1 | A bill to be entitled |
2 | An act relating to black business investment; amending s. |
3 | 288.702, F.S.; revising a short title; amending s. 20.18, |
4 | F.S.; revising a duty of the Department of Community |
5 | Affairs; including as a purpose of the Office of Urban |
6 | Opportunity in the Department of Community Affairs the |
7 | administration of the Black Business Loan Program; |
8 | amending s. 288.706, F.S.; deleting references to the |
9 | Florida Black Business Investment Board, Inc., and black |
10 | business investment corporations from a list of certain |
11 | financial institutions maintained by the Department of |
12 | Management Services; requiring the Department of |
13 | Management Services to collaborate with the Florida Black |
14 | Business Investment Board, Inc., and the Department of |
15 | Community Affairs for certain purposes; creating s. |
16 | 288.7065, F.S.; providing a short title; amending s. |
17 | 288.707, F.S.; revising provisions creating the Florida |
18 | Black Business Investment Board, Inc.; revising |
19 | legislative findings; creating the board; requiring the |
20 | board to contract with the Department of Community Affairs |
21 | for certain purposes; specifying application of public |
22 | records and public meetings requirements; providing for |
23 | appointment of a board of directors; specifying terms of |
24 | office and experience requirements of board members; |
25 | providing for filling of board vacancies; authorizing the |
26 | Governor to appoint a chair; providing for meetings; |
27 | requiring members to serve without compensation; providing |
28 | for reimbursement of expenses; requiring members to file |
29 | disclosure of financial interests; terminating existing |
30 | board appointments and providing for new appointments; |
31 | amending s. 288.708, F.S.; deleting a provision specifying |
32 | prudent use of certain funds and requiring use of funds |
33 | according to applicable laws, bylaws, or contracts; |
34 | applying certain salary limitation provisions to employees |
35 | of the board; amending s. 288.709, F.S.; revising the |
36 | powers of the board; amending s. 288.7091, F.S.; revising |
37 | the duties of the board; creating s. 288.710, F.S.; |
38 | providing a definition; specifying eligibility of certain |
39 | black business investment corporations to participate in |
40 | the Black Business Loan Program; requiring the department |
41 | to give priority consideration to such corporations for |
42 | participation in the program; creating s. 288.7102, F.S.; |
43 | establishing the Black Business Loan Program in the |
44 | Department of Community Affairs; requiring the department |
45 | to provide loans and loan guarantees under the program for |
46 | certain purposes; providing duties and responsibilities of |
47 | the department in administering the program; requiring the |
48 | Florida Black Business Investment Board, Inc., and |
49 | participating black business investment corporations to |
50 | adopt uniform loan and loan guarantee underwriting |
51 | policies and application criteria and to establish a |
52 | minimum interest rate; providing for payment of certain |
53 | administrative expenses through state funds; providing a |
54 | limitation; requiring the department to develop a service |
55 | allocation policy for certain purposes; providing loan |
56 | recipient eligibility requirements; requiring annual |
57 | certification of eligibility; requiring the department to |
58 | consult with the Florida Black Business Investment Board, |
59 | Inc.; requiring the department to adopt rules; creating s. |
60 | 288.7103, F.S.; providing black business enterprise |
61 | eligibility requirements for receiving loans or loan |
62 | guarantees; amending s. 288.711, F.S.; renaming the |
63 | Florida Investment Incentive Trust Fund as the Florida |
64 | Black Business Loan Program Trust Fund; placing the fund |
65 | in the Department of Community Affairs for purposes of |
66 | implementing and administering the Black Business Loan |
67 | Program; deleting provisions relating to authorizations |
68 | for the board to make investments from the fund for |
69 | certain purposes; deleting certain intent and purposes |
70 | provisions; amending s. 288.714, F.S.; requiring |
71 | recipients to provide quarterly and annual reports; |
72 | specifying report requirements; requiring the department |
73 | to submit an annual program report to the Governor and |
74 | Legislature; specifying report requirements; requiring the |
75 | Florida Black Business Investment Board, Inc., and certain |
76 | black business investment corporations to submit an annual |
77 | report to the department on uses of certain state funds; |
78 | specifying report requirements; amending s. 288.9015, |
79 | F.S.; requiring Enterprise Florida, Inc., to collaborate |
80 | with the Florida Black Business Investment Board, Inc., |
81 | and the Department of Community Affairs for certain |
82 | purposes; requiring the Office of Program Policy Analysis |
83 | and Government Accountability to submit a status report to |
84 | the Governor and Legislature on the department's |
85 | implementation of the Florida Black Business Investment |
86 | Act; requiring the office to conduct a program review of |
87 | the department; requiring the office to submit a program |
88 | review report to the Governor and Legislature; requiring |
89 | the Auditor General to conduct an audit of the Florida |
90 | Black Business Investment Board, Inc.'s, investment |
91 | activity for a certain time period; requiring the Auditor |
92 | General to submit an audit report to the Governor and |
93 | Legislature; repealing s. 288.7092, F.S., relating to |
94 | return on investment from activities of the corporation; |
95 | repealing s. 288.7095, F.S., relating to duties of black |
96 | business investment corporations; repealing s. 288.71, |
97 | F.S., relating to conditions for board action; repealing |
98 | s. 288.7101, F.S., relating to the state employee leasing |
99 | program of the Department of Management Services for |
100 | employees of the Florida Black Business Investment Board, |
101 | Inc.; repealing s. 288.712, F.S., relating to Florida |
102 | guarantor funds; repealing s. 288.713, F.S., relating to |
103 | capital participation instruments; providing an |
104 | appropriation; authorizing certain positions and approved |
105 | salary rates; providing an effective date. |
106 |
|
107 | Be It Enacted by the Legislature of the State of Florida: |
108 |
|
109 | Section 1. Section 288.702, Florida Statutes, is amended |
110 | to read: |
111 | 288.702 Short title.--This section and sections 288.703- |
112 | 288.706 This act shall be known and may be cited as the "Florida |
113 | Small and Minority Business Assistance Act of 1985." |
114 | Section 2. Paragraph (b) of subsection (4) and subsection |
115 | (6) of section 20.18, Florida Statutes, are amended to read: |
116 | 20.18 Department of Community Affairs.--There is created a |
117 | Department of Community Affairs. |
118 | (4) In addition to its other powers, duties, and |
119 | functions, the department shall, under the general supervision |
120 | of the secretary and the Interdepartmental Coordinating Council |
121 | on Community Services, assist and encourage the development of |
122 | state programs by the various departments for the productive use |
123 | of human resources, and the department shall work with other |
124 | state agencies in order that together they might: |
125 | (b) Assist Enterprise Florida, Inc., the Department of |
126 | Commerce in the development of employment opportunities; and |
127 | (6) The Office of Urban Opportunity is created within the |
128 | Department of Community Affairs. The purpose of the office is to |
129 | administer the Front Porch Florida initiative, a comprehensive, |
130 | community-based urban core redevelopment program that enables |
131 | urban core residents to craft solutions to the unique challenges |
132 | of each designated community, and the Black Business Loan |
133 | Program, the purpose of which is to leverage state, local, and |
134 | private funds to provide loans and loan guarantees to black |
135 | business enterprises that cannot obtain capital through |
136 | conventional lending institutions but which otherwise could |
137 | compete successfully in the private sector. |
138 | Section 3. Subsection (11) of section 288.706, Florida |
139 | Statutes, is amended, and subsection (12) is added to that |
140 | section, to read: |
141 | 288.706 Florida Minority Business Loan Mobilization |
142 | Program.-- |
143 | (11) The Department of Management Services shall maintain |
144 | a listing of financial institutions willing to participate in |
145 | the Florida Minority Business Loan Mobilization Program, which |
146 | may include the Florida Black Business Investment Board, Inc., |
147 | and black business investment corporations. This list of |
148 | financial institutions shall not be exclusive. A minority |
149 | business enterprise vendor who has a working relationship with a |
150 | financial institution is encouraged to request that the |
151 | financial institution apply to participate as a financial |
152 | institution for the program. |
153 | (12) The Department of Management Services shall |
154 | collaborate with the Florida Black Business Investment Board, |
155 | Inc., and the Department of Community Affairs to assist in the |
156 | development and enhancement of black business enterprises. |
157 | Section 4. Section 288.7065, Florida Statutes, is created |
158 | to read: |
159 | 288.7065 Short title.--This section and sections 288.707- |
160 | 288.707-288.714 may be cited as the "Florida Black Business |
161 | Investment Act." |
162 | Section 5. Section 288.707, Florida Statutes, is amended |
163 | to read: |
164 | (Substantial rewording of section. See |
165 | s. 288.707, F.S., for present text.) |
166 | 288.707 Florida Black Business Investment Board, Inc.; |
167 | findings; creation; membership; organization; meetings; |
168 | disclosure.-- |
169 | (1) The Legislature finds that the public interest of the |
170 | state will be served by the creation of a nonprofit public- |
171 | private entity the primary mission of which shall be to assist |
172 | in the development and expansion of black business enterprises |
173 | by: |
174 | (a) Advising the Department of Community Affairs in its |
175 | oversight of the Black Business Loan Program and creating long- |
176 | range strategic policy for the program. |
177 | (b) Evaluating the unmet need for capital by black |
178 | business enterprises in the state. |
179 | (c) Creating partnerships between state and local |
180 | governments and private enterprises to aid in the development |
181 | and expansion of black business enterprises. |
182 | (d) Providing a network of information resources for black |
183 | business enterprises and providing technical assistance through |
184 | this network. |
185 | (2) There is created a not-for-profit corporation to be |
186 | known as the Florida Black Business Investment Board, Inc., |
187 | referred to in this section as the board, which shall be |
188 | registered, incorporated, organized, and operated in compliance |
189 | with chapter 617 and which shall not be a unit or entity of |
190 | state government. The board shall contract with the Department |
191 | of Community Affairs to implement the provisions of ss. 288.707- |
192 | 288.714. However, the Legislature determines that public policy |
193 | dictates that the corporation operate in the most open and |
194 | accessible manner consistent with its public purpose. Therefore, |
195 | the Legislature specifically declares that the board and its |
196 | advisory committees or similar groups created by the board, |
197 | including any subsidiaries, are subject to the provisions of |
198 | chapter 119, relating to public records, and the provisions of |
199 | chapter 286, relating to public meetings and records. |
200 | (3) The board shall be governed by a board of directors |
201 | chosen as follows: |
202 | (a) Four members appointed by the Governor who shall serve |
203 | terms of 4 years, except that in making initial appointments, |
204 | the Governor shall appoint two members to serve for terms of 2 |
205 | years and two members to serve for terms of 3 years. |
206 | (b) Two members appointed by the President of the Senate, |
207 | who shall serve terms of 2 years. |
208 | (c) Two members appointed by the Speaker of the House of |
209 | Representatives, who shall serve terms of 2 years. |
210 | (d) The vice chair of Enterprise Florida, Inc., or his or |
211 | her designee, who shall be an ex officio, nonvoting member. |
212 | (e) Three members who are officers or directors of |
213 | participating black business investment corporations, who shall |
214 | be appointed by the Secretary of Community Affairs upon the |
215 | recommendation of the Florida Consortium of Black Business |
216 | Investment Corporations, Inc. |
217 | (4) Members of the board must have experience in business, |
218 | including financial services, banking, or economic development. |
219 | (5) Any person appointed to fill a vacancy on the board |
220 | shall be appointed in a like manner and shall serve for only the |
221 | unexpired term. Any member shall be eligible for reappointment. |
222 | (6) The Governor shall appoint the chair, who shall be a |
223 | member of the board and who shall serve at the pleasure of the |
224 | Governor. The board shall annually elect one of its members as |
225 | vice chair and one of its members as secretary-treasurer. The |
226 | secretary-treasurer shall keep a record of the proceedings of |
227 | the board and shall be the custodian of all books, documents, |
228 | and papers filed with the board, the minutes of meetings of the |
229 | board, and the board's official seal. |
230 | (7) The board shall meet at least four times annually upon |
231 | the call of the chair or vice chair or at the request of a |
232 | majority of the membership. A majority of the total number of |
233 | current members of the board shall constitute a quorum. The |
234 | board may take official action by a majority vote of the members |
235 | present at any meeting at which a quorum is present. |
236 | (8) Members of the board shall serve without compensation, |
237 | but members, the president of the corporation, and other board |
238 | employees may be reimbursed for all reasonable, necessary, and |
239 | actual expenses as determined by the board and approved by the |
240 | department. |
241 | (9) Each member of the board who is not otherwise required |
242 | to disclose financial interests pursuant to s. 8, Art. II of the |
243 | State Constitution or s. 112.3144 shall file a statement of |
244 | financial interests pursuant to s. 112.3145. |
245 | (10) Existing board terms shall expire on the effective |
246 | date of this act and new members shall be appointed according to |
247 | the terms of this act by October 1, 2007. |
248 | Section 6. Subsection (2) of section 288.708, Florida |
249 | Statutes, is amended to read: |
250 | 288.708 President; employees.-- |
251 | (2) The corporation and its officers and board members are |
252 | responsible for the prudent use of all public and private funds |
253 | and shall ensure that the use of such funds is in accordance |
254 | with all applicable laws, bylaws, or contractual requirements. |
255 | An employee of the board corporation may not receive |
256 | compensation for employment that exceeds the salary paid to the |
257 | Governor, unless the board corporation and the employee have |
258 | executed a contract that prescribes specific and measurable |
259 | performance outcomes for the employee, the satisfaction of which |
260 | provides the basis for the award of incentive payments that |
261 | increase the employee's total compensation to a level above the |
262 | salary paid to the Governor. |
263 | Section 7. Section 288.709, Florida Statutes, is amended |
264 | to read: |
265 | 288.709 Powers of the Florida Black Business Investment |
266 | Board, Inc.--The board shall have all the powers granted under |
267 | chapter 617 and any powers necessary or convenient to carry out |
268 | and effectuate the purposes and provisions of ss. 288.707- |
269 | 288.714, including, but not limited to, the power to: |
270 | (1) Adopt bylaws for the regulation of its affairs and the |
271 | conduct of its business and adopt policies to implement the |
272 | provisions of law conferring duties upon it. Such bylaws shall |
273 | provide that the corporation is subject to the requirements of |
274 | s. 24, Art. I of the State Constitution and chapter 119 and s. |
275 | 286.011. |
276 | (2) Adopt an official seal. |
277 | (3) Sue and be sued in its own name. |
278 | (4) Make and execute contracts and other instruments |
279 | necessary or convenient for the exercise of its power and |
280 | functions. |
281 | (5) Acquire, hold, and dispose of personal property for |
282 | its corporate purposes. |
283 | (1)(6) Enter into agreements or other transactions with |
284 | any federal, state, or local agency or private entity. |
285 | (7) Encourage financial institutions to participate in |
286 | consortia for the purpose of investing in black business |
287 | enterprises. |
288 | (8) Ensure that funds available to the board for purposes |
289 | set forth in ss. 288.707-288.714 are disbursed on a statewide |
290 | basis and are not concentrated in one geographical area. |
291 | (2)(9) Invest any funds held in reserves or sinking funds, |
292 | or any funds not required for immediate disbursement, in such |
293 | investments as may be authorized for trust funds under s. |
294 | 215.47; however, such investments will be made on behalf of the |
295 | board by the Chief Financial Officer or by another trustee |
296 | appointed for that purpose. |
297 | (10) Appear in its own behalf before boards, commissions, |
298 | departments, or other agencies of municipal, county, state, or |
299 | Federal Government. |
300 | (11) Procure insurance or require bond against any loss in |
301 | connection with its property in such amounts and from such |
302 | insurers as may be necessary or desirable. |
303 | (3)(12) Apply for, accept, and disburse from any state or |
304 | nonstate source Receive and accept from any federal, state, or |
305 | local agency grants, loans, or advances for, or in aid of, the |
306 | purposes of ss. 288.707-288.714, and to receive and accept |
307 | contributions from any source of either money, property, labor, |
308 | or other things of value, to be held, used, and applied for said |
309 | purposes. |
310 | (13) Create, issue, and buy and sell stock, evidences of |
311 | indebtedness, and other capital participation instruments; to |
312 | hold such stock, evidences of indebtedness, and capital |
313 | participation instruments; and to underwrite the creation of a |
314 | capital market for these securities in a manner designed to |
315 | enhance development of capital ownership in the target group. |
316 | (4)(14) Provide and pay for such advisory services and |
317 | technical assistance as may be necessary or desirable to carry |
318 | out the purposes of this act, upon the approval of the |
319 | department. |
320 | (5)(15) Engage in special programs to enhance the |
321 | development of black business enterprises as authorized by this |
322 | act and approved by the department. |
323 | (16) Promote black ownership of financial institutions in |
324 | Florida. |
325 | (17) Take, hold, and improve property, including real |
326 | property. |
327 | (18) Do any and all things necessary or convenient to |
328 | carry out the purposes of, and exercise the powers given and |
329 | granted in, ss. 288.707-288.714, and exercise any other powers, |
330 | rights, or responsibilities of a corporation. |
331 | (6)(19) In addition to any indemnification available under |
332 | chapter 617, indemnify, and purchase and maintain insurance on |
333 | behalf of, directors, officers, and employees of the corporation |
334 | and its boards against any personal liability or accountability |
335 | by reason of actions taken while acting within the scope of |
336 | their authority. |
337 | (7)(20) Provide in its bylaws that, upon the dissolution |
338 | of the corporation, all of its assets acquired through the use |
339 | of state funds, after payment of all legal debts and |
340 | liabilities, revert to this state. |
341 | Section 8. Section 288.7091, Florida Statutes, is amended |
342 | to read: |
343 | (Substantial rewording of section. See |
344 | s. 288.7091, F.S., for present text.) |
345 | 288.7091 Duties of the Florida Black Business Investment |
346 | Board, Inc.--The board shall: |
347 | (1) Serve as an advisory board to the Department of |
348 | Community Affairs, through contract with the department, to |
349 | assist the department with the implementation of ss. 288.707- |
350 | 288.714. |
351 | (2) Aid the development and expansion of black business |
352 | enterprises by leveraging state, local, and private funds to be |
353 | held by the department for use according to the provisions of |
354 | ss. 288.707-288.714. |
355 | (3) Serve as the clearinghouse for information and sources |
356 | of technical assistance that will enhance the development and |
357 | expansion of black business enterprises and facilitate the |
358 | provision of technical assistance in communities in which such |
359 | services are otherwise unavailable. |
360 | (4) Aggressively market the Black Business Loan Program |
361 | and related services to black business enterprises through all |
362 | appropriate media outlets, including media targeting the |
363 | African-American community. |
364 | (5) Collaborate with Enterprise Florida, Inc., or its |
365 | affiliates to develop and expand black business enterprises. |
366 | (6) Collaborate with the Department of Transportation, the |
367 | Department of Management Services, including the Florida |
368 | Minority Business Loan Mobilization Program, Workforce Florida, |
369 | Inc., and other state agencies and partners, the State |
370 | University System, including the Florida Agricultural and |
371 | Mechanical University's Institute of Urban Policy and Commerce, |
372 | school boards, and local governments to create a network of |
373 | information and seek out available resources to enhance the |
374 | development and expansion of black business enterprises. |
375 | (7) Develop strategies to increase financial institution |
376 | investment in black business enterprises. |
377 | (8) Provide a 5-year projection of the need for capital by |
378 | black business enterprises. The board shall contract with an |
379 | independent entity to prepare the projection once every 5 years. |
380 | (9) Annually provide for a financial audit as defined in |
381 | s. 11.45 of the board's accounts and records by an independent |
382 | certified public accountant. The audit shall include an |
383 | explanation of all investments made by the board and an |
384 | explanation of administrative costs. Within 6 months after the |
385 | end of the fiscal year, the audit report shall be provided to |
386 | the Governor, the President of the Senate, the Speaker of the |
387 | House of Representatives, and the Auditor General. |
388 | Section 9. Section 288.710, Florida Statutes, is created |
389 | to read: |
390 | 288.710 Black business investment corporations.-- |
391 | (1) The term "black business investment corporation" means |
392 | a subsidiary of a financial institution or a consortium of |
393 | financial institutions incorporated as a nonprofit corporation |
394 | to provide loans and loan guarantees to black business |
395 | enterprises under ss. 288.707-288.714. |
396 | (2) A black business investment corporation that meets the |
397 | requirements of s. 288.7102(7) is eligible to participate in the |
398 | Black Business Loan Program and shall receive priority |
399 | consideration by the department for participation in the |
400 | program. |
401 | Section 10. Section 288.7102, Florida Statutes, is created |
402 | to read: |
403 | 288.7102 Black Business Loan Program.--The Black Business |
404 | Loan Program is established in the Department of Community |
405 | Affairs. Under the program, the department shall provide loans |
406 | and loan guarantees, through eligible recipients, from the |
407 | Florida Black Business Investment Incentive Trust Fund to black |
408 | business enterprises who cannot obtain capital through |
409 | conventional lending institutions but which could otherwise |
410 | compete successfully in the private sector. |
411 | (1) The department shall establish a uniform, open, and |
412 | competitive application and annual certification process for |
413 | eligible recipients who seek funds to provide loans or loan |
414 | guarantees to black business enterprises pursuant to the Florida |
415 | Black Business Investment Act. |
416 | (2) The Florida Black Business Investment Board, Inc., and |
417 | participating black business investment corporations shall adopt |
418 | uniform loan and loan guarantee underwriting policies, which |
419 | must be approved by the department. |
420 | (3) The Florida Black Business Investment Board, Inc., and |
421 | participating black business investment corporations shall |
422 | establish a minimum interest rate for loans and loan guarantees |
423 | to ensure that necessary loan administration costs are covered. |
424 | The minimum interest rate must be approved by the department. |
425 | (4) The department shall adopt uniform criteria to be used |
426 | by eligible recipients in evaluating and approving applications |
427 | for loans or loan guarantees consistent with s. 288.7103. |
428 | (5) Administrative expenses directly related to state |
429 | funds and accountability requirements incurred by an eligible |
430 | recipient in providing assistance to a black business enterprise |
431 | receiving a loan or loan guarantee may be paid out of state |
432 | funds not to exceed 7 percent. |
433 | (6) The department shall develop an allocation policy to |
434 | ensure that services provided under ss. 288.707-288.714 for the |
435 | benefit of black business enterprises are disbursed equitably |
436 | throughout the state. |
437 | (7) To be eligible to receive funds and provide loans or |
438 | loan guarantees under this section, a recipient must: |
439 | (a) Be a corporation not for profit registered in the |
440 | state. |
441 | (b) Demonstrate that its board of directors includes |
442 | citizens of the state experienced in the development of black |
443 | business enterprises. |
444 | (c) Demonstrate that the recipient has a business plan |
445 | that will allow the recipient to operate consistent with ss. |
446 | 288.707-288.714 and the rules of the department. |
447 | (d) Demonstrate that the recipient has the technical |
448 | skills to analyze and evaluate applications by black business |
449 | enterprises for loans or loan guarantees. |
450 | (e) Demonstrate that the recipient has established viable |
451 | partnerships with public and private funding sources, economic |
452 | development agencies, and workforce development and job referral |
453 | networks. |
454 | (f) Demonstrate that the recipient can provide a private |
455 | match equal to 75 percent of the amount of the loan or loan |
456 | guarantee provided by the department. |
457 | (g) Agree to maintain the recipient's books and records |
458 | relating to funds received by the department according to |
459 | generally accepted accounting principles and to make such books |
460 | and records available to the department for inspection upon |
461 | reasonable notice. |
462 | (h) Agree to be subject to the provisions of chapter 119 |
463 | relating to public records and the provisions of chapter 286 |
464 | relating to public meetings, with respect to all state funds |
465 | received by the eligible recipient from the department. |
466 | (8) The department shall annually certify each eligible |
467 | recipient, who must meet the provisions of ss. 288.707-288.714, |
468 | the terms of the contract between the recipient and the |
469 | department, and any other applicable state or federal laws. An |
470 | entity may not receive funds under ss. 288.707-288.714 unless |
471 | the entity meets annual certification requirements. |
472 | (9) The department shall consult with the Florida Black |
473 | Business Investment Board, Inc., in implementing the provisions |
474 | of this section. |
475 | (10) The department shall adopt rules pursuant to ss. |
476 | 120.536(1) and 120.54 to implement the provisions of this |
477 | section. |
478 | Section 11. Section 288.7103, Florida Statutes, is created |
479 | to read: |
480 | 288.7103 Eligibility for loan or loan guarantee.--A black |
481 | business enterprise is not eligible to receive a loan or loan |
482 | guarantee unless the enterprise demonstrates that: |
483 | (1) The proposed loan or loan guarantee is economically |
484 | sound and will assist the black business enterprise in entering |
485 | the conventional lending market, increasing opportunities for |
486 | employment, and strengthening the economy of the state. |
487 | (2) The enterprise will be able to compete successfully in |
488 | the private sector if the enterprise obtains the requested |
489 | financial assistance and has or will obtain appropriate and |
490 | credible technical or managerial support through an organization |
491 | approved by the corporation. |
492 | Section 12. Section 288.711, Florida Statutes, is amended |
493 | to read: |
494 | 288.711 Florida Black Business Investment Incentive Trust |
495 | Fund.-- |
496 | (1) There is hereby created the Florida Black Business |
497 | Loan Program Investment Incentive Trust Fund in the Department |
498 | of Community Affairs for purposes of providing loans or loan |
499 | guarantees under the Black Business Loan Program as provided in |
500 | s. 288.7102 from which money may be drawn for investments or |
501 | loans, as authorized by this section, to encourage the |
502 | development of appropriate financial mechanisms in the private |
503 | sector to capitalize and assist in the development of black |
504 | business enterprises. All income earned by investments of the |
505 | fund shall be deposited in the fund for carrying out the |
506 | purposes of ss. 288.707-288.714. Administrative costs of the |
507 | program shall be appropriated in a lump-sum appropriation from |
508 | the fund created herein and shall be provided in the General |
509 | Appropriations Act. |
510 | (2) The board is authorized to invest from the Florida |
511 | Investment Incentive Trust Fund in black business investment |
512 | corporations which conduct, or agree to conduct, programs of |
513 | assisting the development of black business enterprises. Such |
514 | investments shall be made under conditions required by law and |
515 | as the board may, from time to time, require and may take any of |
516 | the following forms: |
517 | (a) Purchases of stock, preferred or common, voting or |
518 | nonvoting, as determined by the board; |
519 | (b) Loans, with or without recourse, in either a |
520 | subordinated or priority position, as determined by the board; |
521 | provided, however, that no more than 20 percent of the capital |
522 | base may be used for direct loans to black business enterprises; |
523 | or |
524 | (c) Any other investment authorized by the board based on |
525 | the expertise of its members. |
526 | (3) It is the intent of the Legislature that if any one |
527 | type of investment mechanism authorized in subsection (2) is |
528 | held to be invalid all other valid mechanisms remain available. |
529 | (4) All loans and investments, and any income related |
530 | thereto, shall be used to carry out the public purpose of ss. |
531 | 288.707-288.714, which is to develop black business enterprises. |
532 | This is not meant to preclude a reasonable profit for the |
533 | participating black business investment corporation or for |
534 | return of equity developed to the state and participating |
535 | financial institutions upon any distribution of the assets or |
536 | excess income of the investment corporation. |
537 | Section 13. Section 288.714, Florida Statutes, is amended |
538 | to read: |
539 | (Substantial rewording of section. See |
540 | s. 288.714, F.S., for present text.) |
541 | 288.714 Quarterly and annual reports.-- |
542 | (1) Each recipient of state funds under ss. |
543 | 288.707-288.714 shall provide to the department a quarterly |
544 | report within 15 days after the end of each calendar quarter |
545 | that includes a detailed summary of the recipient's performance |
546 | of the duties imposed by ss. 288.707-288.714, including, but not |
547 | limited to: |
548 | (a) The dollar amount of all loans or loan guarantees made |
549 | to black business enterprises, the percentages of the loans |
550 | guaranteed, and the name and identification of the types of |
551 | businesses served. |
552 | (b) Loan performance information. |
553 | (c) The amount and nature of all other financial |
554 | assistance provided to black business enterprises. |
555 | (d) The amount and nature of technical assistance provided |
556 | to black business enterprises, including technical services |
557 | provided in areas in which such services are otherwise |
558 | unavailable. |
559 | (e) A balance sheet for the recipient, including an |
560 | explanation of all investments and administrative and |
561 | operational expenses. |
562 | (f) A summary of all services provided to non-black |
563 | business enterprises, including the dollar value and nature of |
564 | such services and the name and identification of the types of |
565 | businesses served. |
566 | (g) Any other information as required by the department by |
567 | rule. |
568 | (2) By May 1 of each year, the department shall provide to |
569 | the Governor, the President of the Senate, and the Speaker of |
570 | the House of Representatives a detailed report of the |
571 | performance of the Black Business Loan Program, including: |
572 | (a) A cumulative summary of quarterly report data required |
573 | by subsection (1). |
574 | (b) A description of the strategies implemented by the |
575 | department to increase private investment in black business |
576 | enterprises. |
577 | (c) A summary of the Florida Black Business Investment |
578 | Board, Inc.'s, performance of its duties under ss. 288.707- |
579 | 288.714. |
580 | (d) The most recent 5-year projection of the need for |
581 | capital by black business enterprises. |
582 | (e) Recommendations for legislative or other changes to |
583 | enhance the development and expansion of black business |
584 | enterprises in the state. |
585 | (f) A projection of the program's activities during the |
586 | next 12 months. |
587 | (3) The Florida Black Business Investment Board, Inc., and |
588 | any black business investment corporation that has received |
589 | state funds prior to the implementation of ss. 288.707-288.714 |
590 | shall provide to the department by March 1 of each year a report |
591 | with respect to the use of state funds received prior to and |
592 | through the 2004-2005 fiscal year. The report must include: |
593 | (a) The number of black business enterprises that received |
594 | financial assistance, including loans or loan guarantees, funded |
595 | in whole or in part by the state. |
596 | (b) The number of black business enterprises receiving |
597 | technical or other nonfinancial assistance from the recipient or |
598 | third parties. |
599 | (c) The status of black business enterprises that have |
600 | received financial or other assistance from the recipient. |
601 | (d) The total number of jobs created or maintained by |
602 | black business enterprises that received financial or other |
603 | assistance from the recipient. |
604 | (e) An operating statement for the recipient, including an |
605 | explanation of the use of all state funds, the return on |
606 | investment or interest earned on state funds, and all |
607 | administrative costs of the recipient. |
608 | Section 14. Subsection (4) of section 288.9015, Florida |
609 | Statutes, is amended to read: |
610 | 288.9015 Enterprise Florida, Inc.; purpose; duties.-- |
611 | (4) Enterprise Florida, Inc., shall incorporate the needs |
612 | of small and minority businesses into the economic-development, |
613 | international-trade and reverse-investment, and workforce- |
614 | development responsibilities assigned to the organization by |
615 | this section. Where practicable and consistent with the |
616 | expertise of the Black Business Investment Board, Inc., |
617 | Enterprise Florida, Inc., shall collaborate contract with the |
618 | Florida Black Business Investment Board, Inc., and the |
619 | Department of Community Affairs corporation for the delivery of |
620 | services in fulfillment of the responsibilities of Enterprise |
621 | Florida, Inc., relating to small and minority businesses. |
622 | Section 15. The Office of Program Policy Analysis and |
623 | Government Accountability shall prepare a status report on the |
624 | initial implementation of the Florida Black Business Investment |
625 | Act by the Department of Community Affairs and shall provide the |
626 | report to the Governor, the President of the Senate, and the |
627 | Speaker of the House of Representatives by December 1, 2007. The |
628 | office shall a conduct a program review of the department's |
629 | performance in meeting the goals of the Florida Black Business |
630 | Investment Act and shall provide a |
631 | report to the Governor, the President of the Senate, and the |
632 | Speaker of the House of Representatives by December 1, 2008. |
633 | Section 16. The Auditor General shall conduct an audit of |
634 | the Florida Black Business Investment Board, Inc.'s, investment |
635 | activity for fiscal years 2001-2002 through 2005-2006 and report |
636 | its findings to the Governor, the President of the Senate, and |
637 | the Speaker of the House of Representatives by January 1, 2007. |
638 | Section 17. Sections 288.7092, 288.7095, 288.71, 288.7101, |
639 | 288.712, and 288.713, Florida Statutes, are repealed. |
640 | Section 18. The sum of $ is appropriated from the |
641 | General Revenue Fund to the Department of Community Affairs for |
642 | the 2006-2007 fiscal year for purposes of implementing and |
643 | administering the Black Business Loan Program, and |
644 | full-time equivalent positions and $ in approved |
645 | salary rate are authorized. |
646 | Section 19. This act shall take effect July 1, 2006. |