HB 317

1	A bill to be entitled
2	An act relating to the Black Business Loan Program;
3	amending s. 288.7102, F.S.; revising the recertification
4	and audit periods for eligible recipients of the Black
5	Business Loan Program; authorizing recipients to redress
6	audit findings within a specified period; providing term
7	of funding agreements between recipients and the Office of
8	Tourism, Trade, and Economic Development; revising limits
9	on the use of funds for technical support to black
10	business enterprises and direct administrative costs;
11	providing an effective date.
12
13	Be It Enacted by the Legislature of the State of Florida:
14
15	Section 1.  Section 288.7102, Florida Statutes, is amended
16	to read:
17	288.7102  Black Business Loan Program.-
18	(1)  The Black Business Loan Program is established in the
19	Office of Tourism, Trade, and Economic Development. Under the
20	program, the office shall annually certify eligible recipients,
21	recertify eligible recipients once every 5 years, and
22	subsequently disburse funds appropriated by the Legislature,
23	through such eligible recipients, to black business enterprises
24	that cannot obtain capital through conventional lending
25	institutions but that could otherwise compete successfully in
26	the private sector.
27	(2)  The office shall establish an application and annual
28	certification process for entities seeking funds to participate
29	in providing loans, loan guarantees, or investments in black
30	business enterprises pursuant to the Florida Black Business
31	Investment Act. The office shall process all applications and
32	recertifications submitted by June 1 on or before July 31.
33	(3)  If the Black Business Loan Program is appropriated any
34	funding in a fiscal year, the office shall distribute an equal
35	amount of the appropriation, calculated as the total annual
36	appropriation divided by the total number of program recipients
37	certified on or before July 31 of that fiscal year.
38	(4)  To be eligible to receive funds and provide loans,
39	loan guarantees, or investments under this section, a recipient
40	must:
41	(a)  Be a corporation registered in the state.
42	(b)  For an existing recipient, annually submit to the
43	office, together with the recipient's recertification
44	application, a financial audit performed by an independent
45	certified public account for the recipient's quinquennial
46	recertification period most recently completed fiscal year,
47	which audit does not reveal any material weaknesses or instances
48	of material noncompliance that the recipient does not
49	substantially redress within 60 days after receipt of the audit
50	report.
51	(c)  For a new recipient:
52	1.  Demonstrate that its board of directors includes
53	citizens of the state experienced in the development of black
54	business enterprises.
55	2.  Demonstrate that the recipient has a business plan that
56	allows the recipient to operate in a manner consistent with ss.
57	288.707-288.714 and the rules of the office.
58	3.  Demonstrate that the recipient has the technical skills
59	to analyze and evaluate applications by black business
60	enterprises for loans, loan guarantees, or investments.
61	4.  Demonstrate that the recipient has established viable
62	partnerships with public and private funding sources, economic
63	development agencies, and workforce development and job referral
64	networks.
65	5.  Demonstrate that the recipient can provide a private
66	match equal to 20 percent of the amount of funds provided by the
67	office.
68	(d)  For an existing or new recipient, agree to maintain
69	the recipient's books and records relating to funds received by
70	the office according to generally accepted accounting principles
71	and in accordance with the requirements of s. 215.97(7) and to
72	make those books and records available to the office for
73	inspection upon reasonable notice.
74	(5)  Each eligible recipient must meet the provisions of
75	ss. 288.707-288.714, the terms of the agreement contract between
76	the recipient and the office, and any other applicable state or
77	federal laws. An entity may not receive funds under ss. 288.707-
78	288.714 unless the entity meets annual certification
79	requirements.
80	(6)  Upon approval by the office and before release of the
81	funds as provided in this section, the office shall issue a
82	letter certifying the applicant as qualified for an award. The
83	office and the applicant shall enter into an agreement that sets
84	forth the conditions for award of the funds. The agreement must
85	include the total amount of funds awarded; the performance
86	conditions that must be met once the funding is has been
87	awarded, including, but not limited to, compliance with all of
88	the requirements of this section for eligible recipients of
89	funds under this section; and sanctions for failure to meet
90	performance conditions, including any provisions to recover
91	awards. The term of the agreement may not exceed 1 year.
92	(7)  The office, in consultation with the board, shall
93	adopt rules pursuant to ss. 120.536(1) and 120.54 to implement
94	this section.
95	(8)  A black business investment corporation certified by
96	the office as an eligible recipient under this section is
97	authorized to use funds appropriated for the Black Business Loan
98	Program in any of the following forms:
99	(a)  Purchases of stock, preferred or common, voting or
100	nonvoting; however, no more than 40 percent of the funds may be
101	used for direct investments in black business enterprises;
102	(b)  Loans or loan guarantees, with or without recourse, in
103	either a subordinated or priority position; or
104	(c)  Technical support to black business enterprises, not
105	to exceed 9 percent of the funds received, and direct
106	administrative costs, not to exceed 27 12 percent of the funds
107	received.
108	(9)  It is the intent of the Legislature that if any one
109	type of investment mechanism authorized in subsection (8) is
110	held to be invalid, all other valid mechanisms remain available.
111	(10)  All loans, loan guarantees, and investments, and any
112	income related thereto, shall be used to carry out the public
113	purpose of ss. 288.707-288.714, which is to develop black
114	business enterprises. This subsection does not preclude a
115	reasonable profit for the participating black business
116	investment corporation or for return of equity developed to the
117	state and participating financial institutions upon any
118	distribution of the assets or excess income of the investment
119	corporation.
120	Section 2.  This act shall take effect July 1, 2011.

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