small Minority Business and Economic

25  Development Advocacy and Assistance Office in collaboration

26  with the Department of Management Services to increase

27  minority participation.

28         (2)  The Small Minority Business and Economic

29  Development Advocacy and Assistance Office, in collaboration

30  with the Department of Management Services and the State

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

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

  2  minority participation goals established for competitively

  3  awarded building and construction projects. Pro forma efforts

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

  5  considered by the state agency in determining whether a

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

  7  be limited to:

  8         (a)  Whether the contractor attended any

  9  presolicitation or prebid meetings that were scheduled by the

10  agency to inform minority business enterprises of contracting

11  and subcontracting opportunities.

12         (b)  Whether the contractor advertised in general

13  circulation, trade association, or minority-focus media

14  concerning the subcontracting opportunities.

15         (c)  Whether the contractor provided written notice to

16  all relevant subcontractors listed on the minority vendor list

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

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

19  interest in the contract was being solicited in sufficient

20  time to allow the minority business enterprises to participate

21  effectively.

22         (d)  Whether the contractor followed up initial

23  solicitations of interest by contacting minority business

24  enterprises, the Small Minority Business and Economic

25  Development Advocacy and Assistance Office, or minority

26  persons who responded and provided detailed information about

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

28  project manager, subcontractor bonding, if any, payment

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

30  contractor to enhance minority business enterprise

31  participation.

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  1         (e)  Whether the contractor selected portions of the

  2  work to be performed by minority business enterprises in order

  3  to increase the likelihood of meeting the minority business

  4  enterprise procurement goals, including, where appropriate,

  5  breaking down contracts into economically feasible units to

  6  facilitate minority business enterprise participation under

  7  reasonable and economical conditions of performance.

  8         (f)  Whether the contractor provided the Small Minority

  9  Business and Economic Development Advocacy and Assistance

10  Office as well as interested minority business enterprises or

11  minority persons with adequate information about the plans,

12  specifications, and requirements of the contract or the

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

14  information was provided to other subcontractors.

15         (g)  Whether the contractor negotiated in good faith

16  with interested minority business enterprises or minority

17  persons, not rejecting minority business enterprises or

18  minority persons as unqualified without sound reasons based on

19  a thorough investigation of their capabilities or imposing

20  implausible conditions of performance on the contract.

21         (h)  Whether the contractor diligently seeks to replace

22  a minority business enterprise subcontractor that is unable to

23  perform successfully with another minority business

24  enterprise.

25         (i)  Whether the contractor effectively used the

26  services of available minority community organizations;

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

28  minority business assistance offices; and other organizations

29  that provide assistance in the recruitment and placement of

30  minority business enterprises or minority persons.

31

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

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

  3  287.042, Florida Statutes, 1998 Supplement, are amended to

  4  read:

  5         287.042  Powers, duties, and functions.--The department

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

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

  8  to negotiate and execute purchasing agreements and contracts

  9  for commodities and contractual services under which state

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

11  under which a federal, county, municipality, institutions

12  qualified pursuant to s. 240.605, private nonprofit community

13  transportation coordinator designated pursuant to chapter 427,

14  while conducting business related solely to the Commission for

15  the Transportation Disadvantaged, or other local public agency

16  may make purchases. The department may restrict purchases from

17  some term contracts to state agencies only for those term

18  contracts where the inclusion of other governmental entities

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

20  facilities located in this state. In such planning or

21  purchasing the Small Minority Business and Economic

22  Development Advocacy and Assistance Office may monitor to

23  ensure that opportunities are afforded for contracting with

24  minority business enterprises. The department, for state term

25  contracts, and all agencies, for multiyear contractual

26  services or term contracts, shall explore reasonable and

27  economical means to utilize certified minority business

28  enterprises. Purchases by any county, municipality, private

29  nonprofit community transportation coordinator designated

30  pursuant to chapter 427, while conducting business related

31  solely to the Commission for the Transportation Disadvantaged,

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

  2  purchasing contracts, and purchases, from the corporation

  3  operating the correctional work programs, of products or

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

  5  the competitive sealed bid requirements otherwise applying to

  6  their purchases.

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

  8  decision or intended decision pertaining to contracts

  9  administered by the department or a state agency pursuant to

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

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

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

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

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

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

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

17  in the administrative hearing in which the action is brought

18  and in any subsequent appellate court proceeding. For protests

19  of decisions or intended decisions of the department

20  pertaining to agencies' requests for approval of exceptional

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

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

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

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

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

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

27  hearing process and any appellate court proceedings, the

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

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

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

31  filed by the Small Minority Business and Economic Development

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

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

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

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

  5  shall recover from the agency all costs and charges which

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

  7  attorney's fees.

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

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

10  agencies in acquiring commodities and contractual services,

11  which shall include, but not be limited to:

12         (b)  Development of procedures for the releasing of

13  requests for proposals and invitations to bid, which

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

15  in the Florida Administrative Weekly or on the Florida

16  Communities Network of notice for requests for proposals at

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

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

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

20  agency may waive the requirement for notice in the Florida

21  Administrative Weekly or on the Florida Communities Network.

22  Notice of the request for proposals shall be mailed to

23  prospective offerors at least 28 calendar days prior to the

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

25  bid shall be mailed to prospective bidders at least 10

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

27  Small Minority Business and Economic Development Advocacy and

28  Assistance Office may consult with agencies regarding the

29  development of bid distribution procedures to ensure that

30  maximum distribution is afforded to certified minority

31  business enterprises as defined in s. 288.703.

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  1         (c)  Development of procedures for the receipt and

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

  3  shall provide the Small Minority Business and Economic

  4  Development Advocacy and Assistance Office an opportunity to

  5  monitor and ensure that the contract award is consistent with

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

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

  8  bid responses within standard timelines.

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

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

11  Supplement, are amended to read:

12         287.057  Procurement of commodities or contractual

13  services.--

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

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

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

17  all commodity and contractual services purchases in excess of

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

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

20  competitive sealed bid or competitive sealed proposal

21  tabulations. The Small Minority Business and Economic

22  Development Advocacy and Assistance Office may also request

23  from the agencies any information submitted to the department

24  pursuant to this subsection.

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

26  business enterprise procurement goals set forth in s.

27  287.0945, an agency may reserve any contract for competitive

28  sealed bidding only among certified minority business

29  enterprises. Agencies shall review all their contracts each

30  fiscal year and shall determine which contracts may be

31  reserved for bidding only among certified minority business

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

  2  determined, by reasonable and objective means, before the

  3  invitation to bid that there are capable, qualified certified

  4  minority business enterprises available to bid on a contract

  5  to provide for effective competition. The Small Minority

  6  Business and Economic Development Advocacy and Assistance

  7  Office shall consult with any agency in reaching such

  8  determination when deemed appropriate.

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

10  287.0947, Florida Statutes, are amended to read:

11         287.0947  Florida Council on Small and Minority

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

13         (1)  On or after October 1, 1996, the executive

14  administrator of the Commission on Small Business and Economic

15  Development secretary of the Department of Labor and

16  Employment Security may create the Florida Advisory Council on

17  Small and Minority Business Development with the purpose of

18  advising and assisting the executive administrator secretary

19  in carrying out the executive administrator's secretary's

20  duties with respect to minority businesses and economic and

21  business development. It is the intent of the Legislature that

22  the membership of such council include practitioners,

23  laypersons, financiers, and others with business development

24  experience who can provide invaluable insight and expertise

25  for this state in the diversification of its markets and

26  networking of business opportunities. The council shall

27  initially consist of 19 persons, each of whom is or has been

28  actively engaged in small and minority business development,

29  either in private industry, in governmental service, or as a

30  scholar of recognized achievement in the study of such

31  matters. Initially, the council shall consist of members

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  1  representing all regions of the state and shall include at

  2  least one member from each group identified within the

  3  definition of "minority person" in s. 288.703(3), considering

  4  also gender and nationality subgroups, and shall consist of

  5  the following:

  6         (a)  Four members consisting of representatives of

  7  local and federal small and minority business assistance

  8  programs or community development programs.

  9         (b)  Eight members composed of representatives of the

10  minority private business sector, including certified minority

11  business enterprises and minority supplier development

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

13  four shall be minority persons.

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

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

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

17  government.

18         (d)  Two representatives from the banking and insurance

19  industry.

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

21  representing the construction and commodities industries.

22         (f)  The chairperson of the Florida Black Business

23  Investment Board or the chairperson's designee.

24

25  A candidate for appointment may be considered if eligible to

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

27  if otherwise qualified under the criteria above. Vacancies may

28  be filled by appointment of the executive administrator

29  secretary, in the manner of the original appointment.

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

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

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

  2  reviewing issues and emerging topics relating to small and

  3  minority business economic development; studying the ability

  4  of financial markets and institutions to meet small business

  5  credit needs and determining the impact of government demands

  6  on credit for small businesses; assessing the implementation

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

  8  comprehensive plan, as it relates to small and minority

  9  businesses; assessing the reasonableness and effectiveness of

10  efforts by any state agency or by all state agencies

11  collectively to assist minority business enterprises; and

12  advising the Governor, the executive administrator secretary,

13  and the Legislature on matters relating to small and minority

14  business development which are of importance to the

15  international strategic planning and activities of this state.

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

17  shall present an annual report to the executive administrator

18  secretary that sets forth in appropriate detail the business

19  transacted by the council during the year and any

20  recommendations to the executive administrator secretary,

21  including those to improve business opportunities for small

22  and minority business enterprises.

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

24  288.703, Florida Statutes, 1998 Supplement, are amended to

25  read:

26         288.703  Definitions.--As used in this act, the

27  following words and terms shall have the following meanings

28  unless the content shall indicate another meaning or intent:

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

30  Small Business and Economic Development Department of Labor

31  and Employment Security.

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

  2  responsibilities include coordinating with the Small Minority

  3  Business and Economic Development Advocacy and Assistance

  4  Office for the interests of and providing assistance to small

  5  and minority business enterprises in dealing with governmental

  6  agencies and in developing proposals for changes in state

  7  agency rules.

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

  9  executive administrator of the Commission on Small Business

10  and Economic Development secretary of the Department of Labor

11  and Employment Security.

12         Section 18.  This act shall take effect July 1, 1999.

13

14            *****************************************

15                          SENATE SUMMARY

16    In sections relating to property and services
      procurement:
17         (1)  Requires the Board of Regents and the university
    presidents to comply with the minority business enterprise
18  program.
           (2)  Provides for price preferences in historically
19  underutilized business zones.
           (3)  Creates a small business enterprise program with
20  incentives, goals, and size standards.
           (4)  Prohibits government employees from discriminating
21  in contracting and procurement activities.
           (5)  Revises certification criteria.
22         (6)  Provides for flexibility in statewide reciprocal
    certification agreements.
23         (7)  Creates the Commission on Small Business and
    Economic Development.
24         (8)  Renames the Minority Business Advocacy and
    Assistance Office as the Small Business and Economic
25  Development Office.
           (9)  Revises requirements for expenditure percentages
26  for specified minorities.
           (10)  Provides for the appointment of a Minority
27  Business Ombudsman.
           (11)  Creates a mentor and protege program.
28         (12)  Authorizes a linked-deposit program for minority
    and small business enterprises.
29         (13)  Extends the expiration date of the
    enterprise-zone linked-deposit program.
30

31

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