Bill Text: FL S1442 | 2012 | Regular Session | Introduced
Bill Title: Black Business Loan Program
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2012-03-09 - Died in Commerce and Tourism [S1442 Detail]
Download: Florida-2012-S1442-Introduced.html
Florida Senate - 2012 SB 1442
By Senator Braynon
33-01264-12 20121442__
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 existing recipients to submit certain
7 information to the Department of Economic Opportunity
8 instead of financial audits under certain
9 circumstances; authorizing recipients to redress audit
10 findings within a specified period; providing term of
11 and revising requirements for funding agreements
12 between recipients and the department; revising the
13 entities with whom the department must consult before
14 adopting rules; revising limits on the use of funds
15 for technical support to black business enterprises
16 and direct administrative costs; conforming
17 provisions; reenacting s. 288.7094(2), F.S., relating
18 to black business investment corporations, to
19 incorporate changes made by the act in a reference
20 thereto; providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Section 288.7102, Florida Statutes, is amended
25 to read:
26 288.7102 Black Business Loan Program.—
27 (1) The Black Business Loan Program is established in the
28 department, which shall annually certify eligible recipients for
29 a period of 5 years, recertify existing eligible recipients once
30 every 5 years, and subsequently disburse funds annually or as
31 appropriated by the Legislature, through such eligible
32 recipients, to black business enterprises that cannot obtain
33 capital through conventional lending institutions but that could
34 otherwise compete successfully in the private sector.
35 (2) The department shall establish an application and
36 annual certification process for entities seeking funds to
37 participate in providing loans, loan guarantees, or investments
38 in black business enterprises pursuant to the Florida Black
39 Business Investment Act. The department shall process all
40 applications and recertifications submitted by June 1 on or
41 before July 31 of the same calendar year.
42 (3) If the Black Business Loan Program is appropriated any
43 funding in a fiscal year, the department shall distribute an
44 equal amount of the appropriation, calculated as the total
45 annual appropriation divided by the total number of program
46 recipients certified on or before July 31 of that fiscal year.
47 (4) To be eligible to receive funds and provide loans, loan
48 guarantees, or investments under this section, a recipient must:
49 (a) Be a corporation registered in the state.
50 (b) For an existing recipient during the 1st through 4th
51 years of the recipient’s recertification period, annually submit
52 to the department a financial audit or compilation of the
53 recipient’s financial statement information for the most
54 recently completed fiscal year and a copy of the department’s
55 most recent letter certifying the recipient as qualified for the
56 award of funds.
57 (c) For an existing recipient during the 5th year of the
58 recipient’s recertification period, submit to the department a
59 recertification application and a financial audit performed by
60 an independent certified public accountant for the most recently
61 completed fiscal year, which audit does not reveal any material
62 weaknesses or instances of material noncompliance that the
63 recipient does not substantially redress within 60 days after
64 receipt of the audit report.
65 (d)(c) For a new recipient:
66 1. Demonstrate that its board of directors includes
67 citizens of the state experienced in the development of black
68 business enterprises.
69 2. Demonstrate that the recipient has a business plan that
70 allows the recipient to operate in a manner consistent with this
71 section and the rules of the department.
72 3. Demonstrate that the recipient has the technical skills
73 to analyze and evaluate applications by black business
74 enterprises for loans, loan guarantees, or investments.
75 4. Demonstrate that the recipient has established viable
76 partnerships with public and private funding sources, economic
77 development agencies, and workforce development and job referral
78 networks.
79 5. Demonstrate that the recipient can provide a private
80 match equal to 20 percent of the amount of funds provided by the
81 department.
82 (e)(d) For an existing or new recipient, agree to maintain
83 the recipient’s books and records relating to funds received by
84 the department according to generally accepted accounting
85 principles and in accordance with the requirements of s.
86 215.97(7) and to make those books and records available to the
87 department for inspection upon reasonable notice.
88 (5) Each eligible recipient must meet the requirements of
89 this section, the terms of the agreement contract between the
90 recipient and the department, and any other applicable state or
91 federal laws. An entity may not receive funds unless the entity
92 meets annual certification requirements.
93 (6) Upon approval by the department and Before release of
94 the funds as provided in this section, the department shall
95 issue a letter certifying the eligible recipient applicant as
96 qualified for an award. The department and the eligible
97 recipient applicant shall enter into an annual agreement that
98 sets forth the conditions for award of the funds. The term of
99 any agreement between the department and an eligible recipient
100 may not exceed 1 year. The agreement must include the total
101 amount of funds awarded; the performance conditions that must be
102 met once the funding is has been awarded, including, but not
103 limited to, compliance with all of the requirements of this
104 section for eligible recipients of funds under this section; and
105 sanctions for failure to meet performance conditions, including
106 any provisions to recover awards. The agreement may not require
107 any reporting of or obligation for appropriated funds beyond the
108 1-year term of the agreement, except that appropriated funds
109 remaining unexpended at the end of the 1-year agreement must be
110 reported until the funds are expended.
111 (7) The department, in consultation with the presidents of
112 the black business investment corporations board, shall adopt
113 rules pursuant to ss. 120.536(1) and 120.54 to implement this
114 section.
115 (8) A black business investment corporation certified by
116 the department as an eligible recipient under this section is
117 authorized to use funds appropriated for the Black Business Loan
118 Program in any of the following forms:
119 (a) Purchases of stock, preferred or common, voting or
120 nonvoting; however, no more than 40 percent of the funds may be
121 used for direct investments in black business enterprises;
122 (b) Loans or loan guarantees, with or without recourse, in
123 either a subordinated or priority position; or
124 (c) Administrative costs and technical support to black
125 business enterprises, which combined may not to exceed 27 9
126 percent of the funds received, and direct administrative costs,
127 not to exceed 12 percent of the funds received.
128 (9) It is the intent of the Legislature that if any one
129 type of investment mechanism authorized in subsection (8) is
130 held to be invalid, all other valid mechanisms remain available.
131 (10) All loans, loan guarantees, and investments, and any
132 income related thereto, shall be used to carry out the public
133 purpose to develop black business enterprises. This subsection
134 does not preclude a reasonable profit for the participating
135 black business investment corporation or for return of equity
136 developed to the state and participating financial institutions
137 upon any distribution of the assets or excess income of the
138 investment corporation.
139 Section 2. For the purpose of incorporating the amendment
140 made by this act to section 288.7102, Florida Statutes, in a
141 reference thereto, subsection (2) of section 288.7094, Florida
142 Statutes, is reenacted to read:
143 288.7094 Black business investment corporations.—
144 (2) A black business investment corporation that meets the
145 requirements of s. 288.7102(4) is eligible to participate in the
146 Black Business Loan Program and shall receive priority
147 consideration by the department for participation in the
148 program.
149 Section 3. This act shall take effect July 1, 2012.
