CS/HB 1551

1
A bill to be entitled
2An act relating to the Black Business Investment Board,
3Inc.; amending s. 288.707, F.S.; deleting a description of
4the board as a public-private entity; requiring the board
5to assist the Office of Tourism, Trade, and Economic
6Development in creating a long-range strategic policy for
7the Black Business Loan Program; revising the entities
8with whom the board may create partnerships for the
9development and expansion of black business enterprises;
10revising the membership of the board of directors;
11providing for certain members to be ex officio, nonvoting
12members; revising requirements for the selection, removal,
13and terms of the chair and vice chair; amending s.
14288.709, F.S.; requiring that upon dissolution of the
15board, an asset that was not acquired through the use of
16state funds be returned to the donor who provided the
17asset or the funding or resources to acquire the asset;
18amending s. 288.7091, F.S.; requiring the board to aid the
19development and expansion of black business enterprises by
20leveraging federal, state, local, and private funds;
21requiring the board to collaborate with agencies of the
22federal, state, and local governments, private entities,
23nonprofit organizations, and national organizations;
24amending s. 288.7102, F.S.; revising the dates by which
25applications for loans from the Black Business Loan
26Program must be received and processed by the Office of
27Tourism, Trade, and Economic Development; revising
28eligibility requirements for new and existing program
29recipients; revising the date by which the Office of
30Tourism, Trade, and Economic Development must distribute
31appropriations to program recipients; deleting provisions
32providing for the board to recommend the certification of
33eligible recipients for loans; revising the percentages of
34program funds that a program recipient may use for
35technical support for black business enterprises or direct
36administrative costs; amending s. 288.71025, F.S.;
37authorizing the Office of Tourism, Trade, and Economic
38Development to bring a civil action against an entity that
39unlawfully holds itself out as a black business investment
40corporation; amending s. 288.712, F.S.; deleting a
41provision relating to the black contractors bonding
42program, which requires the board to provide assistance to
43the Office of Supplier Diversity within the Department of
44Management Services; amending s. 288.714, F.S.; requiring
45that recipients of loans from the Black Business Loan
46Program provide quarterly reports to the Office of
47Tourism, Trade, and Economic Development; requiring that
48the Office of Tourism, Trade, and Economic Development
49compile a summary of quarterly reports from loan
50recipients and provide a copy of the summary to the board;
51requiring that the Office of Tourism, Trade, and Economic
52Development and the board provide annual reports to the
53Governor and Legislature by a certain date; providing an
54effective date.
55
56Be It Enacted by the Legislature of the State of Florida:
57
58     Section 1.  Subsections (1), (2), (3), and (6) of section
59288.707, Florida Statutes, are amended to read:
60     288.707  Florida Black Business Investment Board, Inc.;
61findings; creation; membership; organization; meetings;
62disclosure.-
63     (1)  The Legislature finds that the public interest of the
64state will be served by the creation of a not-for-profit
65corporation, public-private entity the primary mission of which
66is shall be to assist in the development and expansion of black
67business enterprises by:
68     (a)  Advising the Office of Tourism, Trade, and Economic
69Development in its oversight of the Black Business Loan Program
70and assisting in the creation of a creating long-range strategic
71policy for the program.
72     (b)  Evaluating the unmet need for capital by black
73business enterprises in the state.
74     (c)  Creating partnerships between federal, state, and
75local governments, and private enterprises, and national
76organizations to aid in the development and expansion of black
77business enterprises.
78     (d)  Providing a network of information resources for black
79business enterprises and providing technical assistance through
80this network.
81     (2)(a)  There is created a not-for-profit corporation to be
82known as the "Florida Black Business Investment Board, Inc.,"
83referred to in ss. 288.707-288.714 as the board, which shall be
84registered, incorporated, organized, and operated in compliance
85with chapter 617 and which must shall not be a unit or entity of
86state government. The Legislature determines, however, that
87public policy dictates that the board operate in the most open
88and accessible manner consistent with its public purpose.
89Therefore, the Legislature specifically declares that the board
90and its advisory committees or similar groups created by the
91board, including any subsidiaries, are subject to the provisions
92of chapter 119, relating to public records, and the provisions
93of chapter 286, relating to public meetings and records.
94     (b)  The board shall contract with the Office of Tourism,
95Trade, and Economic Development to implement the provisions of
96ss. 288.707-288.714.
97     (3)  The board shall be governed by a board of directors
98chosen as follows:
99     (a)  Four Five members appointed by the Governor who shall
100serve terms of 4 years each, except that in making initial
101appointments, the Governor shall appoint three members to serve
102for terms of 2 years each and two members to serve for terms of
1033 years each.
104     (b)  One member appointed by the President of the Senate
105who shall serve a term of 2 years.
106     (c)  One member appointed by the Speaker of the House of
107Representatives who shall serve a term of 2 years.
108     (d)  The vice chair of Enterprise Florida, Inc., or his or
109her designee, who shall be an ex officio, nonvoting member.
110     (e)  Two at-large members selected by the board of
111directors who are nationally known for their achievements in
112finance, small business development, or economic development.
113     (e)  The chair of the Florida Development Finance
114Corporation created pursuant to s. 288.9604.
115     (f)  Four presidents of participating black business
116investment corporations who shall be appointed by the Executive
117Director of the Office of Tourism, Trade, and Economic
118Development upon the recommendation of the Florida Consortium of
119Black Business Investment Corporations, Inc., to serve for terms
120of 3 years each. Each shall be eligible for reappointment to one
121additional term of 3 years.
122     (6)  The board shall elect a chair and vice chair from
123among its members for a term of 2 years. The chair may be
124removed by a two-thirds vote of the membership of the board. The
125Governor shall appoint the chair, who shall be a member of the
126board and shall serve at the pleasure of the Governor. The board
127shall annually elect one of its members as vice chair.
128     Section 2.  Subsection (9) of section 288.709, Florida
129Statutes, is amended to read:
130     288.709  Powers of the Florida Black Business Investment
131Board, Inc.-The board shall have all the powers granted under
132chapter 617 and any powers necessary or convenient to carry out
133and effectuate the purposes and provisions of ss. 288.707-
134288.714, including, but not limited to, the power to:
135     (9)  Provide in its bylaws that, upon the dissolution of
136the board, all of its assets acquired through the use of state
137funds, after payment of all legal debts and liabilities, revert
138to the state. However, an asset that is not acquired through the
139use of state funds, or the funding or resources necessary to
140acquire the asset, shall be returned to the donor who provided
141the asset.
142     Section 3.  Subsections (2) and (6) of section 288.7091,
143Florida Statutes, are amended to read:
144     288.7091  Duties of the Florida Black Business Investment
145Board, Inc.-The board shall:
146     (2)  Aid the development and expansion of black business
147enterprises by leveraging federal, state, local, and private
148funds to be held by the board for use according to the
149provisions of ss. 288.707-288.714.
150     (6)  Collaborate with agencies of the federal, state, and
151local governments, private entities, nonprofit organizations,
152and national organizations the Department of Transportation, the
153Department of Management Services, including the Florida
154Minority Business Loan Mobilization Program, Workforce Florida,
155Inc., and other state agencies and partners, the State
156University System, including the Florida Agricultural and
157Mechanical University's Institute of Urban Policy and Commerce,
158school boards, and local governments to create a network of
159information and to identify available resources to enhance the
160development and expansion of black business enterprises.
161     Section 4.  Section 288.7102, Florida Statutes, is amended
162to read:
163     288.7102  Black Business Loan Program.-
164     (1)  The Black Business Loan Program is established in the
165Office of Tourism, Trade, and Economic Development. Under the
166program, the office shall annually certify eligible recipients
167and subsequently disburse funds appropriated by the Legislature,
168through such eligible recipients, to black business enterprises
169that cannot obtain capital through conventional lending
170institutions but that could otherwise compete successfully in
171the private sector.
172     (2)  The office shall establish an application and annual
173certification process for entities seeking funds to participate
174in providing loans, loan guarantees, or investments in black
175business enterprises pursuant to the Florida Black Business
176Investment Act. The board shall receive the applications and
177make recommendations for certification to the office. The office
178shall process all applications and recertifications submitted by
179June 1 July 1 on or before July 31 September 30.
180     (3)  If the Black Business Loan Program is appropriated any
181funding in a fiscal year, the office shall distribute an equal
182amount of the appropriation, calculated as the total annual
183appropriation divided by the total number of program recipients
184certified on or before July 31 September 30 of that fiscal year.
185     (4)  To be eligible to receive funds and provide loans,
186loan guarantees, or investments under this section, a recipient
187must:
188     (a)  Be a corporation registered in the state.
189     (b)  For an existing recipient, annually submit to the
190office a financial audit performed by an independent certified
191public account for the most recently completed fiscal year,
192which audit does not reveal any material weaknesses or instances
193of material noncompliance.
194     (c)  For a new recipient:
195     1.(b)  Demonstrate that its board of directors includes
196citizens of the state experienced in the development of black
197business enterprises.
198     2.(c)  Demonstrate that the recipient has a business plan
199that allows the recipient to operate in a manner consistent with
200ss. 288.707-288.714 and the rules of the office.
201     3.(d)  Demonstrate that the recipient has the technical
202skills to analyze and evaluate applications by black business
203enterprises for loans, loan guarantees, or investments.
204     4.(e)  Demonstrate that the recipient has established
205viable partnerships with public and private funding sources,
206economic development agencies, and workforce development and job
207referral networks.
208     5.(f)  Demonstrate that the recipient can provide a private
209match equal to 20 percent of the amount of funds provided by the
210office.
211     (d)(g)  For an existing or new recipient, agree to maintain
212the recipient's books and records relating to funds received by
213the office according to generally accepted accounting principles
214and in accordance with the requirements of s. 215.97(7) and to
215make those books and records available to the office for
216inspection upon reasonable notice.
217     (5)  The board shall annually recommend to the office
218certification of Each eligible recipient, who must meet the
219provisions of ss. 288.707-288.714, the terms of the contract
220between the recipient and the office, and any other applicable
221state or federal laws. An entity may not receive funds under ss.
222288.707-288.714 unless the entity meets annual certification
223requirements.
224     (6)  Upon approval by the office and before prior to
225release of the funds as provided in this section, the
226shall issue a letter certifying the applicant as
227an award. The office and the applicant shall enter
228agreement that sets forth the conditions for award of the funds.
229The agreement must include the total amount of funds awarded;
230the performance conditions that must be met once the funding has
231been awarded, including, but not limited to, compliance with all
232of the requirements of this section for eligible recipients of
233funds under this section; and sanctions for failure to meet
234performance conditions, including any provisions to recover
235awards.
236     (7)(a)  The office, in consultation with the board, shall
237adopt rules pursuant to ss. 120.536(1) and 120.54 to implement
238this section.
239     (b)  The board shall adopt policies and procedures
240necessary to implement this section.
241     (8)  A black business investment corporation certified by
242the office as an eligible recipient under this section is
243authorized to use funds appropriated for the Black Business Loan
244Program in any of the following forms:
245     (a)  Purchases of stock, preferred or common, voting or
246nonvoting; however, no more than 40 percent of the funds may be
247used for direct investments in black business enterprises;
248     (b)  Loans or loan guarantees, with or without recourse, in
249either a subordinated or priority position; or
250     (c)  Technical support to black business enterprises, not
251to exceed 9 7 percent of the funds received, and direct
252administrative costs, not to exceed 12 10 percent of the funds
253received.
254     (9)  It is the intent of the Legislature that if any one
255type of investment mechanism authorized in subsection (8) is
256held to be invalid, all other valid mechanisms remain available.
257     (10)  All loans, loan guarantees, and investments, and any
258income related thereto, shall be used to carry out the public
259purpose of ss. 288.707-288.714, which is to develop black
260business enterprises. This subsection does not preclude a
261reasonable profit for the participating black business
262investment corporation or for return of equity developed to the
263state and participating financial institutions upon any
264distribution of the assets or excess income of the investment
265corporation.
266     Section 5.  Section 288.71025, Florida Statutes, is amended
267to read:
268     288.71025  Prohibited acts; penalties.-
269     (1)  It is unlawful for any person to hold itself out as a
270black business investment corporation without being certified by
271the board as eligible to participate in the Florida Black
272Business Loan Program.
273     (2)  In addition to any other penalties or remedies
274provided under law, the office board may bring a civil action in
275any court of competent jurisdiction against any person for a
276knowing or willful violation of this section. Upon an adverse
277adjudication, the court may impose a civil penalty of up to $500
278and payment of court costs and reasonable attorney's fees
279incurred by the plaintiff.
280     Section 6.  Subsection (5) of section 288.712, Florida
281Statutes, is amended to read:
282     288.712  Guarantor funds.-
283     (5)  The board shall do all of the following to implement
284the black contractors bonding program:
285     (a)  Conduct outreach, marketing, and recruitment of black
286contractors.
287     (b)  Provide assistance to the Office of Supplier Diversity
288within the Department of Management Services, as needed, to
289certify new black business enterprises and to train appropriate
290department staff.
291     (b)(c)  Provide business development services to black
292business enterprises in the developmental and transitional
293stages of the program, including financing and bonding
294assistance and management and technical assistance.
295     (c)(d)  Develop a mentor program to bring businesses into a
296working relationship with black contractors in a way that
297commercially benefits both entities and serves the purpose of
298the program.
299     (e)  No later than December 31, 2007, prepare and submit to
300the Governor a detailed report outlining and evaluating the
301progress made in implementing the black contractors bonding
302program.
303     (d)(f)  Establish a process by which black contractors may
304apply for contract assistance, financial and bonding assistance,
305management and technical assistance, and mentoring
306opportunities.
307     Section 7.  Section 288.714, Florida Statutes, is amended
308to read:
309     288.714  Quarterly and annual reports.-
310     (1)  Each recipient of state funds under s. 288.7102 shall
311provide to the office board a quarterly report within 15 days
312after the end of each calendar quarter that includes a detailed
313summary of the recipient's performance of the duties imposed by
314s. 288.7102, including, but not limited to:
315     (a)  The dollar amount of all loans or loan guarantees made
316to black business enterprises, the percentages of the loans
317guaranteed, and the names and identification of the types of
318businesses served.
319     (b)  Loan performance information.
320     (c)  The amount and nature of all other financial
321assistance provided to black business enterprises.
322     (d)  The amount and nature of technical assistance provided
323to black business enterprises, including technical assistance
324services provided in areas in which such services are otherwise
325unavailable.
326     (e)  A balance sheet for the recipient, including an
327explanation of all investments and administrative and
328operational expenses.
329     (f)  A summary of all services provided to nonblack
330business enterprises, including the dollar value and nature of
331such services and the names and identification of the types of
332businesses served.
333     (g)  Any other information as required by policies adopted
334by the office board.
335     (2)  The office board must compile and provide to the
336office a summary of all quarterly reports and provide a copy of
337the summary to the board within 30 days after the end of each
338calendar quarter that includes a detailed summary of the
339recipient's performance of the duties imposed by s. 288.7102.
340     (3)  By August 31 May 1 of each year, the office board
341shall provide to the Governor, the President of the Senate, and
342the Speaker of the House of Representatives a detailed report of
343the performance of the Black Business Loan Program. The report
344must include, including:
345     (a)  a cumulative summary of quarterly report data required
346by subsection (1).
347     (4)  By August 31 of each year, the board shall provide to
348the Governor, the President of the Senate, and the Speaker of
349the House of Representatives a detailed report of the board's
350performance, including:
351     (a)(b)  A description of the strategies implemented by the
352board to increase private investment in black business
353enterprises.
354     (b)(c)  A summary of the board's performance of its duties
355under ss. 288.707-288.712.
356     (c)(d)  The most recent 5-year projection of the need for
357capital by black business enterprises.
358     (d)(e)  Recommendations for legislative or other changes to
359enhance the development and expansion of black business
360enterprises in the state.
361     (e)(f)  A projection of the program's activities during the
362next 12 months.
363     Section 8.  This act shall take effect upon becoming a law.


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