HB 1283

1
A bill to be entitled
2An act relating to black business investment; amending s.
314.2015, F.S.; requiring the Office of Tourism, Trade, and
4Economic Development to administer the Black Business Loan
5Program; providing purposes; amending s. 288.702, F.S.;
6revising a short title; amending s. 288.703, F.S.;
7revising the definition of "minority person"; amending s.
8288.706, F.S.; deleting references to the Florida Black
9Business Investment Board, Inc., and black business
10investment corporations from a list of certain financial
11institutions maintained by the Department of Management
12Services; requiring the Department of Management Services
13to collaborate with the Florida Black Business Investment
14Board, Inc., and the Office of Tourism, Trade, and
15Economic Development for certain purposes; creating s.
16288.7065, F.S.; providing a short title; amending s.
17288.707, F.S.; revising provisions creating the Florida
18Black Business Investment Board, Inc.; revising
19legislative findings; creating the board; requiring the
20board to contract with the Office of Tourism, Trade, and
21Economic Development for certain purposes; specifying
22application of public records and public meetings
23requirements; providing for appointment of a board of
24directors; specifying terms of office and experience
25requirements of board members; providing for filling of
26board vacancies; requiring the Governor to appoint a
27chair; providing for meetings; requiring members to serve
28without compensation; providing for reimbursement of
29expenses; requiring members to file a statement of
30financial interests; amending s. 288.708, F.S.; providing
31for appointment and duties of the president of the board;
32deleting a provision specifying prudent use of certain
33funds and requiring use of funds according to applicable
34laws, bylaws, or contracts; applying certain salary
35limitation provisions to employees of the board; requiring
36the Department of Management Services to establish a
37lease-agreement program for board employees; amending s.
38288.709, F.S.; revising the powers of the board; amending
39s. 288.7091, F.S.; revising the duties of the board;
40creating s. 288.7094, F.S.; providing a definition;
41specifying eligibility of certain black business
42investment corporations to participate in the Black
43Business Loan Program; requiring the Office of Tourism,
44Trade, and Economic Development to give priority
45consideration to such corporations for participation in
46the program; creating s. 288.7102, F.S.; establishing the
47Black Business Loan Program in the Office of Tourism,
48Trade, and Economic Development; requiring the office to
49disburse funds appropriated by the Legislature, through
50eligible recipients, to certain black business
51enterprises; providing a legislative finding regarding use
52of state funds received by the board through fiscal year
532005-2006; providing duties and responsibilities of the
54office and the board in administering the program;
55establishing a competitive application and annual
56certification process for eligible recipients for funds to
57provide loans, loan guarantees, and investments to black
58business enterprises; requiring an allocation policy for
59equitable distribution throughout the state; providing
60eligibility requirements for recipients to receive funds
61and to provide loans, loan guarantees, or investments;
62requiring annual certification of eligibility; requiring
63the office to consult with the board; requiring the office
64to adopt rules; requiring the board to adopt policies and
65procedures; creating s. 288.71025, F.S.; providing a
66prohibited act; providing for filing of a civil complaint
67and imposition of a fine; providing for use of funds
68received from such fine; creating s. 288.7103, F.S.;
69providing black business enterprise eligibility
70requirements for receiving loans, loan guarantees, or
71investments; amending s. 288.711, F.S.; renaming the
72Florida Investment Incentive Trust Fund as the Florida
73Black Business Loan Program Trust Fund; placing the fund
74in the Office of Tourism, Trade, and Economic Development
75for purposes of implementing and administering the Black
76Business Loan Program; deleting provisions relating to
77authorizations for the board to make investments from the
78fund for certain purposes; revising purposes for which a
79black business investment corporation is authorized to use
80funds received from the fund; amending s. 288.712, F.S.;
81revising provisions relating to guarantor funds to assist
82qualified black business enterprises obtain surety bonds
83and other credit instruments; authorizing board to
84contract with regulated surety companies; revising uses of
85the Black Contractors Bond Trust Fund and the Black
86Contractors Bond Program Administrative and Loss Reserve
87Fund; eliminating the Black Business Loan Guaranty Trust
88Fund; revising board exceptions to laws and rules related
89to a guaranty company; requiring board adoption of
90policies and procedures relating to board guarantee of
91loss and to required payment of premiums; authorizing
92contracting with private entity to administer black
93contractors bonding program; delineating board use of a
94surety bond company; delineating board requirements for
95encouraging program participation; amending s. 288.714,
96F.S.; requiring recipients to provide quarterly and annual
97reports; specifying report requirements; requiring the
98board to submit an annual program report to the Governor
99and Legislature; specifying report requirements; requiring
100certain black business investment corporations to submit
101quarterly reports to the board on uses of certain state
102funds; specifying report requirements; amending s.
103288.9015, F.S.; requiring Enterprise Florida, Inc., to
104collaborate with the Florida Black Business Investment
105Board, Inc., and the Office of Tourism, Trade, and
106Economic Development for certain purposes; requiring the
107Office of Program Policy Analysis and Government
108Accountability to submit a status report to the Governor
109and Legislature on the Office of Tourism, Trade, and
110Economic Development's implementation of the Florida Black
111Business Investment Act; requiring the Office of Program
112Policy Analysis and Government Accountability to conduct a
113program review of the Office of Tourism, Trade, and
114Economic Development's performance in meeting goals of the
115Florida Black Business Investment Act and to submit a
116program review report to the Governor and Legislature;
117amending s. 288.90151, F.S.; correcting a cross reference;
118repealing s. 288.7092, F.S., relating to return on
119investment from activities of the corporation; repealing
120s. 288.7095, F.S., relating to duties of black business
121investment corporations; repealing s. 288.71, F.S.,
122relating to conditions for board action; repealing s.
123288.7101, F.S., relating to the state employee leasing
124program of the Department of Management Services for
125employees of the Florida Black Business Investment Board,
126Inc.; repealing s. 288.713, F.S., relating to capital
127participation instruments; providing an appropriation and
128authorizing certain positions; providing an effective
129date.
130
131Be It Enacted by the Legislature of the State of Florida:
132
133     Section 1.  Paragraphs (g), (h), (i), and (j) of subsection
134(2) of section 14.2015, Florida Statutes, are redesignated as
135paragraphs (h), (i), (j), and (k), respectively, and a new
136paragraph (g) is added to that subsection, to read:
137     14.2015  Office of Tourism, Trade, and Economic
138Development; creation; powers and duties.--
139     (2)  The purpose of the Office of Tourism, Trade, and
140Economic Development is to assist the Governor in working with
141the Legislature, state agencies, business leaders, and economic
142development professionals to formulate and implement coherent
143and consistent policies and strategies designed to provide
144economic opportunities for all Floridians. To accomplish such
145purposes, the Office of Tourism, Trade, and Economic Development
146shall:
147     (g)  Administer the Black Business Loan Program, the
148purpose of which is to leverage state, local, and private funds
149to provide loans and loan guarantees to black business
150enterprises that cannot obtain capital through conventional
151lending institutions but that otherwise could compete
152successfully in the private sector.
153     Section 2.  Section 288.702, Florida Statutes, is amended
154to read:
155     288.702  Short title.--This section and sections 288.703-
156288.703-288.706 This act shall be known and may be cited as the
157"Florida Small and Minority Business Assistance Act of 1985."
158     Section 3.  Paragraph (a) of subsection (3) of section
159288.703, Florida Statutes, is amended to read:
160     288.703  Definitions.--As used in this act, the following
161words and terms shall have the following meanings unless the
162content shall indicate another meaning or intent:
163     (3)  "Minority person" means a lawful, permanent resident
164of Florida who is:
165     (a)  An African American, a person having origins in any of
166the black racial groups of the African Diaspora, regardless of
167cultural origin.
168     Section 4.  Subsection (11) of section 288.706, Florida
169Statutes, is amended, and subsection (12) is added to that
170section, to read:
171     288.706  Florida Minority Business Loan Mobilization
172Program.--
173     (11)  The Department of Management Services shall maintain
174a listing of financial institutions willing to participate in
175the Florida Minority Business Loan Mobilization Program, which
176may include the Florida Black Business Investment Board, Inc.,
177and black business investment corporations. This list of
178financial institutions shall not be exclusive. A minority
179business enterprise vendor who has a working relationship with a
180financial institution is encouraged to request that the
181financial institution apply to participate as a financial
182institution for the program.
183     (12)  The Department of Management Services shall
184collaborate with the Florida Black Business Investment Board,
185Inc., and the Office of Tourism, Trade, and Economic Development
186to assist in the development and enhancement of black business
187enterprises.
188     Section 5.  Section 288.7065, Florida Statutes, is created
189to read:
190     288.7065  Short title.--This section and sections 288.707-
191288.707-288.714 may be cited as the "Florida Black Business
192Investment Act."
193     Section 6.  Section 288.707, Florida Statutes, is amended
194to read:
195(Substantial rewording of section. See
196s. 288.707, F.S., for present text.)
197     288.707  Florida Black Business Investment Board, Inc.;
198findings; creation; membership; organization; meetings;
199disclosure.--
200     (1)  The Legislature finds that the public interest of the
201state will be served by the creation of a not-for-profit public-
202private entity the primary mission of which shall be to assist
203in the development and expansion of black business enterprises
204by:
205     (a)  Advising the Office of Tourism, Trade, and Economic
206Development in its oversight of the Black Business Loan Program
207and creating long-range strategic policy for the program.
208     (b)  Evaluating the unmet need for capital by black
209business enterprises in the state.
210     (c)  Creating partnerships between state and local
211governments and private enterprises to aid in the development
212and expansion of black business enterprises.
213     (d)  Providing a network of information resources for black
214business enterprises and providing technical assistance through
215this network.
216     (2)(a)  There is created a not-for-profit corporation to be
217known as the "Florida Black Business Investment Board, Inc.,"
218referred to in ss. 288.707-288.714 as the board, which shall be
219registered, incorporated, organized, and operated in compliance
220with chapter 617 and shall not be a unit or entity of state
221government. The Legislature determines, however, that public
222policy dictates that the board operate in the most open and
223accessible manner consistent with its public purpose. Therefore,
224the Legislature specifically declares that the board and its
225advisory committees or similar groups created by the board,
226including any subsidiaries, are subject to the provisions of
227chapter 119, relating to public records, and the provisions of
228chapter 286, relating to public meetings and records.
229     (b)  The board shall contract with the Office of Tourism,
230Trade, and Economic Development to implement the provisions of
231ss. 288.707-288.714.
232     (3)  The board shall be governed by a board of directors
233chosen as follows:
234     (a)  Five members appointed by the Governor who shall serve
235terms of 4 years each, except that in making initial
236appointments, the Governor shall appoint three members to serve
237for terms of 2 years each and two members to serve for terms of
2383 years each.
239     (b)  One member appointed by the President of the Senate
240who shall serve a term of 2 years.
241     (c)  One member appointed by the Speaker of the House of
242Representatives who shall serve a term of 2 years.
243     (d)  The vice chair of Enterprise Florida, Inc., or his or
244her designee.
245     (e)  The chair of the Florida Development Finance
246Corporation created pursuant to s. 288.9604.
247     (f)  Four presidents of participating black business
248investment corporations who shall be appointed by the Executive
249Director of the Office of Tourism, Trade, and Economic
250Development upon the recommendation of the Florida Consortium of
251Black Business Investment Corporations, Inc., to serve for terms
252of 3 years each. Each shall be eligible for reappointment to one
253additional term of 3 years.
254     (4)  Members of the board must have experience in business,
255including financial services, banking, or economic development.
256At least one of the Governor's appointees must have experience
257in venture capitalism.
258     (5)  Any person appointed to fill a vacancy on the board
259shall be appointed in a like manner and shall serve for only the
260remainder of the unexpired term. Any member shall be eligible
261for reappointment.
262     (6)  The Governor shall appoint the chairperson, who shall
263be a member of the board and shall serve at the pleasure of the
264Governor. The board shall annually elect one of its members as
265vice chairperson.
266     (7)  The board shall meet at least four times annually upon
267the call of the chair or vice chair or at the request of a
268majority of the membership. A majority of the total number of
269current members of the board shall constitute a quorum. The
270board may take official action by a majority vote of the members
271present at any meeting at which a quorum is present.
272     (8)  Members of the board shall serve without compensation,
273but members, the president of the board, and other board
274employees may be reimbursed for all reasonable, necessary, and
275actual expenses as determined and approved by the board.
276     (9)  Each member of the board who is not otherwise required
277to disclose financial interests pursuant to s. 8, Art. II of the
278State Constitution or s. 112.3144 shall file a statement of
279financial interests pursuant to s. 112.3145.
280     Section 7.  Section 288.708, Florida Statutes, is amended
281to read:
282     288.708  President; employees.--
283     (1)  The president of the board corporation, who may also
284be designated as secretary-treasurer, shall be appointed by the
285board and shall serve at the pleasure of the board. The board
286shall establish and adjust the compensation of the president.
287The president shall be the chief administrative and operational
288officer of the board corporation and shall direct and supervise
289administrative affairs and the general management of the board
290corporation. The board may delegate to its president those
291powers and responsibilities it deems appropriate, except for
292appointment of the president. The president:
293     (a)  May contract with or employ legal and technical
294experts and such other employees, permanent and temporary, as
295shall be authorized by the board;
296     (b)  Shall attend meetings of the board; and
297     (c)  Shall cause copies to be made of all minutes and other
298records and documents of the board and shall certify that such
299copies are true copies. All persons dealing with the corporation
300or board may rely upon such certification.
301     (2)  The corporation and its officers and board members are
302responsible for the prudent use of all public and private funds
303and shall ensure that the use of such funds is in accordance
304with all applicable laws, bylaws, or contractual requirements.
305An employee of the board corporation may not receive
306compensation for employment that exceeds the salary paid to the
307Governor, unless the board corporation and the employee have
308executed a contract that prescribes specific and measurable
309performance outcomes for the employee, the satisfaction of which
310provides the basis for the award of incentive payments that
311increase the employee's total compensation to a level above the
312salary paid to the Governor. The Department of Management
313Services shall establish a lease-agreement program under which
314an employee of the board, as of June 30, 2002, retains his or
315her status as a state employee until the employee voluntarily or
316involuntarily terminates his or her status with the board.
317Status as a state employee shall include the right to
318participate in the Florida Retirement System.
319     Section 8.  Section 288.709, Florida Statutes, is amended
320to read:
321     288.709  Powers of the Florida Black Business Investment
322Board, Inc.--The board shall have all the powers granted under
323chapter 617 and any powers necessary or convenient to carry out
324and effectuate the purposes and provisions of ss. 288.707-
325288.714, including, but not limited to, the power to:
326     (1)  Adopt bylaws for the regulation of its affairs and the
327conduct of its business and adopt policies to implement the
328provisions of law conferring duties upon it. The Such bylaws
329shall provide that the board corporation is subject to the
330requirements of s. 24, Art. I of the State Constitution and
331chapter 119 and s. 286.011.
332     (2)  Adopt an official seal.
333     (3)  Sue and be sued in its own name.
334     (4)  Make and execute contracts and other instruments
335necessary or convenient for the exercise of its power and
336functions.
337     (5)  Acquire, hold, and dispose of personal property for
338its corporate purposes.
339     (2)(6)  Enter into agreements or other transactions with
340any federal, state, or local agency or private entity.
341     (7)  Encourage financial institutions to participate in
342consortia for the purpose of investing in black business
343enterprises.
344     (8)  Ensure that funds available to the board for purposes
345set forth in ss. 288.707-288.714 are disbursed on a statewide
346basis and are not concentrated in one geographical area.
347     (3)(9)  Invest any funds held in reserves or sinking funds,
348or any funds not required for immediate disbursement, in such
349investments as may be authorized for trust funds under s.
350215.47; however, such investments will be made on behalf of the
351board by the Chief Financial Officer or by another trustee
352appointed for that purpose.
353     (4)(10)  Appear in its own behalf before boards,
354commissions, departments, or other agencies of municipal,
355county, state, or Federal Government.
356     (11)  Procure insurance or require bond against any loss in
357connection with its property in such amounts and from such
358insurers as may be necessary or desirable.
359     (5)(12)  Apply for, accept, and disburse from any state or
360nonstate source Receive and accept from any federal, state, or
361local agency grants, loans, or advances for, or in aid of, the
362purposes of ss. 288.707-288.714, and to receive and accept
363contributions from any source of either money, property, labor,
364or other things of value, to be held, used, and applied for said
365purposes.
366     (13)  Create, issue, and buy and sell stock, evidences of
367indebtedness, and other capital participation instruments; to
368hold such stock, evidences of indebtedness, and capital
369participation instruments; and to underwrite the creation of a
370capital market for these securities in a manner designed to
371enhance development of capital ownership in the target group.
372     (6)(14)  Provide and pay for such advisory services and
373technical assistance as may be necessary or desirable to carry
374out the purposes of this act.
375     (7)(15)  Engage in special programs to enhance the
376development of black business enterprises as authorized by this
377act.
378     (16)  Promote black ownership of financial institutions in
379Florida.
380     (17)  Take, hold, and improve property, including real
381property.
382     (18)  Do any and all things necessary or convenient to
383carry out the purposes of, and exercise the powers given and
384granted in, ss. 288.707-288.714, and exercise any other powers,
385rights, or responsibilities of a corporation.
386     (8)(19)  In addition to any indemnification available under
387chapter 617, indemnify, and purchase and maintain insurance on
388behalf of, directors, officers, and employees of the board
389corporation and its boards against any personal liability or
390accountability by reason of actions taken while acting within
391the scope of their authority.
392     (9)(20)  Provide in its bylaws that, upon the dissolution
393of the board corporation, all of its assets acquired through the
394use of state funds, after payment of all legal debts and
395liabilities, revert to the this state.
396     Section 9.  Section 288.7091, Florida Statutes, is amended
397to read:
398(Substantial rewording of section. See
399s. 288.7091, F.S., for present text.)
400     288.7091  Duties of the Florida Black Business Investment
401Board, Inc.--The board shall:
402     (1)  Serve as an advisory board to the Office of Tourism,
403Trade, and Economic Development, through contract with the
404office, to assist the office with the implementation of ss.
405288.707-288.714.
406     (2)  Aid the development and expansion of black business
407enterprises by leveraging state, local, and private funds to be
408held by the board for use according to the provisions of ss.
409288.707-288.714.
410     (3)  Serve as the clearinghouse for information and sources
411of technical assistance that will enhance the development and
412expansion of black business enterprises and facilitate the
413provision of technical assistance in communities in which such
414services are otherwise underserved.
415     (4)  Aggressively market the Black Business Loan Program
416and related services to black business enterprises through all
417appropriate media outlets, including media targeting the
418African-American community.
419     (5)  Collaborate with Enterprise Florida, Inc., or its
420affiliates to develop and expand black business enterprises.
421     (6)  Collaborate with the Department of Transportation, the
422Department of Management Services, including the Florida
423Minority Business Loan Mobilization Program, Workforce Florida,
424Inc., and other state agencies and partners, the State
425University System, including the Florida Agricultural and
426Mechanical University's Institute of Urban Policy and Commerce,
427school boards, and local governments to create a network of
428information and to identify available resources to enhance the
429development and expansion of black business enterprises.
430     (7)  Develop strategies to increase financial institution
431investment in black business enterprises.
432     (8)  Provide a 5-year projection of the need for capital by
433black business enterprises. The board may contract with an
434independent entity to prepare the projection once every 5 years.
435     (9)  Annually provide for a financial audit, as defined in
436s. 11.45, of the board's accounts and records by an independent
437certified public accountant. The audit shall include an
438explanation of all investments made by the board and an
439explanation of administrative costs. Within 6 months after the
440end of the fiscal year, the audit report shall be provided to
441the Governor, the President of the Senate, the Speaker of the
442House of Representatives, and the Auditor General.
443     Section 10.  Section 288.7094, Florida Statutes, is created
444to read:
445     288.7094  Black business investment corporations.--
446     (1)  The term "black business investment corporation" means
447a corporation that provides loans, loan guarantees, or
448investments to black business enterprises under ss. 288.707-
449288.714.
450     (2)  A black business investment corporation that meets the
451requirements of s. 288.7102(3) is eligible to participate in the
452Black Business Loan Program and shall receive priority
453consideration by the Office of Tourism, Trade, and Economic
454Development for participation in the program.
455     Section 11.  Section 288.7102, Florida Statutes, is created
456to read:
457     288.7102  Black Business Loan Program.--The Black Business
458Loan Program is established in the Office of Tourism, Trade, and
459Economic Development. Under the program, the office shall
460disburse funds appropriated by the Legislature, through eligible
461recipients, to black business enterprises that cannot obtain
462capital through conventional lending institutions but that could
463otherwise compete successfully in the private sector. In
464creating this program, the Legislature finds that the public
465interest of the state has been served with respect to the use of
466any state funds received by the Florida Black Business
467Investment Board, Inc., and any black business investment
468corporation prior to and through fiscal year 2005-2006.
469     (1)  The board shall establish a uniform, open, and
470competitive application and annual certification process for
471eligible recipients who seek funds to provide loans, loan
472guarantees, or investments to black business enterprises
473pursuant to the Florida Black Business Investment Act.
474     (2)  The office, in consultation with the board, shall
475develop an allocation policy to ensure that services provided
476under ss. 288.707-288.714 for the benefit of black business
477enterprises are disbursed equitably throughout the state. The
478board shall facilitate the formation of black business
479investment corporations in communities that are not served by
480such corporations.
481     (3)  To be eligible to receive funds and provide loans,
482loan guarantees, or investments under this section, a recipient
483must:
484     (a)  Be a corporation registered in the state.
485     (b)  Demonstrate that its board of directors includes
486citizens of the state experienced in the development of black
487business enterprises.
488     (c)  Demonstrate that the recipient has a business plan
489that allows the recipient to operate in a manner consistent with
490ss. 288.707-288.714 and the rules of the office.
491     (d)  Demonstrate that the recipient has the technical
492skills to analyze and evaluate applications by black business
493enterprises for loans, loan guarantees, or investments.
494     (e)  Demonstrate that the recipient has established viable
495partnerships with public and private funding sources, economic
496development agencies, and workforce development and job referral
497networks.
498     (f)  Demonstrate that the recipient can provide a private
499match equal to 20 percent of the amount of funds provided by the
500office.
501     (g)  Agree to maintain the recipient's books and records
502relating to funds received by the office according to generally
503accepted accounting principles and in accordance with the
504requirements of s. 215.97(7) and to make those books and records
505available to the office for inspection upon reasonable notice.
506     (4)  The board shall annually certify each eligible
507recipient, who must meet the provisions of ss. 288.707-288.714,
508the terms of the contract between the recipient and the office,
509and any other applicable state or federal laws. An entity may
510not receive funds under ss. 288.707-288.714 unless the entity
511meets annual certification requirements.
512     (5)  The office shall consult with the board in
513implementing the provisions of this section.
514     (6)(a)  The office, in consultation with the board, shall
515adopt rules pursuant to ss. 120.536(1) and 120.54 to implement
516this section.
517     (b)  The board shall adopt policies and procedures
518necessary to implement this section.
519     Section 12.  Section 288.71025, Florida Statutes, is
520created to read:
521     288.71025  Prohibited acts; penalties.--
522     (1)  It is unlawful for any person to hold itself out as a
523black business investment corporation without being certified by
524the board as eligible to participate in the Florida Black
525Business Loan Program.
526     (2)  The board may file a civil complaint and impose a fine
527of $500 on any person violating subsection (1). Any funds
528received from such fines shall be appropriated to the board for
529any and all of the purposes and uses provided in the Florida
530Black Business Investment Act.
531     Section 13.  Section 288.7103, Florida Statutes, is created
532to read:
533     288.7103  Eligibility for loan, loan guarantee, or
534investment.--A black business enterprise is not eligible to
535receive a loan, loan guarantee, or investment unless the black
536business enterprise demonstrates that:
537     (1)  The proposed loan, loan guarantee, or investment is
538economically sound and will assist the black business enterprise
539in entering the conventional lending market, increasing
540opportunities for employment, and strengthening the economy of
541the state.
542     (2)  The black business enterprise will be able to compete
543successfully in the private sector if the black business
544enterprise obtains the requested financial assistance and has
545obtained or will obtain appropriate and credible technical or
546managerial support through an organization approved by the
547corporation.
548     Section 14.  Section 288.711, Florida Statutes, is amended
549to read:
550     288.711  Florida Black Business Loan Program Investment
551Incentive Trust Fund.--
552     (1)  There is hereby created the Florida Black Business
553Loan Program Investment Incentive Trust Fund in the Office of
554Tourism, Trade, and Economic Development for the purpose of
555providing loans or loan guarantees under the Black Business Loan
556Program as provided in s. 288.7102 from which money may be drawn
557for loans, loan guarantees, or investments or loans, as
558authorized by this section, to encourage the development of
559appropriate financial mechanisms in the private sector to
560capitalize and assist in the development of black business
561enterprises. All income earned by investments of the fund shall
562be deposited in the fund for carrying out the purposes of ss.
563288.707-288.714. Administrative costs of the program shall be
564appropriated in a lump-sum appropriation from the fund created
565herein and shall be provided in the General Appropriations Act.
566     (2)  A black business investment corporation is authorized
567to use funds received from the Florida Black Business Loan
568Program Trust Fund in The board is authorized to invest from the
569Florida Investment Incentive Trust Fund in black business
570investment corporations which conduct, or agree to conduct,
571programs of assisting the development of black business
572enterprises. Such investments shall be made under conditions
573required by law and as the board may, from time to time, require
574and may take any of the following forms:
575     (a)  Purchases of stock, preferred or common, voting or
576nonvoting, as determined by the board; however, no more than 40
577percent of the funds may be used for direct investments in black
578business enterprises;
579     (b)  Loans or loan guarantees, with or without recourse, in
580either a subordinated or priority position, as determined by the
581board; provided, however, that no more than 20 percent of the
582capital base may be used for direct loans to black business
583enterprises; or
584     (c)  Technical support to black business enterprises, not
585to exceed 7 percent of the funds received, and direct
586administrative costs, not to exceed 10 percent of the funds
587received Any other investment authorized by the board based on
588the expertise of its members.
589     (3)  It is the intent of the Legislature that if any one
590type of investment mechanism authorized in subsection (2) is
591held to be invalid all other valid mechanisms remain available.
592     (4)  All loans, loan guarantees, and investments, and any
593income related thereto, shall be used to carry out the public
594purpose of ss. 288.707-288.714, which is to develop black
595business enterprises. This is not meant to preclude a reasonable
596profit for the participating black business investment
597corporation or for return of equity developed to the state and
598participating financial institutions upon any distribution of
599the assets or excess income of the investment corporation.
600     Section 15.  Section 288.712, Florida Statutes, is amended
601to read:
602(Substantial rewording of section. See
603s. 288.712, F.S., for present text.)
604     288.712  Guarantor funds.--
605     (1)  The board is authorized to establish, with or without
606public or private partners, guarantor funds to assist qualified
607black business enterprises in obtaining surety bonds and other
608credit instruments when required.
609     (2)  The board may contract with a regulated surety company
610to conduct a surety bond program for black business enterprises.
611     (3)  There is hereby created the Black Contractors Bond
612Trust Fund. For purposes of this section, the board may utilize
613the Black Contractors Bond Trust Fund, consisting of moneys
614deposited or credited to the Black Contractors Bond Trust Fund
615pursuant to any appropriation made by law; any grants, gifts,
616and contributions received pursuant to ss. 288.707-288.714; all
617moneys recovered following defaults; and any other moneys
618obtained by the board for this purpose. The fund shall be
619administered by the board in trust for the purposes of this
620section and shall at no time be part of general public funds
621under the following procedures:
622     (a)  Any claims against the state arising from defaults
623shall be payable from the Black Contractors Bond Program
624Administrative and Loss Reserve Fund as provided in this section
625or from the Black Contractors Bond Trust Fund. Nothing in this
626section grants or pledges to any obligee or other person any
627state moneys other than the moneys in the Black Contractors Bond
628Program Administrative and Loss Reserve Fund or the Black
629Contractors Bond Trust Fund.
630     (b)  There is hereby created the Black Contractors Bond
631Program Administrative and Loss Reserve Fund, consisting of all
632premiums charged and collected in accordance with this section
633and any interest income earned from the moneys in the Black
634Contractors Bond Trust Fund.
635     (c)  The board may guarantee bonds executed by sureties for
636black business enterprises under this section as principals on
637contracts with the state, any political subdivision or
638instrumentality, or any person as the obligee. The board, as
639guarantor, may exercise all the rights and powers of a company
640authorized by the Department of Financial Services to guarantee
641bonds under chapter 624, but otherwise is not subject to any
642laws related to a guaranty company under chapter 624 or to any
643rules of the department.
644     (d)  The board shall adopt policies and procedures for the
645application for bond guarantees and for the review and approval
646of applications for bond guarantees submitted by sureties that
647execute bonds eligible for guarantees under this section.
648     (e)  In accordance with the policies and procedures adopted
649pursuant to this section, the board may guarantee up to 90
650percent of the loss incurred and paid by sureties on bonds
651guaranteed under this section.
652     (f)  The policies and procedures of the board shall require
653the black business enterprise to pay a premium in advance for
654the bond to be established by the board. All premiums paid by
655the black business enterprise shall be paid into the Black
656Contractors Bond Program Administrative and Loss Reserve Fund.
657     (g)  The penal sum amounts of all outstanding bonds issued
658by the board shall not exceed the amount of moneys in the Black
659Contractors Bond Trust Fund.
660     (h)  Any funds to the credit of the Black Contractors Bond
661Program Administrative and Loss Reserve Fund in excess of the
662amount necessary to fund the appropriation authority for the
663fund shall be held as a loss reserve to pay claims arising from
664defaults on surety bonds guaranteed in accordance with this
665section. If the balance of funds in the Black Contractors Bond
666Administrative and Loss Reserve Fund is insufficient to pay a
667claim against the state arising from default, then the claim
668shall be payable from the Black Contractors Bond Trust Fund.
669     (4)  Nothing in this section shall be construed to prohibit
670or restrict the board from entering into a joint venture or
671other contractual agreement with a private insurer or to invest
672in a private entity to handle all or part of a black contractors
673bonding program for black business enterprises. The board is
674authorized and encouraged to contract with a regulated surety
675company to conduct a surety bond program for black business
676enterprises. Moneys from the Black Contractors Bond Trust Fund
677may be used for these purposes. The board may approve one
678application per fiscal year from each surety company to support
679one fiscal year of that company's activities under this section.
680A surety bond company that applies for a bond guarantee under
681this section, regardless of whether the guarantee is approved,
682is not restricted from also applying for individual bond
683guarantees under this section.
684     (5)  The board shall do all of the following to implement
685the black contractors bonding program:
686     (a)  Conduct outreach, marketing, and recruitment of black
687contractors.
688     (b)  Provide assistance to the Office of Supplier Diversity
689within the Department of Management Services, as needed, to
690certify new black business enterprises and to train appropriate
691department staff.
692     (c)  Provide business development services to black
693business enterprises in the developmental and transitional
694stages of the program, including financing and bonding
695assistance and management and technical assistance.
696     (d)  Develop a mentor program to bring businesses into a
697working relationship with black contractors in a way that
698commercially benefits both entities and serves the purpose of
699the program.
700     (e)  No later than December 31, 2007, prepare and submit to
701the Governor a detailed report outlining and evaluating the
702progress made in implementing the black contractors bonding
703program.
704     (f)  Establish a process by which black contractors may
705apply for contract assistance, financial and bonding assistance,
706management and technical assistance, and mentoring
707opportunities.
708     Section 16.  Section 288.714, Florida Statutes, is amended
709to read:
710(Substantial rewording of section. See
711s. 288.714, F.S., for present text.)
712     288.714  Quarterly and annual reports.--
713     (1)  Each recipient of state funds under ss.
714288.707-288.712 shall provide to the board a quarterly report
715within 15 days after the end of each calendar quarter that
716includes a detailed summary of the recipient's performance of
717the duties imposed by ss. 288.707-288.712, including, but not
718limited to:
719     (a)  The dollar amount of all loans or loan guarantees made
720to black business enterprises, the percentages of the loans
721guaranteed, and the names and identification of the types of
722businesses served.
723     (b)  Loan performance information.
724     (c)  The amount and nature of all other financial
725assistance provided to black business enterprises.
726     (d)  The amount and nature of technical assistance provided
727to black business enterprises, including technical assistance
728services provided in areas in which such services are otherwise
729unavailable.
730     (e)  A balance sheet for the recipient, including an
731explanation of all investments and administrative and
732operational expenses.
733     (f)  A summary of all services provided to non-black
734business enterprises, including the dollar value and nature of
735such services and the names and identification of the types of
736businesses served.
737     (g)  Any other information as required by the board by
738rule.
739     (2)  By May 1 of each year, the board shall provide to the
740Governor, the President of the Senate, and the Speaker of the
741House of Representatives a detailed report of the performance of
742the Black Business Loan Program, including:
743     (a)  A cumulative summary of quarterly report data required
744by subsection (1).
745     (b)  A description of the strategies implemented by the
746board to increase private investment in black business
747enterprises.
748     (c)  A summary of the board's performance of its duties
749under ss. 288.707-288.712.
750     (d)  The most recent 5-year projection of the need for
751capital by black business enterprises.
752     (e)  Recommendations for legislative or other changes to
753enhance the development and expansion of black business
754enterprises in the state.
755     (f)  A projection of the program's activities during the
756next 12 months.
757     Section 17.  Subsection (4) of section 288.9015, Florida
758Statutes, is amended to read:
759     288.9015  Enterprise Florida, Inc.; purpose; duties.--
760     (4)  Enterprise Florida, Inc., shall incorporate the needs
761of small and minority businesses into the economic-development,
762international-trade and reverse-investment, and workforce-
763development responsibilities assigned to the organization by
764this section. Where practicable and consistent with the
765expertise of the Black Business Investment Board, Inc.,
766Enterprise Florida, Inc., shall collaborate contract with the
767Florida Black Business Investment Board, Inc., and the Office of
768Tourism, Trade, and Economic Development corporation for the
769delivery of services in fulfillment of the responsibilities of
770Enterprise Florida, Inc., relating to small and minority
771businesses.
772     Section 18.  The Office of Program Policy Analysis and
773Government Accountability shall prepare a status report on the
774initial implementation of the Florida Black Business Investment
775Act by the Office of Tourism, Trade, and Economic Development
776and shall provide the report to the Governor, the President of
777the Senate, and the Speaker of the House of Representatives by
778December 1, 2008. The office shall a conduct a program review of
779the Office of Tourism, Trade, and Economic Development's
780performance in meeting the goals of the Florida Black Business
781Investment Act and shall provide a report to the Governor, the
782President of the Senate, and the Speaker of the House of
783Representatives by December 1, 2009.
784     Section 19.  Subsection (6) of section 288.90151, Florida
785Statutes, is amended to read:
786     288.90151  Return on investment from activities of
787Enterprise Florida, Inc.--
788     (6)  Enterprise Florida, Inc., shall fully comply with the
789performance measures, standards, and sanctions in its contracts
790with the Office of Tourism, Trade, and Economic Development
791under s. 14.2015(2)(i)(h) and (7). The Office of Tourism, Trade,
792and Economic Development shall ensure, to the maximum extent
793possible, that the contract performance measures are consistent
794with performance measures that the office is required to develop
795and track under performance-based program budgeting.
796     Section 20.  Sections 288.7092, 288.7095, 288.71, 288.7101,
797and 288.713, Florida Statutes, are repealed.
798     Section 21.  The sum of $8.5 million is appropriated from
799the General Revenue Fund to the Office of Tourism, Trade, and
800Economic Development for the 2007-2008 fiscal year for purposes
801of implementing and administering the Black Business Loan
802Program, and 3 full-time equivalent positions and $500,000 for
803operation are authorized.
804     Section 22.  This act shall take effect July 1, 2007.


CODING: Words stricken are deletions; words underlined are additions.