Florida Senate - 2018 SB 1814 By Senator Simmons 9-01517-18 20181814__ 1 A bill to be entitled 2 An act relating to safe neighborhood improvement 3 districts; creating s. 163.5161, F.S.; creating the 4 Safe Neighborhood Improvement District Revolving Loan 5 Program; providing legislative purpose; providing 6 definitions; authorizing the Department of Legal 7 Affairs to provide loans for specified projects within 8 safe neighborhood improvement districts; authorizing a 9 safe neighborhood improvement district to borrow funds 10 made available under the program and pledge revenues 11 to repay such funds; specifying the procedures by 12 which the department is to administer and manage the 13 loans; specifying the term of such loans; authorizing 14 the department to provide financial assistance to 15 small safe neighborhood improvement districts; 16 authorizing the department to adopt rules related to 17 the loan program; requiring the department to prepare 18 an annual report and submit it to specified committees 19 in the Legislature; specifying items that the safe 20 neighborhood improvement districts must submit to the 21 department before being approved for loans; requiring 22 the approval of the use of the revolving loans by the 23 registered voters of the district by referendum; 24 specifying items to be included in the referendum; 25 requiring the referendum to be by sent by mail and 26 published; specifying audit procedures once a loan 27 project is completed; authorizing the department to 28 charge reasonable service fees on loans to ensure the 29 Safe Neighborhood Improvement District Revolving Loan 30 Trust Fund will be operated in perpetuity; specifying 31 fee amounts; restricting uses of the trust fund; 32 specifying procedures if a safe neighborhood 33 improvement district defaults under the terms of its 34 loan agreement; authorizing the department to levy 35 penalties for delinquent loan payments; authorizing 36 the department to terminate or rescind a financial 37 assistance agreement under certain conditions; 38 providing an effective date. 39 40 Be It Enacted by the Legislature of the State of Florida: 41 42 Section 1. Section 163.5161, Florida Statutes, is created 43 to read: 44 163.5161 Safe Neighborhood Improvement District Revolving 45 Loan Program; use; rules.— 46 (1) The purpose of this section is to help implement the 47 legislative public policy of guiding the coordinated, balanced, 48 and harmonious development of safe neighborhood improvement 49 districts. This is accomplished by ensuring such districts have 50 adequate finances to plan and increase crime prevention through 51 environmental design, environmental security, or defensible 52 space techniques, or through community policing innovations. 53 (2) For purposes of this section, the term: 54 (a) “Bonds” means bonds, certificates, or other obligations 55 of indebtedness issued by the department under this section. 56 (b) “Neighborhood improvements” means all facilities, 57 including land, water, utilities, and roads, necessary for 58 providing critical infrastructure to implement the crime 59 prevention plans of a safe neighborhood improvement district. 60 (3) The department may provide loan guarantees, purchase 61 loan insurance, and refinance local debt through the issuance of 62 new loans for projects that are in the plans of a safe 63 neighborhood improvement district and that have been approved by 64 the department. A safe neighborhood improvement district may 65 borrow funds made available pursuant to this section and may 66 pledge any revenues or other adequate security available to the 67 district to repay any funds borrowed. 68 (a) The department shall administer loans so that 15 69 percent of the amounts credited to the Safe Neighborhood 70 Improvement District Revolving Loan Trust Fund in any fiscal 71 year is reserved for small safe neighborhood improvement 72 districts. 73 (b) If an insufficient number of the projects for which 74 funds are reserved under this subsection have been submitted to 75 the department at the time a funding priority list is adopted, 76 the reservation of these funds no longer applies. The department 77 may award the unreserved funds as otherwise provided in this 78 section. 79 (4) The term of loans made pursuant to this section may not 80 exceed the life of the project secured by the bond. The interest 81 rate on such loans may not exceed that paid on the last bonds 82 sold pursuant to s. 14, Art. VII of the State Constitution. 83 (5)(a) The department may provide financial assistance to 84 small neighborhood improvement districts, as determined by the 85 department, including providing forgiveness of the loan 86 principal. 87 (b) The department shall establish by rule the criteria for 88 determining whether a safe neighborhood improvement district 89 serves a financially disadvantaged community. Such criteria 90 shall be based on the median household income of the service 91 population or other reliably documented measures of 92 disadvantaged status. 93 (6) In order to ensure that public moneys are managed in an 94 equitable, prudent, and cost-effective manner, the total amount 95 of money loaned to any safe neighborhood improvement district 96 during a fiscal year may not exceed 25 percent of the total 97 funds available for making loans during that year. 98 (7) The department may adopt rules to: 99 (a) Establish a priority system for loans based on degree 100 of likelihood of enhancing crime prevention and affordability 101 within a safe neighborhood improvement district. 102 (b) Establish the requirements for the award and the 103 repayment of financial assistance. 104 (c) Require evidence of credit worthiness and adequate 105 security, including an identification of revenues to be pledged 106 and documentation of the sufficiency of revenues for loan 107 repayment and pledged revenue coverage, to ensure that each loan 108 recipient can meet its loan repayment requirements. 109 (d) Require each project receiving financial assistance to 110 be cost-effective, environmentally sound, implementable, and 111 self-supporting. 112 (8) The department shall prepare a report at the end of 113 each fiscal year which details the financial assistance provided 114 under this section, service fees collected, interest earned, and 115 loans outstanding. The report shall be provided to the 116 appropriations committees in the Senate and the House of 117 Representatives. 118 (9) Before being approved for a loan, the safe neighborhood 119 improvement district must, at a minimum: 120 (a) Provide a repayment schedule. 121 (b) Submit evidence that the project proposed for financial 122 assistance can be permitted or implemented. 123 (c) Submit plans and specifications, biddable contract 124 documents, or other documentation of appropriate procurement of 125 goods and services. 126 (d) Provide assurance that records will be kept using 127 generally accepted accounting principles and that the department 128 and the Auditor General will have access to all records 129 pertaining to the loan. 130 (e) Provide assurance that the goods and services funded 131 will be properly operated and maintained. 132 (10) A safe neighborhood improvement district may not 133 receive a revolving loan under this section unless the local 134 government approves a resolution that provides for a referendum, 135 and the qualified electors of the district have approved the use 136 of revolving loans by referendum. The referendum must include 137 the estimated cost of the capital projects that are anticipated 138 to be funded by the revolving loan funds and the amount of the 139 loan. 140 (a) The referendum to approve the loan funds shall be by 141 mail ballot. 142 (b) Within 45 days after the date the city or county 143 commission enacts an ordinance calling a referendum, the city 144 clerk or the supervisor of elections, as appropriate, shall 145 compile a list of the names and last known addresses of the 146 electors within the safe neighborhood improvement district from 147 the list of registered voters of the municipality or county, as 148 appropriate, as of the last day of the preceding month, which 149 shall be the registration list for the referendum. A resident of 150 the district whose name does not appear on the registration list 151 may register to vote in the referendum as otherwise provided by 152 law. 153 (c) Within 45 days after compilation of the voter 154 registration list, the city clerk or the supervisor of 155 elections, as appropriate, shall notify each qualified elector 156 of the provisions of the ordinance and the date of the upcoming 157 referendum. Notification shall be by first-class mail and a one 158 time publication in a newspaper of general circulation in the 159 municipality or county, as appropriate, in which the district is 160 located. 161 (d) The registration list must remain open for 75 days 162 after the date of the mailing of the notices to the electors as 163 provided in paragraph (c). 164 (e) Within 15 days after closing the registration list, the 165 city clerk or the supervisor of elections, as appropriate, shall 166 send a ballot to each elector at his or her last known mailing 167 address by first-class mail. The ballot must include: 168 1. A description of the capital projects to be funded by 169 the loan and the revenue sources that will be used to repay the 170 loan. 171 2. The following statement: 172 “Do you favor authorizing the .... Safe Neighborhood 173 Improvement District to use revolving loan funds in the amount 174 of $............to finance capital projects that are estimated 175 to cost $............ as provided by section 163.5161, Florida 176 Statutes? 177 178 ....Yes, I favor authorizing the use of revolving loan 179 funds for district purposes. 180 ....No, I am opposed to authorizing the use of revolving 181 loan funds for district purposes.” 182 183 (f) Ballots must be returned by mail or by personal 184 delivery. 185 (g) All ballots received within 60 days after the closing 186 of the registration list shall be tabulated by the city clerk or 187 the supervisor of elections, as appropriate, who shall certify 188 the results thereof to the city or county commission, as 189 appropriate, no later than 5 days thereafter. 190 (h) The use of revolving loan funds is deemed to have been 191 approved only upon the affirmative vote of a majority of the 192 registered voters in the district voting on the issue. 193 (11) The department may conduct an audit of the loan 194 project upon completion, or may require that a separate project 195 audit, prepared by an independent certified public accountant, 196 be submitted. 197 (12) The department may require reasonable service fees on 198 loans made to safe neighborhood improvement districts to ensure 199 that the Safe Neighborhood Improvement District Revolving Loan 200 Trust Fund will be operated in perpetuity and to implement the 201 purposes authorized under this section. Service fees may not be 202 less than 2 percent nor greater than 4 percent of the loan 203 amount exclusive of the service fee. Service fee revenues shall 204 be deposited into the department’s Grants and Donations Trust 205 Fund. The fee revenues, and interest earnings thereon, shall be 206 used exclusively to carry out the purposes of this section. 207 (13) The Safe Neighborhood Improvement District Revolving 208 Loan Trust Fund shall be used exclusively to carry out the 209 purposes of this section. Any funds that are not needed 210 immediately for financial assistance shall be invested pursuant 211 to s. 215.49. The principal and interest of all loans repaid and 212 investment earnings thereon shall be deposited into the fund. 213 (14)(a) If a safe neighborhood improvement district 214 defaults under the terms of its loan agreement, the department 215 must so certify to the Chief Financial Officer, who shall 216 forward the amount delinquent to the department from any 217 unobligated funds due to the safe neighborhood improvement 218 district under any revenue-sharing or tax-sharing fund 219 established by the state, except as otherwise provided by the 220 State Constitution. Certification of delinquency may not limit 221 the department from pursuing other remedies available for 222 default on a loan, including accelerating loan repayments, 223 eliminating all or part of the interest rate subsidy on the 224 loan, and requesting a court appoint a receiver to manage the 225 safe neighborhood improvement district. 226 (b) The department may impose a penalty for delinquent loan 227 payments in the amount of 6 percent of the amount due, in 228 addition to charging the cost to handle and process the debt. 229 Penalty interest shall accrue on any amount due and payable 230 beginning on the 30th day following the date upon which payment 231 is due. 232 (15) The department may terminate or rescind a financial 233 assistance agreement if the recipient fails to comply with the 234 terms and conditions of the agreement. 235 Section 2. This act shall take effect upon becoming a law.