Senate Bill sb0386e1

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  1                      A bill to be entitled

  2         An act relating to the Florida Black Business

  3         Investment Board, Inc.; amending s. 288.707,

  4         F.S.; revising legislative findings regarding

  5         the creation and growth of black business

  6         enterprises; redefining the term "black

  7         business enterprise"; providing that the board

  8         shall be a not-for-profit corporation and not

  9         an entity of state government; revising

10         provisions relating to appointment and number

11         of board members, compensation of board

12         members, the president and employees, and

13         financial disclosure by board members;

14         providing for board meetings; authorizing the

15         board to appoint at-large members; creating s.

16         288.7075, F.S.; amending s. 288.708, F.S.;

17         revising provisions relating to appointment of

18         the executive director; renaming the position

19         of "executive director" as "president";

20         providing for the appointment and compensation

21         of the president; providing for delegation of

22         powers and responsibilities to the president;

23         prescribing the corporation's responsibilities

24         regarding use of funds; providing requirements

25         regarding employees' compensation; amending s.

26         288.709, F.S.; replacing references to board

27         rulemaking with references to the adoption of

28         policies; eliminating provisions related to the

29         authority of the corporation to acquire and

30         sell property; amending s. 288.7091, F.S.;

31         revising provisions relating to duties of the


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  1         corporation regarding developing memoranda of

  2         understanding with certain entities and

  3         increasing the number of black business

  4         enterprises in construction projects; requiring

  5         the corporation to ensure that certain

  6         appropriations are distributed properly, to

  7         conduct certain economic development

  8         activities, and to facilitate creation of black

  9         business investment corporations; creating s.

10         288.7092, F.S.; providing intent regarding

11         operation of the corporation and return on

12         investment; defining the state's operating

13         investment in the corporation; directing the

14         board to adopt an annual operating budget;

15         providing requirements regarding private-sector

16         support; providing requirements regarding

17         corporate compliance with performance measures;

18         providing for a report; requiring that the

19         board hire a private accounting firm or

20         economic analysis firm and providing its

21         duties; amending ss. 288.711 and 288.712, F.S.;

22         conforming provisions; amending s. 288.714,

23         F.S.; revising the list of persons to whom the

24         corporation's annual report is submitted;

25         revising the due date for such report;

26         clarifying references to ss. 288.707-288.714,

27         F.S.; establishing a program to lease state

28         employees to the Black Business Investment

29         Board, Inc.; prescribing duties of the

30         Department of Management Services related to

31         such leasing program; providing terms and


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  1         conditions of such leasing program; amending s.

  2         288.9015, F.S.; revising duties of Enterprise

  3         Florida, Inc., relating to small and minority

  4         businesses; directing Enterprise Florida, Inc.,

  5         to contract with the Black Business Investment

  6         Board, Inc., under certain conditions;

  7         requiring the Black Business Investment Board,

  8         Inc., to complete a report on the inclusion of

  9         all minorities in the activities of the board

10         and the black business investment corporations;

11         providing an effective date.

12

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

14

15         Section 1.  Section 288.707, Florida Statutes, is

16  amended to read:

17         288.707  Florida Black Business Investment Board,

18  Inc.--

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

20  Florida will be served by the creation and growth of black

21  business enterprises by:

22         (a)  Establishing a partnership between the public

23  sector and the private sector which seeks to leverage the

24  provision of state funds with funds and other resources from

25  private-sector businesses and other nonstate sources;

26         (b)(a)  Increasing opportunities for employment of

27  blacks, as well as the population in general;

28         (c)(b)  Providing role models and establishing business

29  networks for the benefit of future generations of aspiring

30  black entrepreneurs;

31


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  1         (d)(c)  Strengthening the economy of the state by

  2  increasing the number of qualified black business enterprises,

  3  which in turn will increase competition in the marketplace and

  4  improve the welfare of economically depressed neighborhoods;

  5  and

  6         (e)(d)  Taking measures to increase access of black

  7  businesses to both debt and equity capital.

  8         (2)  For the purposes of ss. 288.707-288.714 ss. 9-21,

  9  chapter 85-104, Laws of Florida:

10         (a)  "Black business enterprise" means any business

11  concern that which is organized to engage in commercial

12  transactions and that which is at least 51 percent owned by

13  one or more African-Americans black Americans as defined in s.

14  288.703 and whose management and daily operations are

15  controlled by such persons.

16         (b)  "Black business investment corporation" means a

17  subsidiary of a financial institution or a consortium of

18  financial institutions investing in, or lending to, black

19  business enterprises.

20         (c)  "Consortium" means two or more financial

21  institutions that which jointly negotiate and agree to provide

22  assistance to black business enterprises as provided in ss.

23  288.707-288.714 ss. 9-21, chapter 85-104, Laws of Florida.

24         (3)  There is hereby created a not-for-profit

25  corporation within the Office of Tourism, Trade, and Economic

26  Development a body politic and corporate to be known as the

27  Florida Black Business Investment Board, Inc., hereinafter

28  referred to as the "corporation," "board." which shall be

29  registered, incorporated, organized, and operated in

30  compliance with chapter 617 and which is not a unit or entity

31  of state government. The board is hereby constituted a public


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  1  instrumentality, and the exercise by the board of the powers

  2  conferred by ss. 9-21, chapter 85-104, Laws of Florida, shall

  3  be deemed to be the performance of an essential governmental

  4  function.

  5         (a)  The board of the corporation shall consist of the

  6  following members:

  7         1.  Six seven members appointed by the Governor and

  8  subject to confirmation by the Senate, who must six of whom

  9  shall be experienced in investment finance and business

10  development, one of whom must be a member of a black business

11  investment corporation.

12         2.  One member from the private sector appointed by the

13  President of the Senate, who must be experienced in investment

14  finance and business development and who shall serve a term of

15  2 years.

16         3.  One member from the private sector appointed by the

17  Speaker of the House of Representatives, who must be

18  experienced in investment finance and business development and

19  who shall serve a term of 2 years.

20         4.  Three representatives of black business investment

21  corporations, who must be selected from among and by the

22  chairmen of the black business investment corporations. A

23  representative from a black business investment corporation

24  shall serve for a term of 2 years but is eligible for

25  reappointment on a rotating basis with other representatives

26  from black business investment corporations.

27         5.  The vice chairman of Enterprise Florida, Inc., or

28  his or her designee, who shall be an ex officio, nonvoting

29  member, and who shall provide information, advice, and

30  guidance designed to enhance the coordination of activities of

31  Enterprise Florida, Inc., and the board.


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  1         6.  The chair of the Florida Development Finance

  2  Corporation, created pursuant to s. 288.9604, who shall be an

  3  ex officio, nonvoting member of the corporation.

  4         (b)  Members appointed by the Governor shall serve

  5  terms of 4 years, except that in making the initial

  6  appointments, the Governor shall appoint two members to serve

  7  for terms one member to serve for a term of 1 year, two

  8  members to serve for terms of 2 years, two members to serve

  9  for terms of 3 years, and two members to serve for terms of 4

10  years.

11         (c)  Any person appointed to fill a vacancy on the

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

13  only the unexpired term.  Any member shall be eligible for

14  reappointment.

15         (d)  The Governor shall appoint the chairperson who

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

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

18  members as vice chairperson and shall designate a

19  secretary-treasurer who need not be a member of the board.

20  The secretary-treasurer shall keep a record of the proceedings

21  of the board and shall be the custodian of all books,

22  documents, and papers filed with the board, of the minute

23  books of the board, and of its official seal.  A majority of

24  the members of the board shall constitute a quorum.

25         (e)  The board shall meet at least four times each

26  year, upon the call of the chairperson or the vice chairperson

27  or at the request of a majority of the membership. A majority

28  of the total number of all members fixed by paragraphs (a) and

29  (h) shall constitute a quorum. The board may take official

30  action by a majority vote of the members present at any

31  meeting at which a quorum is present.


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  1         (f)(e)  Members of the board shall serve without

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

  3  other board employees may be reimbursed for all reasonable,

  4  necessary, and actual expenses as determined by the board

  5  shall be reimbursed for per diem and travel expenses in

  6  accordance with s. 112.061.

  7         (g)(f)  Each member of the board who is not otherwise

  8  required to file financial disclosure pursuant to s. 8, Art.

  9  II of the State Constitution or s. 112.3144 shall file full

10  and public disclosure of financial interests pursuant to s.

11  112.3145 at the times and places and in the same manner

12  required of elected constitutional officers under s. 8, Art.

13  II of the State Constitution and any law implementing s. 8,

14  Art. II of the State Constitution.

15         (h)  Notwithstanding paragraph (a), the board may by

16  resolution appoint two at-large members to the board from the

17  private sector, each of whom may serve a 1-year term. At-large

18  members shall have the powers and duties of other members of

19  the board, except that they may not serve on an executive

20  committee. An at-large member is eligible for reappointment

21  but may not vote on his or her own reappointment.

22         Section 2.  Section 288.708, Florida Statutes, is

23  amended to read:

24         288.708  President Executive director; employees.--

25         (1)  The president executive director of the

26  corporation board, who may also be designated as

27  secretary-treasurer, shall be appointed by the board and shall

28  serve at the pleasure of the board. The board shall establish

29  and adjust the compensation of the president. The president

30  executive director shall be the chief administrative and

31  operational officer of the corporation board and shall direct


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  1  and supervise administrative affairs and the general

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

  3  its president those powers and responsibilities it deems

  4  appropriate, except for appointment of the president. The

  5  president executive director:

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

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

  8  shall be authorized by the board;

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

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

11  other records and documents of the board and shall certify

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

13  corporation or board may rely upon such certification.

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

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

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

17  accordance with all applicable laws, bylaws, or contractual

18  requirements. An employee of the corporation may not receive

19  compensation for employment that exceeds the salary paid to

20  the Governor, unless the corporation and the employee have

21  executed a contract that prescribes specific and measurable

22  performance outcomes for the employee, the satisfaction of

23  which provides the basis for the award of incentive payments

24  that increase the employee's total compensation to a level

25  above the salary paid to the Governor. The executive director

26  and all employees of the board shall be exempt from the

27  provisions of part II of chapter 110, and the executive

28  director shall be subject to the provisions of part III of

29  chapter 110.

30         Section 3.  Section 288.709, Florida Statutes, is

31  amended to read:


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  1         288.709  Powers of the Florida Black Business

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

  3  necessary or convenient to carry out and effectuate the

  4  purposes and provisions of ss. 288.707-288.714 ss. 9-21,

  5  chapter 85-104, Laws of Florida, including, but not limited

  6  to, the power to:

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

  8  the conduct of its business and adopt policies rules pursuant

  9  to ss. 120.536(1) and 120.54 to implement the provisions of

10  law conferring duties upon it. However, any proposed bylaws or

11  policies rules affecting the operation or administration or

12  financial well-being of any of the black business investment

13  corporations must first be approved by a majority of the black

14  business investment corporations. Such bylaws shall provide

15  that the corporation is subject to the requirements of s. 24,

16  Art. I of the State Constitution and chapter 119 and s.

17  286.011.

18         (2)  Adopt an official seal.

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

20         (4)  Make and execute contracts and other instruments

21  necessary or convenient for the exercise of its power and

22  functions.

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

24  for its corporate purposes.

25         (6)  Enter into agreements or other transactions with

26  any federal, state, or local agency.

27         (7)  Encourage financial institutions to participate in

28  consortia for the purpose of investing in black business

29  enterprises.

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

31  purposes set forth in ss. 288.707-288.714 ss. 9-21, chapter


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  1  85-104, Laws of Florida, are disbursed on a statewide basis

  2  and are not concentrated in one geographical area.

  3         (9)  Acquire real property or any interest therein, by

  4  purchase or foreclosure, where such acquisition is necessary

  5  or appropriate to protect or secure any investment or loan in

  6  which the board has an interest; to sell, transfer, and convey

  7  any such property to a buyer without regard to the provisions

  8  of chapters 253 and 270; and, in the event that such sale,

  9  transfer, or conveyance cannot be effected with reasonable

10  promptness or at a reasonable price, to lease such property

11  for occupancy by eligible persons.

12         (9)(10)  Invest any funds held in reserves or sinking

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

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

15  s. 215.47; however provided, such investments will be made on

16  behalf of the board by the Office of State Treasurer or by

17  another trustee appointed for that purpose.

18         (10)(11)  Appear in its own behalf before boards,

19  commissions, departments, or other agencies of municipal,

20  county, state, or Federal Government.

21         (11)(12)  Procure insurance or require bond against any

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

23  such insurers as may be necessary or desirable.

24         (12)(13)  Receive and accept from any federal, state,

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

26  the purposes of ss. 288.707-288.714 ss. 9-21, chapter 85-104,

27  Laws of Florida, and to receive and accept contributions from

28  any source of either money, property, labor, or other things

29  of value, to be held, used, and applied for said purposes.

30         (13)(14)  Create, issue, and buy and sell stock,

31  evidences of indebtedness, and other capital participation


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  1  instruments; to hold such stock, evidences of indebtedness,

  2  and capital participation instruments; and to underwrite the

  3  creation of a capital market for these securities in a manner

  4  designed to enhance development of capital ownership in the

  5  target group.

  6         (14)(15)  Provide and pay for such advisory services

  7  and technical assistance as may be necessary or desirable to

  8  carry out the purposes of this act.

  9         (15)(16)  Engage in special programs to enhance the

10  development of black business enterprises as authorized by

11  this act.

12         (16)(17)  Promote black ownership of financial

13  institutions in Florida.

14         (17)(18)  Take, hold, and improve property, including

15  real property.

16         (18)(19)  Do any and all things necessary or convenient

17  to carry out the purposes of, and exercise the powers given

18  and granted in, ss. 288.707-288.714 ss. 9-21, chapter 85-104,

19  Laws of Florida, and exercise any other powers, rights, or

20  responsibilities of a corporation.

21         (19)  In addition to any indemnification available

22  under chapter 617, indemnify, and purchase and maintain

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

24  the corporation and its boards against any personal liability

25  or accountability by reason of actions taken while acting

26  within the scope of their authority.

27         (20)  Provide in its bylaws that upon the dissolution

28  of the corporation that all of its assets, after payment of

29  all legal debts and liabilities, revert to the State of

30  Florida.

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  1         Section 4.  Section 288.7091, Florida Statutes, is

  2  amended to read:

  3         288.7091  Duties of the Florida Black Business

  4  Investment Board, Inc.--The Florida Black Business Investment

  5  Board, Inc., shall:

  6         (1)  Establish certification criteria for black

  7  business investment corporations. Certification criteria shall

  8  include administrative capacity, fiduciary controls, and, in

  9  the case of existing black business investment corporations,

10  solvency and soundness of prior loan decisions;

11         (2)  Ensure that any appropriations by the Legislature

12  to the corporation on behalf of the black business investment

13  corporations are provided to the corporations in the manner

14  and amount prescribed by the Legislature;

15         (3)  Work with Enterprise Florida, Inc., and local

16  economic development organizations to promote the retention

17  and expansion of existing black business enterprises and to

18  promote the formation and recruitment of new black business

19  enterprises;

20         (4)(2)  Develop a memorandum of understanding with

21  Enterprise Florida, Inc., that outlines a strategy for

22  collaboration with the programs, activities, and committees or

23  similar units and boards of Enterprise Florida, Inc., which

24  memorandum of understanding shall provide for Enterprise

25  Florida, Inc., to contract with the corporation, where

26  practicable, for the delivery of economic development services

27  relating to black business enterprises;

28         (5)(3)  Include in the criteria for loan decisions,

29  occupational forecasting results set forth in s. 216.136(9)

30  which target high growth jobs;

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  1         (6)(4)  Facilitate the formation of black business

  2  investment corporations in communities that are not currently

  3  served by such corporations and establish, in communities that

  4  are not currently served by an existing black business

  5  investment corporation, memoranda of understanding with local

  6  financial institutions that will provide loan guarantees for

  7  loans to black business enterprises;

  8         (7)(5)  Develop memoranda of understanding with the

  9  Departments of Labor and Employment Security, Education,

10  Transportation, Community Affairs and Management Services, as

11  well as with Workforce Florida, Inc., and the Florida Board of

12  Education State Board of Regents, detailing efforts of common

13  interest and collaborations to expand black business

14  development;

15         (8)(6)  Intensify efforts to increase the number of

16  franchises owned by black businesses and the number of the

17  black business enterprises in construction and

18  construction-related projects, with emphasis on construction

19  projects financed by focusing on federal, state, or and local

20  governments government financed construction projects; and

21         (9)(7)  Annually, prepare a report detailing the

22  performance of each black business investment corporation,

23  addressing the number of jobs created and/or retained, success

24  and failure rates among loan recipients, and the amount of

25  funds leveraged from other sources.

26         (10)  Annually, provide for a financial audit as

27  defined in s. 11.45 of its accounts and records by an

28  independent certified public accountant. The audit report must

29  be filed within 12 months after the end of the fiscal year

30  with the Governor, the President of the Senate, the Speaker of

31  the House of Representatives, and the Auditor General.


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  1         Section 5.  Section 288.7092, Florida Statutes, is

  2  created to read:

  3         288.7092  Return on investment from activities of the

  4  corporation.--

  5         (1)  The public funds appropriated each year for the

  6  operation of the corporation are invested in this

  7  public-private partnership to enhance black business ownership

  8  and investments in Florida. This policy shall be the

  9  Legislature's priority consideration when reviewing the return

10  on investment for the corporation.

11         (2)  It is also the intent of the Legislature that the

12  corporation coordinate its operations with Enterprise Florida,

13  Inc., and with local economic development organizations to

14  maximize the state and local return on investment to create

15  jobs for Floridians.

16         (3)  It is further the intent of the Legislature to

17  maximize private-sector support in operating the corporation

18  as an endorsement of its value and as an enhancement of its

19  efforts.

20         (4)(a)  The state's operating investment in the

21  corporation is the budget contracted by the Office of Tourism,

22  Trade, and Economic Development to the corporation, less

23  funding that is directed by the Legislature to be

24  subcontracted to a specific recipient.

25         (b)  The board shall adopt for each upcoming fiscal

26  year an operating budget for the organization which specifies

27  the intended uses of the state's operating investment, other

28  sources of income, and a plan for securing private-sector

29  support to the corporation. Each fiscal year, private-sector

30  support to the corporation shall be as follows: no less than

31  50 percent of the state's investment by July 1, 2003; no less


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  1  than 60 percent of the state's investment by July 1, 2004; no

  2  less than 70 percent of the state's investment by July 1,

  3  2005; no less than 80 percent of the state's investment by

  4  July 1, 2006; and no less than 100 percent of the state's

  5  investment by July 1, 2007.

  6         (5)  Private-sector support in operating the

  7  corporation includes:

  8         (a)  Cash given directly to the corporation for its

  9  operating budget.

10         (b)  Cash jointly raised by the corporation and a local

11  economic development organization, a group of such

12  organizations, or a statewide business organization that

13  supports collaborative projects.

14         (c)  Cash generated by products or services of the

15  corporation.

16         (d)  In-kind contributions directly to the corporation,

17  including private-sector equipment contributed as part of

18  technical assistance; goods and services, including time

19  donated by loan officers, advertising or marketing support,

20  and items used to promote the corporation; business

21  expenditures; business services provided; business support;

22  and other business contributions that augment the operations,

23  program, activities, or assets of the corporation, including,

24  but not limited to, an individual's time and expertise,

25  sponsored publications, private-sector staff services, payment

26  for advertising placements, sponsorship of events, sponsored

27  or joint research, discounts on leases or purchases, mission

28  or program sponsorship, copayments, stock, warrants,

29  royalties, or other private resources dedicated to the

30  corporation, low-interest loans, participations, investment

31


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  1  income, equity investments, and the economic impact of the

  2  corporation's investments and job creation and retention.

  3         (6)  The corporation shall fully comply with the

  4  performance measures, standards, and sanctions in its

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

  6  Development. The office shall ensure, to the maximum extent

  7  possible, that the contract performance measures are

  8  consistent with performance measures that the office is

  9  required to develop and track under performance-based program

10  budgeting.

11         (7)  As part of the annual report required under s.

12  288.714, the board of the corporation shall provide the

13  Legislature with information quantifying the public's return

14  on investment.

15         (8)  The corporation, in consultation with the Office

16  of Program Policy Analysis and Government Accountability,

17  shall hire a private accounting firm or economic analysis firm

18  to develop the methodology for establishing and reporting

19  return on investment and in-kind contributions as described in

20  this section. The Office of Program Policy Analysis and

21  Government Accountability shall review and offer feedback on

22  the methodology before it is implemented. The private

23  accounting firm or economic analysis firm shall certify

24  whether the applicable statements in the annual report comply

25  with this section.

26         Section 6.  Subsections (1) and (4) of section 288.711,

27  Florida Statutes, are amended to read:

28         288.711  Florida Investment Incentive Trust Fund.--

29         (1)  There is hereby created the Florida Investment

30  Incentive Trust Fund from which money may be drawn for

31  investments or loans, as authorized by this section, to


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  1  encourage the development of appropriate financial mechanisms

  2  in the private sector to capitalize and assist in the

  3  development of black business enterprises. All income earned

  4  by investments of the fund shall be deposited in the fund for

  5  carrying out the purposes of ss. 288.707-288.714 ss. 9-21,

  6  chapter 85-104, Laws of Florida. Administrative costs of the

  7  program shall be appropriated in a lump-sum appropriation from

  8  the fund created herein and shall be provided in the General

  9  Appropriations Act.

10         (4)  All loans and investments, and any income related

11  thereto, shall be used to carry out the public purpose of ss.

12  288.707-288.714 ss. 9-21, chapter 85-104, Laws of Florida,

13  which is to develop black business enterprises.  This is not

14  meant to preclude a reasonable profit for the participating

15  black business investment corporation or for return of equity

16  developed to the state and participating financial

17  institutions upon any distribution of the assets or excess

18  income of the investment corporation.

19         Section 7.  Paragraph (b) of subsection (3) and

20  paragraph (b) of subsection (4) of section 288.712, Florida

21  Statutes, are amended to read:

22         288.712  Florida guarantor funds.--

23         (3)

24         (b)  For purposes of this section, the corporation

25  board may utilize the Black Contractors Bond Trust Fund in the

26  State Treasury, consisting of moneys deposited or credited to

27  the Black Contractors Bond Trust Fund pursuant to

28  appropriation made by law; any grants, gifts, and

29  contributions received pursuant to ss. 288.707-288.714 ss.

30  9-21, chapter 85-104, Laws of Florida; all moneys recovered

31  following defaults; and any other moneys obtained by the board


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    CS for CS for CS for SB 386                    First Engrossed



  1  for this purpose. The fund shall be administered by the

  2  corporation board in trust for the purposes of this section

  3  and shall at no time be part of general public funds under the

  4  following procedures:

  5         1.  The corporation board is authorized to post or

  6  pledge the assets of the Black Contractors Bond Trust Fund as

  7  collateral in amounts necessary to secure the issuance of bid

  8  bonds and construction contract bonds to black business

  9  enterprises. The board of the corporation shall establish a

10  premium to be charged to the black business enterprise for

11  which the assets have been so posted or pledged, pursuant to

12  generally accepted actuarial principles, and shall establish

13  such rules as may otherwise be necessary to carry out the

14  purposes of this section.

15         2.  Any claims against the state arising from defaults

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

17         3.  Nothing in this subsection shall be construed to

18  prohibit or restrict the corporation board from entering into

19  a joint venture or other contractual agreement with a private

20  insurer or to invest in a private entity to handle all or part

21  of a black contractors bonding program, credit program, or

22  both for black business enterprises. Such investments or joint

23  venture shall be made under conditions required by law and as

24  the board may, from time to time, require and may take any of

25  the forms described in s. 288.711(2) and (3). The board is

26  authorized and encouraged to contract with a regulated surety

27  company to conduct a surety bond program for black business

28  enterprises. Moneys from the Black Contractors Bond Trust Fund

29  may be used for these purposes.

30         (4)

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  1         (b)  If the board of the corporation chooses to

  2  establish a loan guaranty program, it shall use utilize the

  3  Black Business Loan Guaranty Trust Fund in the State Treasury,

  4  consisting of moneys deposited or credited to the Black

  5  Business Loan Guaranty Trust Fund pursuant to appropriation

  6  made by law; any grants, gifts, and contributions received

  7  pursuant to ss. 288.707-288.714 ss. 9-21, chapter 85-104, Laws

  8  of Florida; all moneys recovered following defaults; and any

  9  other moneys obtained by the corporation board for this

10  purpose. The Black Business Loan Guaranty Trust Fund shall be

11  administered by the corporation board in trust for the

12  purposes of this section and shall at no time be part of

13  general public funds under the following procedures:

14         1.  The corporation board shall utilize the Black

15  Business Loan Guaranty Program Administrative and Loss Reserve

16  Fund in the State Treasury, consisting of all premiums charged

17  and collected in accordance with this section and any income

18  earned from the moneys in the account. All expenses of the

19  corporation board in carrying out the purposes of this

20  subsection shall be paid from the Black Business Loan Guaranty

21  Program Administrative and Loss Reserve Fund.  Any moneys to

22  the credit of the Black Business Loan Guaranty Program

23  Administrative and Loss Reserve Fund in excess of the amount

24  necessary to fund the corporation's board's activity shall be

25  held as a loss reserve to pay claims arising from defaults on

26  loans underwritten in accordance with this section.

27         2.  Any claims against the state arising from defaults

28  shall be payable initially from the Black Business Loan

29  Guaranty Program Administrative and Loss Reserve Fund and,

30  secondarily, from the Black Business Loan Guaranty Trust Fund.

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  1         3.  The corporation board as loan guarantor may

  2  exercise all rights and powers of a company authorized by the

  3  Department of Insurance to guarantee loans but shall not be

  4  subject to any requirements of an insurance company under the

  5  Florida Insurance Code, nor to any rules of the Department of

  6  Insurance; however, the corporation board shall refer to the

  7  insurance code and rules thereunder when designing and

  8  administering such program. The corporation board shall follow

  9  sound actuarial principles when administering this program.

10  The corporation board shall establish a premium for the loan

11  guaranty and such rules as may be necessary to carry out the

12  purposes of this section.

13         4.  The corporation board may guarantee no more than 20

14  percent of the principal of a loan to a black business

15  enterprise.

16         Section 8.  Section 288.714, Florida Statutes, is

17  amended to read:

18         288.714  Annual report.--By February 1 March 31 of each

19  year the board of the corporation shall submit to the

20  Governor, the President of the Senate, the Speaker of the

21  House of Representatives, and the director of the Office of

22  Tourism, Trade, and Economic Development and the secretary of

23  the Department of Labor and Employment Security a complete and

24  detailed report setting forth:

25         (1)  Operations and accomplishments of the corporation

26  board;

27         (2)  The number of black business enterprises which

28  participated during the past year in programs established or

29  administered by the corporation board;

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  1         (3)  The number of black business enterprises receiving

  2  assistance from the corporation board and the manner in which

  3  the assistance was received;

  4         (4)  The status of black business enterprises that

  5  which participated in programs established or administered by

  6  the corporation board;

  7         (5)  The total number of jobs represented by black

  8  business enterprises participating in programs established or

  9  administered by the corporation board;

10         (6)  Receipts and expenditures of the corporation board

11  during its most recent fiscal year in accordance with the

12  categories or classifications established by the corporation

13  board for its operating and capital accounts;

14         (7)  Assets and liabilities of the corporation board at

15  the end of its most recent fiscal year and the status of its

16  trust funds; and

17         (8)  A schedule of local bonds outstanding authorized

18  by the corporation board and capital participation instruments

19  issued by the corporation board for the year and the total to

20  date.

21         Section 9.  Black Business Investment Board, Inc.,

22  state employee leasing program.--

23         (1)  The Department of Management Services shall

24  establish a lease-agreement program under which an employee as

25  of June 30, 2002, of the Black Business Investment Board,

26  Inc., created under chapter 85-104, Laws of Florida, retains

27  his or her status as a state employee until a set date.

28         (2)  The Department of Management Services shall

29  establish the terms and conditions of the program and such

30  lease agreements.

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  1         (a)  Status as a state employee shall include the right

  2  to participate in the Florida Retirement System.

  3         (b)  Any employee who participates in a lease agreement

  4  shall work under the direct supervision of the corporation.

  5         (c)  Status as a state employee under a lease agreement

  6  as provided in this section expires on June 30, 2004, unless

  7  the employee voluntarily relinquishes his or her status as a

  8  state employee before that date.

  9         Section 10.  Subsection (5) of section 288.9015,

10  Florida Statutes, is amended to read:

11         288.9015  Enterprise Florida, Inc.; purpose; duties.--

12         (5)  Enterprise Florida, Inc., shall incorporate the

13  needs of small and minority businesses into the

14  economic-development, international-trade and

15  reverse-investment, and workforce-development responsibilities

16  assigned to the organization by this section. Where

17  practicable and consistent with the expertise of the Black

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

19  shall contract with the corporation for the delivery of

20  services in fulfillment of the responsibilities of Enterprise

21  Florida, Inc., relating to small and minority businesses.

22         Section 11.  The Florida Black Business Investment

23  Board, Inc., shall report to the Governor, the President of

24  the Senate, and the Speaker of the House of Representatives by

25  February 1, 2003, on the feasibility of including minority

26  business enterprises, as defined under section 288.703,

27  Florida Statutes, within the programs, services, and

28  activities of the Florida Black Business Investment Board,

29  Inc., and the black business investment corporations. The

30  report shall include recommendations on a funding level

31  necessary to expand the scope of such programs, services, and


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  1  activities to include other minority business enterprises in

  2  addition to black business enterprises.

  3         Section 12.  This act shall take effect July 1, 2002.

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