The purpose of this proposed amendment is to establish in rule the most recent eligibility criteria, application submission criteria including the required use of the Division’s new on-line grants system; and criteria related to compliance with and ...  

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    DEPARTMENT OF STATE
    Division of Cultural Affairs

    RULE NO: RULE TITLE
    1T-1.001: Division of Cultural Affairs
    PURPOSE AND EFFECT: The purpose of this proposed amendment is to establish in rule the most recent eligibility criteria, application submission criteria including the required use of the Division’s new on-line grants system; and criteria related to compliance with and the recordation of restrictive covenants or surety bonds in compliance with Section 265.701(4), FS.
    SUMMARY: The proposed rule details application submission, eligibility criteria, application procedures, matching funds, evaluation criteria, reporting requirements, and grant administration.
    SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
    Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
    SPECIFIC AUTHORITY: 255.043(4), 265.284(5)(d), 265.285(1)(c), 265.286(1), (4), (6), 265.2861(2)(b), 265.2865(6), 265.605(1), 265.608(1), 265.609(1), (4), 265.701(4), 265.702(8) FS.
    LAW IMPLEMENTED: 215.97, 255.043, 265.284, 265.285, 265.286, 265.2861, 265.2865, 265.601-.603, 265.605-.607, 265.608, 265.609, 265.701, 265.702, 286.011, 286.012, 286.25 FS.
    IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
    DATE AND TIME: Monday, May 12, 2008, 10:00 a.m.
    PLACE: Division of Cultural Affairs, R. A. Gray Building, 3rd Floor, Room 307, 500 South Bronough Street, Tallahassee, Florida 32399-0250
    THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Donald R. Blancett, Division of Cultural Affairs, R. A. Gray Building, 3rd Floor, 500 South Bronough Street, Tallahassee, Florida 32399-0250

    THE FULL TEXT OF THE PROPOSED RULE IS:

    1T-1.001 Division of Cultural Affairs.

    (1) through (15) No change.

    (16) Cultural Facilities Program. The purpose of this program is to coordinate and guide the State of Florida’s support and funding for the renovation, construction, or acquisition of cultural facilities. This program is not intended to fund project planning, such as feasibility studies and architectural drawings, or operational support.

    (a) Administrative and Legal Eligibility. An eligible The applicant for a cultural facilities grant must:

    1. Be a public entity governed by either a municipality, county, or qualified corporation as defined in Section 265.701(2), F.S.

    2. Have ownership of, or have an executed lease at the time of application for the undisturbed use of the land or buildings or both associated with the land, building(s), both situated upon the property where the cultural facility for a minimum of 10 years following the recordation of the restrictive covenant or date of issue of a surety bond. is or will be located; or

    3. Have an executed lease for the undisturbed use of the land, building(s), or both upon the property where the cultural facility is or will be located. In those cases where the land, or building(s), or both, are leased by an eligible the applicant, the owner(s) must also meet the requirements of Section 265.701(2) and (4), F.S. For the purposes of this program, an eligible applicant may that leases state-owned land, or building(s), or both must not be a political subdivision of the state.

    4. Retain ownership of all improvements to the facility and property made with grant funds for at least ten years following the execution of the grant award agreement. This paragraph does not apply to applicants that lease land and/or building(s) owned by the state.

    3.5. Have satisfied the administrative requirements of previous grants received from the Division.

    (b) Ownership of Improvements. The owner of the property or building(s) or both must retain ownership of the improvements made to the property or building(s) or both for at least 10 years following the recordation of the restrictive covenant or date of issue of a surety bond.

    (c)(b) Application Requirements Program Eligibility. All eligible Aapplications shall consist of the following documents and information:

    1. Until directed to submit electronically on the Division’s website, applicants must submit in hard copy, Aa completed and signed Cultural Facilities Program Application shall be electronically submitted through the Division’s on-line application website at www.florida-arts.org Form (#CA2EO20, eff. 5/06), incorporated by reference and available from the Division, including the number of required application copies, submitted to the Division on or before the application announced postmark deadline, which will be posted on the Division’s website. The application is available through the Division’s on-line application system.

    2. A complete application shall include the following:

    a. General identification and contact information.

    b.2. A description of the Project Scope of Work, that shall includeing a project narrative, the current phases, and the prior phases of the project.

    c.3. Project Budgets, including a summary and detail, a matching funds statement, a match summary chart, and a donor profile.

    d.4. A description of the Need for the Project, including an operating forecast detail, a list of the organization staff, and a statement regarding on the fiscal stability of the organization.

    e.5. A description of the project’s impact on the city, county, or multi-county region.

    3. Application Support Materials. The following support materials are required. Directions for submission of support materials shall be available through the online application system.

    a.6. Documentation of unrestricted ownership or undisturbed use through an executed lease of the land or building(s) or both, related to the cultural facility and facility located upon the property; or

    7. An executed lease agreement between the applicant and owner(s) of the land, building(s), or both located upon the property, providing for undisturbed use for a minimum of 10 years following the recordation of the restrictive covenant or date of issue of a surety bond execution date of the grant award agreement. Leases conditioned on the applicant’s receipt of grant funds do not qualify.

    b.8. Documentation of the applicant’s Total Support and Revenue and Total Expenses. Documentation shall consist of an independent certified audit or review, or certification of the organization’s Total Support and Revenue and Total Expenses by an authorized official of the applicant. An authorized official shall be either the president of the board, board chair, or another board member authorized to enter into agreements for the organization. If the applicant is an entity of city or county government, the authorized official shall be an elected official of the city or county, or an individual designated by the official to act upon the behalf of the official. An independent certified audit or review of the applicant’s financial records according to the following provisions:

    a. Not-for-Profit, tax-exempt Florida corporations with total support and revenue in the unrestricted column of the audit of less than $500,000 must submit copies of the applicant organization's independent, certified audit or review for the last completed fiscal year. The publication date of the audit or review shall not be later than the date of the application deadline for which the audit or review is submitted.

    b. Not-for-Profit, tax-exempt Florida corporations with total support and revenue in the unrestricted column of the audit of $500,000 or more must submit copies of the applicant organization's independent, certified audit for the last completed fiscal year. The publication date of the audit shall not be later than the date of the application deadline for which the audit is submitted.

    c. Municipal or county governments shall submit either the audit for the last completed fiscal year, or an internally prepared financial statement of revenue and expenses.

    c.9. An 8 1/2" x 11" reduction of current architectural plans.

    d.10. Letters of Support: Submit letters or list of local officials lending support to this project.

    e. For municipalities and counties, a copy of the approved resolution or minutes from the commission meeting showing the dollar amount dedicated and available to the project if the grant is awarded, and the date the funds will be available.

    (d)(c) Funding Request.

    1. The applicant shall not request more than $500,000 in a single application. There is no minimum amount.

    2. An applicant from the same organization shall not submit more than one application under a single application deadline for the same facility, project, site, or phase.

    3. An organization may shall not submit a funding requests to both the Cultural Facilities Program and the Regional Cultural Facilities Program in the same fiscal year for the same project, facility, site, or phase in the same fiscal year.

    4. An entity funded by the Legislature outside of the review of the Florida Arts Council or approval by the Secretary of State shall not be eligible to receive grant support for the same renovation, acquisition, or new construction project from the Division of Cultural Affairs within the same fiscal year in which Legislative funding is appropriated.

    (e)(d) Time Limits and Funding Cap. No project shall receive more than $1.5 million during five (5) consecutive state fiscal years. “Receive” means measured from July 1 of the fiscal year in which grant funds for the Cultural Facilities Program were appropriated by the Legislature awarded.

    (f)(e) Matching Funds.

    1. For eligible organizations with total support and revenue in the unrestricted column of the audit of less than $500,000, eligible matching funds provided by the applicant organization or by a third party shall be on at least a one-to-one match of the amount requested.

    2. For eligible organizations with total support and revenue in the unrestricted column of the audit of $500,000 or more, eligible matching funds provided by the applicant organization or by a third party shall be on at least a two-to-one match of the amount requested, except for eligible Rural Economic Development Initiative (REDI) applicants. REDI qualified means those counties or communities designated pursuant to Sections 288.0656 and 288.06561, F.S.

    3. Eligible matching funds provided by eligible REDI applicants shall be at least a one-to-one match of the amount requested.

    4. At least 50% of the required match must be in cash. For the purposes of this program, cash shall include cash-on-hand, and cash expenditures made on the project within the five-year period prior to the application deadline.

    5. At least 50% of the cash match must be cash-on-hand and dedicated to the project. For the purpose of this program, cash-on-hand includes funds identified in executed award letters or contracts from third parties, provided that those funds are expressly for the project for which the grant application is submitted.

    6. No more than 50% of the match may be irrevocable pledges or in-kind contributions. Irrevocable pledges and in-kind contributions must be documented in the application. For the purpose of this program, in-kind contributions by the applicant are not eligible for match.

    7. Municipalities and counties must submit a copy of the approved resolution or minutes from the commission meeting, with the required support material original application, which includes the dollar amount dedicated and available to the project if the grant is awarded and the date the funds will be available. Resolutions that have not been approved by the application deadline cannot be used as match documentation. Local funding, as indicated by the resolution, must be made available within 90 days of state award notification.

    (g)(f) Application Review Committee.

    1. The application review committee shall review each eligible application based on the following criteria: Scope of Work (up to 15 points), Project Budget and Matching Funds (up to 25 points), Need for Program and Operating Forecast (up to 30 points), and Project Impact (up to 30 points).

    2. All applications that receive an average score of at least of 75 out of 100 possible points will be recommended for funding.

    3. The committee shall develop a priority list based on the average score for each application.

    4. The committee shall submit the priority list to the Florida Arts Council for review and recommendation.

    (h)(g) The Florida Arts Council shall review the priority list and submit the recommendations to the Secretary of State.

    (i)(h) The Secretary of State shall review the recommendations of the Council and provide the Legislature with an approved priority list with funding recommendations.

    (j)(i) Retaining Projects on the next grant cycle priority list.

    1. Projects that are approved and recommended by the Secretary but are not funded by the Legislature shall be retained on the priority list for the next grant cycle only.

    2. All applicants with projects that are retained on the priority list shall be required by the Division to submit the information in subparagraphs (c)2.a.-c.(b)1.-3. above in order to report reflect the most current status of the project.

    3. The deadline for the receipt of updated information and directions for submission shall be posted on the Division’s website the same annual deadline as for new applications.

    4. Rollover Uupdated projects on the priority list shall will not be re-scored, but will retain their original scores and recommended funding amounts, and be rather merged with the new applications for that year using the original scores and recommended funding.

    5. Projects that are rolled over to the priority list shall be ineligible for a grant if the updated information includes a change in scope, venue, or funding amount; or if all of the required update information is not provided by the deadline.  Rollover updates that are determined by the Division to be incomplete or ineligible, changed in scope or venue, or increased the funding request shall be removed from the priority list.

    (k)(j) No changes in project scope or venue will be permitted.

    (l)(k) Grant Award Agreement. The Grant Award Agreement (CA2EO38, eff. 5/086) incorporated by reference and available from the Division, is the document by which the organization enters into a contract with the State of Florida for the management of grant funds which shall include:

    1. An update of the application project narrative and budget.

    2. A completed Assurance of Compliance and Signature Authorization Form (Form CA2E059, eff. 6/00, incorporated by reference and available from the Division at www.florida-arts.org).

    3. Other provisions that shall be agreed to by both the grantee and the state.

    (m) Grant Encumbrance Period and Expenditure Date.

    1. Encumbrance Period.

    a. For the purpose of this program, the encumbrance period is the state fiscal year in which grant funds are appropriated by the Legislature.

    b. During the encumbrance period, but not later than the end date of the encumbrance period, the grantee shall execute all required contracts for all work to be accomplished with grant funds.

    c. The Division will not release more than 25% of the total grant amount until the executed contract with an architect or contractor has been submitted. The Division shall maintain the signed contract in the grant files. The contract shall reference an amount equal to or in excess of the grant amount and shall be signed and dated by the grantee and the architect or contractor. Acquisition grants that were awarded for the purchase of land on which the cultural facility will be built or for the purchase of a facility are exempt from this provision.

    d. Grant funds shall not be used for project expenditures that were incurred prior to the execution of the Grant Award Agreement.

    e. The maximum extension of the encumbrance period is 120 days.

    2. Expenditure Date.

    a. Grant funds must be expended by April 1 of the fiscal year following the fiscal year in which grant funds were appropriated by the Legislature.

    b. Grant funds shall not be used for project expenditures that were incurred later than the approved expenditure deadline.

    c. The maximum extension of the expenditure date shall be 120 days.

    3.(l) The Division may will further extend the encumbrance and expenditure deadlines by not more than an additional 120 days each, provisions in section (10) of the Agreement in the event that the grantee can clearly demonstrate extenuating circumstances. Extenuating circumstances encompass situations beyond the control of the grantee that prevent the timely completion of the project. Such circumstances include natural disaster, death or serious illness of the individual responsible for the completion of the project, litigation, or failure of the contractor or architect to provide the services for which they were hired. Extenuating circumstances do not include failure to read or understand grant administrative requirements or failure to raise sufficient matching funds.

    (n)(m) Reporting Requirements.

    1. Interim Reports shall be submitted at six-month intervals until the project is complete. For the purpose of this program, a project is considered complete when all grant and match funds have been expended. The first Interim Report is due on January 31 of the state fiscal year in which the grant was awarded.

    2. Final Report. A Final Report shall be submitted 45 days after the expenditure of grant and match completion of the project.

    3. All reports shall include the following information:

    a. A description of the work completed.

    b. A financial statement showing the expenditure of grant and match.

    c. A state grant expenditure log that includes check number, amount of check, date of check, name of payee, and a description of the expenditure.

    (o)(n) Definitions. For the purposes of this program, paragraphs (n), (o) and (p) of section (17) of this rule, a “grantee” is an applicant that has received a Cultural Facilities Program Grant Award. “Property owner” refers to the owners of land, or building(s), or both, and all improvements made with grant funds situated upon the property. Section 265.701(4), F.S., requires that the grantee and the property owner either record a restrictive covenant or purchase a surety bond to ensure that the facility is used as a cultural facility for (10) years following the recordation of the restrictive covenant or date of issue of the surety bond execution date of the grant award agreement. A “cultural facility” is “a building which shall be used primarily for the programming, production, presentation, exhibition or any combination of the above functions of any of the cultural disciplines, such as: music, dance, theatre, creative writing, literature, painting, sculpture, folks arts, photography, crafts, media arts, and historical and science museums.”

    (p)(o) Restrictive Covenant.

    1. If the grantee chooses to recordation of a restrictive covenant, is chosen by the grantee, and the property owner(s), if the land or buildings or both are leased by the grantee, shall a completed and executed and file a rRestrictive cCovenants Form must be filed with the Clerk of the Circuit Court in the county where the property is located, prior to release of the grant funds.

    2. The restrictive covenant shall include the following provisions: grantee’s legal interest in the land and/or building(s) determines which of the four restrictive covenant forms described below must be used.

    a. That the restrictive covenant shall run with title to the building(s) and the associated land and improvements made by grant funds, shall encumber them, and shall be binding upon the grantee and the owners, if different, and the successors in interest for (10) ten years from the date of the recordation of the restrictive covenant. A grantee that owns the land and the building(s) upon the property where the cultural facility is or will be located must complete Restrictive Covenant Addendum 1-A, Form CA2E108, eff. 5/06, incorporated by reference and available from the Division.

    b. The owner of the improvements made to the building(s) and associated land funded in whole or in part by grant funds shall also execute the restrictive covenant. A grantee that owns the building(s) upon the property where the cultural facility is or will be located, but leases the underlying land, must complete Restrictive Covenant Addendum 1-B, Form CA2E110, eff. 5/06, incorporated by reference and available from the Division.

    c. The grantee shall permit the Division to inspect the facility and associated land at all reasonable times to determine whether the grantee is in compliance with the grant award agreement and the restrictive covenant or surety bond. A grantee that leases the land and the building(s) upon the property where the cultural facility is or will be located must complete Restrictive Covenant Addendum 1-C, Form CA2E111, eff. 5/06, incorporated by reference and available from the Division.

    d. The grantee shall maintain the building(s) as a “cultural facility.” For the purposes of this program, a “cultural facility” is a building which shall be used primarily for the programming, production, presentation, exhibition or any combination of the foregoing for any of the following cultural disciplines: music, dance, theatre, creative writing, literature, painting, sculpture, folk arts, photography, crafts, media arts, and historical and science museums. A grantee that owns the land where the cultural facility is or will be located, but leases the building(s) upon the property where the cultural facility is or will be located must complete Restrictive Covenant Addendum 1-D, Form CA2E0112, eff 5/06, incorporated by reference and available from the Division.

    e. The restrictive covenant shall also contain an amortization and schedule of the repayment of grant funds, should the grantee or owners or their successors in interest violate the restrictive covenant.

    f. Other provisions as agreed upon by the Division and the grantee.

    3. If the restrictive covenant is violated, the grantee shall reimburse the Division pursuant to the following amortization schedule:

    a. If the violation occurs within five (5) years following the recordation of the restrictive covenant, 100% of the grant amount;

    b. If the violation occurs more than five (5) but less than six (6) years following the recordation of the restrictive covenant, 80% of the grant amount;

    c. If the violation occurs more than six (6) but less than seven (7) years following the recordation of the restrictive covenant, 65% of the grant amount;

    d. If the violation occurs more than seven (7) but less than eight (8) years following the recordation of the restrictive covenant, 50% of the grant amount;

    e. If the violation occurs more than eight (8) but less than nine (9) years following the recordation of the restrictive covenant, 35% of the grant amount; and

    f. If the violation occurs more than nine (9) but less than ten (10) years following the recordation of the restrictive covenant, 20% of the grant amount.

    (q)(p) Surety Bond.

    1. If a surety bond is chosen in lieu of recording a restrictive covenant, the grantee must:

    a. Purchase a surety bond prior to the release of grant funds from an insurer authorized to do business in Florida as a surety; and

    b. Include the sSurety bBond Addendum #2, Form CA2E109, eff. 5/06, incorporated by reference and available from the Division, as an addendum to the grant award agreement;

    2.c. The following shall be iIncluded in the surety bond:

    a. Tthat the facility described in the grant award agreement will be used as a cultural facility for (10) ten years following the date of issue of the surety bond execution date of the grant award agreement, and that failure to do so shall constitute a violation of the surety bond;

    b.d. Include in the bond Tthat in the event of violation, the surety shall reimburse the Division pursuant to the amortization schedule set forth below.

    3.2. A certified copy of the surety bond must be provided to the Division prior to the release of grant award funds.

    4.3. If the surety bond is violated, the surety shall reimburse the Division pursuant to the following amortization schedule:

    a. If a violation occurs within three (3) years following the date of issue of the surety bond execution of the grant award agreement, 100% of the grant amount;

    b. If a violation occurs more than three (3) but less than four (4) years following the date of issue of the surety bond execution of the grant award agreement, 80% of the grant amount;

    c. If a violation occurs more than four (4) but less than five (5) years following the date of issue of the surety bond execution of the grant award agreement, 70% of the grant amount;

    d. If a violation occurs more than five (5) but less than six (6) years following the date of issue of the surety bond execution of the grant award agreement, 60% of the grant amount;

    e. If a violation occurs more than six (6) but less than seven (7) years following the date of issue of the surety bond execution of the grant award agreement, 50% of the grant amount;

    f. If a violation occurs more than seven (7) but less than eight (8) years following the date of issue of the surety bond execution of the grant award agreement, 40% of the grant amount.

    g. If a violation occurs more than eight (8) but less than nine (9) years following the date of issue of the surety bond execution of the grant award agreement, 30% of the grant amount; and

    h. If a violation occurs more than nine (9) but less than ten (10) years following the date of issue of the surety bond execution of the grant award agreement, 20% of the grant amount.

    Specific Authority 255.043(4), 265.284(5)(d), 265.285(1)(c), 265.286(1), (4), (6), 265.2861(2)(b), 265.2865(6), 265.605(1), 265.608(1), 265.609(1), (4), 265.701(4), 265.702(8) FS. Law Implemented 215.97, 255.043, 265.284, 265.285, 265.286, 265.2861, 265.2865, 265.601-.603, 265.605-.607, 265.608, 265.609, 265.701, 265.702, 286.011, 286.012, 286.25 FS. History–New 112382, Formerly 1T1.01, Amended 10196, 103196, 2297, 6297, 71797, 91097, 1498, 72698, 8298, 10598, 102598, 8-17-99, 8-1-02, 12-29-02, 10-14-03(17), 10-14-03(20), 11-16-03, 2-2-05, 5-16-05, 6-21-05, 12-20-05, 5-22-06, 6-5-06, 6-27-06, __________.


    NAME OF PERSON ORIGINATING PROPOSED RULE: Donald R. Blancett
    NAME OF SUPERVISOR OR PERSON WHO APPROVED THE PROPOSED RULE: Sandy Shaughnessy
    DATE PROPOSED RULE APPROVED BY AGENCY HEAD: March 31, 2008
    DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: Vol. 34, No. 8, February 22, 2008

Document Information

Comments Open:
4/18/2008
Summary:
The proposed rule details application submission, eligibility criteria, application procedures, matching funds, evaluation criteria, reporting requirements, and grant administration.
Purpose:
The purpose of this proposed amendment is to establish in rule the most recent eligibility criteria, application submission criteria including the required use of the Division’s new on-line grants system; and criteria related to compliance with and the recordation of restrictive covenants or surety bonds in compliance with Section 265.701(4), FS.
Rulemaking Authority:
255.043(4), 265.284(5)(d), 265.285(1)(c), 265.286(1), (4), (6), 265.2861(2)(b), 265.2865(6), 265.605(1), 265.608(1), 265.609(1), (4), 265.701(4), 265.702(8) FS.
Law:
215.97, 255.043, 265.284, 265.285, 265.286, 265.2861, 265.2865, 265.601-.603, 265.605-.607, 265.608, 265.609, 265.701, 265.702, 286.011, 286.012, 286.25 FS.
Contact:
Donald R. Blancett, Division of Cultural Affairs, R. A. Gray Building, 3rd Floor, 500 South Bronough Street, Tallahassee, Florida 32399-0250
Related Rules: (1)
1T-1.001. Division of Cultural Affairs