Florida Senate - 2011                                     SB 598
       By Senator Siplin
       19-00906-11                                            2011598__
    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
    4         recertification and audit periods for eligible
    5         recipients of the Black Business Loan Program;
    6         authorizing recipients to redress audit findings
    7         within a specified period; providing term of funding
    8         agreements between recipients and the Office of
    9         Tourism, Trade, and Economic Development; revising
   10         limits on the use of funds for technical support to
   11         black business enterprises and direct administrative
   12         costs; providing an effective date.
   14  Be It Enacted by the Legislature of the State of Florida:
   16         Section 1. Section 288.7102, Florida Statutes, is amended
   17  to read:
   18         288.7102 Black Business Loan Program.—
   19         (1) The Black Business Loan Program is established in the
   20  Office of Tourism, Trade, and Economic Development. Under the
   21  program, the office shall annually certify eligible recipients,
   22  recertify eligible recipients once every 5 years, and
   23  subsequently disburse funds appropriated by the Legislature,
   24  through such eligible recipients, to black business enterprises
   25  that cannot obtain capital through conventional lending
   26  institutions but that could otherwise compete successfully in
   27  the private sector.
   28         (2) The office shall establish an application and annual
   29  certification process for entities seeking funds to participate
   30  in providing loans, loan guarantees, or investments in black
   31  business enterprises pursuant to the Florida Black Business
   32  Investment Act. The office shall process all applications and
   33  recertifications submitted by June 1 on or before July 31.
   34         (3) If the Black Business Loan Program is appropriated any
   35  funding in a fiscal year, the office shall distribute an equal
   36  amount of the appropriation, calculated as the total annual
   37  appropriation divided by the total number of program recipients
   38  certified on or before July 31 of that fiscal year.
   39         (4) To be eligible to receive funds and provide loans, loan
   40  guarantees, or investments under this section, a recipient 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 the
   69  recipient’s books and records relating to funds received by the
   70  office according to generally accepted accounting principles and
   71  in accordance with the requirements of s. 215.97(7) and to make
   72  those books and records available to the office for inspection
   73  upon reasonable notice.
   74         (5) Each eligible recipient must meet the provisions of ss.
   75  288.707-288.714, the terms of the agreement contract between the
   76  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 adopt
   93  rules pursuant to ss. 120.536(1) and 120.54 to implement this
   94  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 to
  105  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.