| 1 | Representative Murzin offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Remove everything after the enacting clause and insert: |
| 5 | Section 1. Section 288.1081, Florida Statutes, is created |
| 6 | to read: |
| 7 | 288.1081 Economic Gardening Business Loan Pilot Program.-- |
| 8 | (1) There is created within the Office of Tourism, Trade, |
| 9 | and Economic Development the Economic Gardening Business Loan |
| 10 | Pilot Program. The purpose of the pilot program is to stimulate |
| 11 | investment in Florida's economy by providing loans to expanding |
| 12 | businesses in the state. As used in this section, the term |
| 13 | "office" means the Office of Tourism, Trade, and Economic |
| 14 | Development. |
| 15 | (2) The Legislature finds that it is vital to the overall |
| 16 | health and growth of the state's economy to promote favorable |
| 17 | conditions for expanding Florida businesses that demonstrate the |
| 18 | ability to grow. The Legislature further finds that, due to the |
| 19 | current extraordinary economic challenges confronting the state, |
| 20 | there exists a paramount public purpose in expending state |
| 21 | resources to stimulate investment in Florida's economy. It is |
| 22 | therefore the intent of the Legislature that resources be |
| 23 | provided for the pilot program. |
| 24 | (3)(a) To be eligible for a loan under the pilot program, |
| 25 | an applicant must be a business eligible for assistance under |
| 26 | the Economic Gardening Technical Assistance Pilot Program as |
| 27 | provided in s. 288.1082(4)(a). |
| 28 | (b) A loan applicant must submit a written application to |
| 29 | the loan administrator in the format prescribed by the loan |
| 30 | administrator. The application must include: |
| 31 | 1. The applicant's federal employer identification number, |
| 32 | unemployment account number, and sales or other tax registration |
| 33 | number. |
| 34 | 2. The street address of the applicant's principal place |
| 35 | of business in this state. |
| 36 | 3. A description of the type of economic activity, |
| 37 | product, or research and development undertaken by the |
| 38 | applicant, including the six-digit North American Industry |
| 39 | Classification System code for each type of economic activity |
| 40 | conducted by the applicant. |
| 41 | 4. The applicant's annual revenue, number of employees, |
| 42 | number of full-time equivalent employees, and other information |
| 43 | necessary to verify the applicant's eligibility for the pilot |
| 44 | program under s. 288.1082(4)(a). |
| 45 | 5. The projected investment in the business, if any, that |
| 46 | the applicant proposes in conjunction with the loan. |
| 47 | 6. The total investment in the business from all sources, |
| 48 | if any, that the applicant proposes in conjunction with the |
| 49 | loan. |
| 50 | 7. The number of net new full-time equivalent jobs that, |
| 51 | as a result of the loan, the applicant proposes to create in |
| 52 | this state as of December 31 of each year and the average annual |
| 53 | wage of the proposed jobs. |
| 54 | 8. The total number of full-time equivalent employees the |
| 55 | applicant currently employs in this state. |
| 56 | 9. The date that the applicant anticipates it needs the |
| 57 | loan. |
| 58 | 10. A detailed explanation of why the loan is needed to |
| 59 | assist the applicant in expanding jobs in the state. |
| 60 | 11. A statement that all of the applicant's available |
| 61 | corporate assets are pledged as collateral for the amount of the |
| 62 | loan. |
| 63 | 12. A statement that the applicant, upon receiving the |
| 64 | loan, agrees not to seek additional long-term debt without prior |
| 65 | approval of the loan administrator. |
| 66 | 13. A statement that the loan is a joint obligation of the |
| 67 | business and of each person who owns at least 20 percent of the |
| 68 | business. |
| 69 | 14. Any additional information requested by the office or |
| 70 | the loan administrator. |
| 71 | (c) The loan administrator, after verifying the accuracy |
| 72 | of a submitted application, shall award the loan to the |
| 73 | applicant if the administrator determines that the applicant, as |
| 74 | compared to other applicants submitting applications, is in the |
| 75 | best position to use the loan to continue making a successful |
| 76 | long-term business commitment to the state. |
| 77 | (d) A borrower awarded a loan under this section and the |
| 78 | loan administrator must enter into a loan agreement that |
| 79 | provides for the borrower's repayment of the loan. |
| 80 | (4) The following terms apply to a loan received under the |
| 81 | pilot program: |
| 82 | (a) The maximum amount of the loan is $250,000. |
| 83 | (b) The proceeds of the loan may be used only for working |
| 84 | capital purchases, employee training, or salaries for newly |
| 85 | created jobs in the state. |
| 86 | (c) The security interest for the loan's collateral must |
| 87 | pledge all of the borrower's available corporate assets to cover |
| 88 | the amount of the loan and must be perfected by recording a lien |
| 89 | under the Uniform Commercial Code. |
| 90 | (d) The period of the loan may not exceed 7 years. |
| 91 | (e) The interest rate of the loan is 2 percent. However, |
| 92 | if the borrower does not create the projected number of jobs |
| 93 | within 24 months after the loan is issued, the interest rate |
| 94 | shall be increased for the remaining period of the loan to the |
| 95 | prime rate published in the Wall Street Journal, as of the date |
| 96 | specified in the loan agreement, plus 4 percent. |
| 97 | (f) For each month of the first 12 months of the loan, |
| 98 | payment is due for interest only. Thereafter, payment for |
| 99 | interest and principal is due each month until the loan is |
| 100 | repaid in full. Interest and principal payments are based on the |
| 101 | unpaid balance of the total loan amount. |
| 102 | (g) The borrower must remit payments to the loan |
| 103 | administrator within the first 10 days of each month. The loan |
| 104 | administrator shall charge the borrower a penalty for late |
| 105 | payments, and the amount of the penalty must be specified in the |
| 106 | loan agreement. |
| 107 | (5)(a) The office may designate one or more qualified |
| 108 | entities to serve as loan administrators for the pilot program. |
| 109 | A loan administrator must: |
| 110 | 1. Be a Florida corporation not for profit incorporated |
| 111 | under chapter 617 that has its principal place of business in |
| 112 | the state. |
| 113 | 2. Have 5 years of verifiable experience of lending to |
| 114 | businesses in this state. |
| 115 | 3. Submit an application to the office on forms prescribed |
| 116 | by the office. The application must include the loan |
| 117 | administrator's business plan for its proposed lending |
| 118 | activities under the pilot program, including, but not limited |
| 119 | to, a description of its outreach efforts, underwriting, credit |
| 120 | policies and procedures, credit decision processes, monitoring |
| 121 | policies and procedures, and collection practices; the |
| 122 | membership of its board of directors; and samples of its |
| 123 | currently used loan documentation. The application must also |
| 124 | include a detailed description and supporting documentation of |
| 125 | the nature of the loan administrator's partnerships with local |
| 126 | or regional economic and business development organizations. |
| 127 | (b) The office, upon selecting a loan administrator, shall |
| 128 | enter into a grant agreement with the administrator to issue the |
| 129 | available loans to eligible applicants. The grant agreement must |
| 130 | specify the aggregate amount of the loans authorized for award |
| 131 | by the loan administrator. The term of the grant agreement must |
| 132 | be at least 4 years, except that the office may terminate the |
| 133 | agreement earlier if the loan administrator fails to meet |
| 134 | minimum performance standards set by the office. The grant |
| 135 | agreement may be amended by mutual consent of both parties. |
| 136 | (c) The office shall disburse from the Economic |
| 137 | Development Trust Fund to the loan administrator the |
| 138 | appropriations provided for the pilot program. Disbursements to |
| 139 | the loan administrator must not exceed the aggregate amount of |
| 140 | the loans authorized in the grant agreement. The office may not |
| 141 | disburse more than 50 percent of the aggregate amount of the |
| 142 | loans authorized in the grant agreement until the office |
| 143 | verifies the borrowers' use of the loan proceeds and the loan |
| 144 | administrator's successful credit decisionmaking policies. |
| 145 | (d) A loan administrator is entitled to receive a loan |
| 146 | origination fee, payable at closing, of 1 percent of each loan |
| 147 | issued by the loan administrator and a servicing fee of 0.625 |
| 148 | percent per annum of the loan's outstanding principal balance, |
| 149 | payable monthly. The loan administrator shall collect the |
| 150 | servicing fee from the payments made by the borrower, first |
| 151 | charging the fee against interest payments and then charging the |
| 152 | remainder of the fee against repayments of principal. |
| 153 | (e) A loan administrator, after collecting the servicing |
| 154 | fee in accordance with paragraph (d), shall remit the borrower's |
| 155 | collected interest, principal payments, and charges for late |
| 156 | payments to the office on a quarterly basis. If the borrower |
| 157 | defaults on the loan, the loan administrator shall initiate |
| 158 | collection efforts to seek repayment of the loan. The loan |
| 159 | administrator, upon collecting payments for a defaulted loan, |
| 160 | shall remit the payments to the office but, to the extent |
| 161 | authorized in the grant agreement, may deduct the costs of the |
| 162 | administrator's collection efforts. The office shall deposit all |
| 163 | funds received under this paragraph in the General Revenue Fund. |
| 164 | (f) A loan administrator shall submit quarterly reports to |
| 165 | the office that include the information required in the grant |
| 166 | agreement. A quarterly report must include, at a minimum, the |
| 167 | number of full-time equivalent jobs created as a result of the |
| 168 | loans, the amount of wages paid to employees in the newly |
| 169 | created jobs, and the locations and types of economic activity |
| 170 | undertaken by the borrowers. |
| 171 | (6) The office shall adopt rules under ss. 120.536(1) and |
| 172 | 120.54 to administer this section. To the extent necessary to |
| 173 | expedite implementation of the pilot program, the office may |
| 174 | adopt initial emergency rules for the pilot program in |
| 175 | accordance with s. 120.54(4). |
| 176 | (7) On June 30 and December 31 of each year, beginning in |
| 177 | 2009, the office shall submit a report to the Governor, the |
| 178 | President of the Senate, and the Speaker of the House of |
| 179 | Representatives that describes in detail the use of the loan |
| 180 | funds. The report must include, at a minimum, the number of |
| 181 | businesses receiving loans, the number of full-time equivalent |
| 182 | jobs created as a result of the loans, the amount of wages paid |
| 183 | to employees in the newly created jobs, the locations and types |
| 184 | of economic activity undertaken by the borrowers, the amounts of |
| 185 | loan repayments made to date, and the default rate of borrowers. |
| 186 | (8) Unexpended balances of appropriations provided for the |
| 187 | pilot program shall not revert to the fund from which the |
| 188 | appropriation was made at the end of a fiscal year but shall be |
| 189 | retained in the Economic Development Trust Fund and be carried |
| 190 | forward for expenditure for the pilot program during the |
| 191 | following fiscal year. A loan administrator may not issue a new |
| 192 | loan or enter into a loan agreement after June 30, 2011. |
| 193 | Balances of appropriations provided for the pilot program that |
| 194 | remain unexpended as of July 1, 2011, shall revert to the |
| 195 | General Revenue Fund. |
| 196 | (9) This section is repealed July 1, 2019, unless reviewed |
| 197 | and reenacted by the Legislature before that date. |
| 198 | Section 2. Section 288.1082, Florida Statutes, is created |
| 199 | to read: |
| 200 | 288.1082 Economic Gardening Technical Assistance Pilot |
| 201 | Program.-- |
| 202 | (1) There is created within the Office of Tourism, Trade, |
| 203 | and Economic Development the Economic Gardening Technical |
| 204 | Assistance Pilot Program. The purpose of the pilot program is to |
| 205 | stimulate investment in Florida's economy by providing technical |
| 206 | assistance for expanding businesses in the state. As used in |
| 207 | this section, the term "office" means the Office of Tourism, |
| 208 | Trade, and Economic Development. |
| 209 | (2) The office shall contract with one or more entities to |
| 210 | administer the pilot program under this section. The office |
| 211 | shall award each contract in accordance with the competitive |
| 212 | bidding requirements in s. 287.057 to an entity that |
| 213 | demonstrates it has the ability to implement the pilot program |
| 214 | on a statewide basis, has an outreach plan, and has the ability |
| 215 | to provide counseling services, access to technology and |
| 216 | information, marketing services and advice, business management |
| 217 | support, and other similar services. |
| 218 | (3) A contracted entity administering the pilot program |
| 219 | shall provide technical assistance for eligible businesses that |
| 220 | includes, but is not limited to, the following: |
| 221 | (a) Access to free or affordable information services and |
| 222 | consulting services, including information on markets, |
| 223 | customers, and competitors, such as business databases, |
| 224 | geographic information systems, and search engine marketing. |
| 225 | (b) Information on how to obtain infrastructure, including |
| 226 | basic physical infrastructure; quality-of-life infrastructure, |
| 227 | such as parks and open spaces; and intellectual infrastructure |
| 228 | that provides educational opportunities to help a business |
| 229 | maintain its competitiveness. |
| 230 | (c) Business connections, including interaction and |
| 231 | exchange among business owners and resource providers, such as |
| 232 | trade associations, think tanks, academic institutions, business |
| 233 | roundtables, peer-to-peer learning sessions, and mentoring |
| 234 | programs. |
| 235 | (4)(a) To be eligible for assistance under the pilot |
| 236 | program, a business must be a for-profit, privately held, |
| 237 | investment-grade business that employs at least 10 persons but |
| 238 | not more than 99 persons, has maintained its principal place of |
| 239 | business in the state for at least the previous 2 years, |
| 240 | generates at least $1 million but not more than $50 million in |
| 241 | annual revenue, qualifies for the tax refund program for |
| 242 | qualified target industry businesses under s. 288.106, and, |
| 243 | during the previous 2-year period, has increased its number of |
| 244 | full-time equivalent employees in this state by at least 10 |
| 245 | percent. |
| 246 | (b) A contracted entity administering the pilot program, |
| 247 | in selecting the eligible businesses to receive assistance, |
| 248 | shall choose businesses in more than one industry cluster that |
| 249 | are geographically distributed throughout the state or choose |
| 250 | businesses in partnership with other businesses that are |
| 251 | geographically distributed throughout the state. |
| 252 | (5)(a) A business receiving assistance under the pilot |
| 253 | program must enter into an agreement with the contracted entity |
| 254 | administering the program to establish the business' commitment |
| 255 | to participation in the pilot program. The agreement must |
| 256 | require, at a minimum, that the business: |
| 257 | 1. Attend a minimum number of meetings between the |
| 258 | business and the contracted entity administering the pilot |
| 259 | program. |
| 260 | 2. Report job creation data in the manner prescribed by |
| 261 | the contracted entity administering the pilot program. |
| 262 | 3. Provide financial data in the manner prescribed by the |
| 263 | contracted entity administering the program. |
| 264 | (b) The office or the contracted entity administering the |
| 265 | pilot program may prescribe additional reporting requirements in |
| 266 | the agreement that are necessary to track the progress of the |
| 267 | business and monitor the business' implementation of the |
| 268 | assistance. The contracted entity shall report the information |
| 269 | to the office on a quarterly basis. |
| 270 | (6) A contracted entity administering the pilot program is |
| 271 | an economic development agency as defined in s. 288.075 that is |
| 272 | authorized to promote the general business interests or |
| 273 | industrial interests of the state. |
| 274 | (7) The office shall review the progress of a contracted |
| 275 | entity administering the pilot program at least once each 6 |
| 276 | months and shall determine whether the contracted entity is |
| 277 | meeting its contractual obligations for administration of the |
| 278 | pilot program. The office may terminate and rebid a contract if |
| 279 | the contracted entity does not meet its contractual obligations. |
| 280 | (8) On December 31 of each year, beginning in 2009, the |
| 281 | office shall submit a report to the Governor, the President of |
| 282 | the Senate, and the Speaker of the House of Representatives that |
| 283 | describes in detail the progress of the pilot program. The |
| 284 | report must include, at a minimum, the number of businesses |
| 285 | receiving assistance, the number of full-time equivalent jobs |
| 286 | created as a result of the assistance, if any, the amount of |
| 287 | wages paid to employees in the newly created jobs, and the |
| 288 | locations and types of economic activity undertaken by the |
| 289 | businesses. |
| 290 | (9) The office may adopt rules under ss. 120.536(1) and |
| 291 | 120.54 to administer this section. |
| 292 | Section 3. By December 31, 2012, the Office of Program |
| 293 | Policy Analysis and Government Accountability shall submit a |
| 294 | report to the Governor, the President of the Senate, and the |
| 295 | Speaker of the House of Representatives that evaluates the |
| 296 | Economic Gardening Technical Assistance Pilot Program in s. |
| 297 | 288.1082, Florida Statutes, and the pilot program's |
| 298 | effectiveness in expanding the targeted businesses. |
| 299 | Section 4. From the funds provided in a special |
| 300 | appropriations act for the 2008-2009 fiscal year to the Office |
| 301 | of Tourism, Trade, and Economic Development for implementation |
| 302 | of this act, the office may expend up to $1.5 million for |
| 303 | implementation of the Economic Gardening Technical Assistance |
| 304 | Pilot Program created in s. 288.1082, Florida Statutes. |
| 305 | Section 5. This act shall take effect upon becoming a law. |
| 306 |
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| 307 |
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| 308 | ----------------------------------------------------- |
| 309 | T I T L E A M E N D M E N T |
| 310 | Remove the entire title and insert: |
| 311 | A bill to be entitled |
| 312 | An act relating to economic development; creating s. |
| 313 | 288.1081, F.S.; creating the Economic Gardening Business |
| 314 | Loan Pilot Program within the Office of Tourism, Trade, |
| 315 | and Economic Development; providing legislative findings |
| 316 | and intent; providing a finding of paramount public |
| 317 | purpose; providing eligibility criteria for the award of |
| 318 | loans to certain businesses; providing application |
| 319 | procedures; requiring loan agreements; providing terms of |
| 320 | loans; providing for use of loan proceeds; requiring |
| 321 | charges for late payments; providing criteria and |
| 322 | application procedures for selection of loan |
| 323 | administrators; requiring a loan administrator to enter |
| 324 | into a grant agreement; providing for the disbursement of |
| 325 | certain funds from the Economic Development Trust Fund; |
| 326 | requiring fees for the loan administrator; providing for |
| 327 | the collection and deposit of loan payments; requiring the |
| 328 | loan administrator to submit a report to the office; |
| 329 | requiring the office to adopt rules; authorizing the use |
| 330 | of emergency rulemaking procedures; requiring the office |
| 331 | to submit a report to the Governor and Legislature; |
| 332 | providing for reversion and carryforward of certain |
| 333 | unexpended appropriations; prohibiting new loans after a |
| 334 | specified date; providing for future repeal; creating s. |
| 335 | 288.1082, F.S.; creating the Economic Gardening Technical |
| 336 | Assistance Pilot Program within the office; requiring the |
| 337 | office to contract for administration of the pilot |
| 338 | program; requiring competitive procurement; requiring the |
| 339 | provision of technical assistance to certain businesses; |
| 340 | providing eligibility criteria for businesses to receive |
| 341 | technical assistance; requiring the businesses to enter |
| 342 | into agreements with the contracted entity administering |
| 343 | the pilot program; requiring the businesses to report |
| 344 | certain data; providing that a contracted entity is an |
| 345 | economic development agency under certain provisions |
| 346 | relating to confidentiality of records; providing for |
| 347 | review of contracts; requiring the office to submit a |
| 348 | report to the Governor and Legislature; authorizing the |
| 349 | office to adopt rules; directing the Office of Program |
| 350 | Policy Analysis and Government Accountability to submit a |
| 351 | report to the Governor and Legislature; authorizing the |
| 352 | expenditure of certain funds appropriated for the pilot |
| 353 | program; providing an effective date. |