HB 4103

1	A bill to be entitled
2	An act relating to the certification of minority
3	business enterprises; amending s. 287.0943, F.S.;
4	deleting provisions establishing the Minority Business
5	Certification Task Force, requiring that criteria for
6	the certification of minority business enterprises be
7	approved by the task force, and authorizing the task
8	force to amend the statewide and interlocal agreement
9	for the certification of minority business
10	enterprises; conforming provisions; providing an
11	effective date.
12
13	Be It Enacted by the Legislature of the State of Florida:
14
15	Section 1.  Subsection (2) and paragraph (e) of subsection
16	(3) of section 287.0943, Florida Statutes, are amended to read:
17	287.0943  Certification of minority business enterprises.-
18	(2)(a)  The office is hereby directed to convene a
19	"Minority Business Certification Task Force." The task force
20	shall meet as often as necessary, but no less frequently than
21	annually.
22	(b)  The task force shall be regionally balanced and
23	comprised of officials representing the department, counties,
24	municipalities, school boards, special districts, and other
25	political subdivisions of the state who administer programs to
26	assist minority businesses in procurement or development in
27	government-sponsored programs. The following organizations may
28	appoint two members each of the task force who fit the
29	description above:
30	1.  The Florida League of Cities, Inc.
31	2.  The Florida Association of Counties.
32	3.  The Florida School Boards Association, Inc.
33	4.  The Association of Special Districts.
34	5.  The Florida Association of Minority Business Enterprise
35	Officials.
36	6.  The Florida Association of Government Purchasing
37	Officials.
38
39	In addition, the Office of Supplier Diversity shall appoint
40	seven members consisting of three representatives of minority
41	business enterprises, one of whom should be a woman business
42	owner, two officials of the office, and two at-large members to
43	ensure balance. A quorum shall consist of one-third of the
44	current members, and the task force may take action by majority
45	vote. Any vacancy may only be filled by the organization or
46	agency originally authorized to appoint the position.
47	(c)  The purpose of the task force will be to propose
48	uniform criteria and procedures by which participating entities
49	and organizations can qualify businesses to participate in
50	procurement or contracting programs as certified minority
51	business enterprises in accordance with the certification
52	criteria established by law.
53	(d)  A final list of the criteria and procedures proposed
54	by the task force shall be considered by the secretary. The task
55	force may seek technical assistance from qualified providers of
56	technical, business, and managerial expertise to ensure the
57	reliability of the certification criteria developed.
58	(a)(e)  In assessing the status of ownership and control,
59	certification criteria shall, at a minimum:
60	1.  Link ownership by a minority person as defined in s.
61	288.703, or as dictated by the legal obligations of a certifying
62	organization, to day-to-day control and financial risk by the
63	qualifying minority owner, and to demonstrated expertise or
64	licensure of a minority owner in any trade or profession that
65	the minority business enterprise will offer to the state when
66	certified. Businesses must comply with all state licensing
67	requirements before becoming certified as a minority business
68	enterprise.
69	2.  If present ownership was obtained by transfer, require
70	the minority person on whom eligibility is based to have owned
71	at least 51 percent of the applicant firm for a minimum of 2
72	years, when any previous majority ownership interest in the firm
73	was by a nonminority who is or was a relative, former employer,
74	or current employer of the minority person on whom eligibility
75	is based. This requirement does not apply to minority persons
76	who are otherwise eligible who take a 51-percent-or-greater
77	interest in a firm that requires professional licensure to
78	operate and who will be the qualifying licenseholder for the
79	firm when certified. A transfer made within a related immediate
80	family group from a nonminority person to a minority person in
81	order to establish ownership by a minority person is shall be
82	deemed to be have been made solely for purposes of satisfying
83	certification criteria and renders shall render such ownership
84	invalid for purposes of qualifying for such certification if the
85	combined total net asset value of all members of such family
86	group exceeds $1 million. For purposes of this subparagraph, the
87	term "related immediate family group" means one or more children
88	under 16 years of age and a parent of such children or the
89	spouse of such parent residing in the same house or living unit.
90	3.  Require that prospective certified minority business
91	enterprises be currently performing or seeking to perform a
92	useful business function. For purposes of this subparagraph, the
93	term A "useful business function" means is defined as a business
94	function that which results in the provision of materials,
95	supplies, equipment, or services to customers. Acting as a
96	conduit to transfer funds to a nonminority business does not
97	constitute a useful business function unless it is done so in a
98	normal industry practice. As used in this section, the term
99	"acting as a conduit" means, in part, not acting as a regular
100	dealer by making sales of material, goods, or supplies from
101	items bought, kept in stock, and regularly sold to the public in
102	the usual course of business. Brokers, manufacturer's
103	representatives, sales representatives, and nonstocking
104	distributors are considered as conduits that do not perform a
105	useful business function, unless normal industry practice
106	dictates.
107	(b)(f)  When a business receives payments or awards
108	exceeding $100,000 in any one fiscal year, a review of its
109	certification status or an audit must will be conducted within 2
110	years. In addition, the Office of Supplier Diversity may, as it
111	deems appropriate, require that random reviews or audits will be
112	conducted as deemed appropriate by the Office of Supplier
113	Diversity.
114	(c)(g)  The certification criteria approved by the task
115	force and adopted by the Department of Management Services shall
116	be included in a statewide and interlocal agreement as defined
117	in s. 287.09431 and, in accordance with s. 163.01, shall be
118	executed according to the terms included therein.
119	(d)(h)  The certification procedures should allow an
120	applicant seeking certification to designate on the application
121	form the information the applicant considers to be proprietary,
122	confidential business information. As used in this paragraph,
123	"proprietary, confidential business information" includes, but
124	is not limited to, any information that would be exempt from
125	public inspection pursuant to the provisions of chapter 119;
126	trade secrets; internal auditing controls and reports; contract
127	costs; or other information the disclosure of which would injure
128	the affected party in the marketplace or otherwise violate s.
129	286.041. The executor in receipt of the application shall issue
130	written and final notice of any information for which
131	noninspection is requested but not provided for by law.
132	(e)(i)  A business that is certified under the provisions
133	of the statewide and interlocal agreement is shall be deemed a
134	certified minority enterprise in all jurisdictions or
135	organizations where the agreement is in effect, and that
136	business is deemed available to do business as such within any
137	such jurisdiction or with any such organization statewide. All
138	state agencies must accept minority business enterprises
139	certified in accordance with the statewide and interlocal
140	agreement of s. 287.09431, and that business is shall also be
141	deemed a "certified minority business enterprise" as defined in
142	s. 288.703. However, any governmental jurisdiction or
143	organization that administers a minority business purchasing
144	program may reserve the right to establish further certification
145	procedures necessary to comply with federal law.
146	(j)  The statewide and interlocal agreement shall be guided
147	by the terms and conditions found therein and may be amended at
148	any meeting of the task force and subsequently adopted by the
149	secretary of the Department of Management Services. The amended
150	agreement must be enacted, initialed, and legally executed by at
151	least two-thirds of the certifying entities party to the
152	existing agreement and adopted by the state as originally
153	executed in order to bind the certifying entity.
154	(k)  The task force shall meet for the first time no later
155	than 45 days after the effective date of this act.
156	(3)
157	(e)  Any participating program receiving three or more
158	challenges to its certification decisions pursuant to subsection
159	(4) from other organizations that are executors to the statewide
160	and interlocal agreement, is shall be subject to a review by the
161	office, as provided in paragraphs (a) and (b), of the
162	organization's capacity to perform under such agreement and in
163	accordance with the certification core criteria established by
164	the task force. The office shall submit a report to the
165	secretary of the Department of Management Services regarding the
166	results of the review.
167	Section 2.  This act shall take effect July 1, 2012.

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