The purpose of this amendment is to: 1. Create a new rule number, Cultural Facilities Program, Rule 1T-1.039, F.A.C., that establishes eligibility criteria, application procedures, matching funds, panel review criteria, scoring criteria, ...

DEPARTMENT OF STATE
Division of Cultural Affairs

RULE NO: RULE TITLE
1T-1.001: Division of Cultural Affairs
1T-1.039: Cultural Facilities Program
PURPOSE AND EFFECT: The purpose of this amendment is to:
1. Create a new rule number, Cultural Facilities Program, Rule 1T-1.039, F.A.C., that establishes eligibility criteria, application procedures, matching funds, panel review criteria, scoring criteria, Legislative review, reporting requirements, grant administration forms, program guidelines, and criteria related to compliance and the recordation of restrictive covenants for the Cultural Facilities Program.
2. Repeal subsection 1T-1.001(3), F.A.C., and incorporate the program information into the new Cultural Facilities Program Rule 1T-1.039, F.A.C.
SUMMARY: The proposed rule incorporates the program information from subsection 1T-1.001(3), F.A.C., into Rule 1T-1.039, F.A.C. The change consolidates information by incorporating by reference program guidelines, administrative forms, and restrictive covenants. The proposed rule repeals subsection 1T-1.001(3), F.A.C.
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: 265.605(1), 265.608(1), 265.609(1), (4), 265.701(5) FS.
LAW IMPLEMENTED: 265.701, 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(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: Monday, June 14, 2010, 9:30 a.m.
PLACE: Division of Cultural Affairs, R. A. Gray Building, 3rd Floor, 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 (2) No change.

(3) 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 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 cultural facility for a minimum of 10 years following the recordation of the restrictive covenant or date of issue of a surety bond. In those cases where the land or building(s) or both, are leased by an eligible 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 lease state-owned land or building(s) or both.

3. 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) Application Requirements. Applications shall consist of the following:

1. A completed Cultural Facilities Program Application shall be electronically submitted through the Division’s on-line application website at www.florida-arts.org on or before the application 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. A description of the Project Scope of Work, including a project narrative, the current phases, and the prior phases of the project.

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

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

e. 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. Documentation of unrestricted ownership or undisturbed use through an executed lease of the land or building(s) or both, related to the cultural facility for a minimum of 10 years following the recordation of the restrictive covenant or date of issue of a surety bond. Leases conditioned on the applicant’s receipt of grant funds do not qualify.

b. 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.

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

d. 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) 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 not submit 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.

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) 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.

(f) Matching Funds.

1. For eligible organizations with total support and revenue 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 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, 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) 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 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) The Florida Arts Council shall review the priority list and submit the recommendations to the Secretary of State.

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

(j) 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 submit the information in sub-subparagraphs (c)2.a.-c. above to report the 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.

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

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.

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

(l) Grant Award Agreement. The Grant Award Agreement (CA2E038, eff. 7/08) 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 (CA2E059, eff. 7/08, incorporated by reference and available from the Division at www.florida-arts.org).

3. A Request for Warrant (CA2E001, eff. 7/08) incorporated by reference and available on the Division’s Website at www.florida-arts.org.

4. A Grant Amendment Request (CA2E047, eff. 7/08) incorporated by reference and available on the Division’s Website at www.florida-arts.org.

5. 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. The Division may further extend the encumbrance and expenditure deadlines by not more than an additional 120 days each, 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) 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 (CA2E048, eff. 7/08) incorporated by reference and available on the Division’s Website at www.florida-arts.org, shall be submitted 45 days after the expenditure of grant and match, but no later than May 15th of the fiscal year following the fiscal year in which the grant was awarded.

3. All reports shall include the following:

a. A description of the work completed.

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

c. A state grant expenditure log (CA2E119, eff. 7/08) incorporated by reference and available on the Division’s Website at www.florida-arts.org, that includes check number, amount of check, date of check, name of payee, and a description of the expenditure.

(o) Definitions. For the purposes of this program, 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. 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 ten (10) years following the recordation of the restrictive covenant or date of issue of the surety bond.

(p) Restrictive Covenant.

1. If the grantee chooses to record a restrictive covenant, the grantee, and the property owner(s) if the land or buildings or both are leased by the grantee, shall execute and file a restrictive covenant 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:

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 ten (10) years from the date of the recordation of the restrictive covenant.

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.

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.

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.

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.

1. If a surety bond is chosen in lieu of recording a restrictive covenant, the grantee must:(q) Surety Bond.

a. Purchase a surety bond from an insurer authorized to do business in Florida as a surety; and

b. Include the surety bond as an addendum to the grant award agreement;

2. The following shall be included in the surety bond;

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

b. That in the event of violation, the surety shall reimburse the Division pursuant to the amortization schedule set forth below.

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

4. 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, 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, 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, 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, 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, 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, 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, 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, 20% of the grant amount.

Rulemaking Authority 265.605(1), 265.608(1), 265.609(1), (4), 265.701(5) FS. Law Implemented 265.285, 265.601-.603, 265.605-.606, 265.701 FS. History–New 11-23-82, Formerly 1T-1.01, Amended 10-1-96, 10-31-96, 2-2-97, 6-2-97, 7-17-97, 9-10-97, 1-4-98, 7-26-98, 8-2-98, 10-5-98, 10-25-98, 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, 8-20-07, 9-16-07, 1-8-08, 7-8-08, 9-8-08, 3-5-09, 6-17-09, 10-27-09,_________.

 

1T-1.039 Cultural Facilities Program.

(1) This rule provides the requirements for the Cultural Facilities Program administered by the Division of Cultural Affairs (Division). All grant applicants must meet the requirements set forth in the 2011-2012 guidelines, which are available from the Division at www.Florida-arts.org and are hereby incorporated by reference. The program guidelines contain eligibility requirements, application review procedures, evaluation and funding criteria, grant administration procedures, and application forms. All grant awards are subject to the approval of the Secretary of State and Legislative appropriation.

(2) The Cultural Facilities Program Application (Form CA2E147), effective 6/10; must be submitted on-line at www.Florida-arts.org, is available from the Division, and is hereby incorporated by reference.

(3) The following forms must be used in the administration of the Cultural Facilities Program and are hereby incorporated by reference and available at www.Florida-arts.org:

(a) Cultural Facilities Report Form (Form CA2E048), effective 6/10;

(b) State Funds Expenditure Log (Form CA2E119), effective 6/10;

(c) Grant Amendment Request (Form CA2E047), effective 6/10;

(d) Grant Award Agreement (Form CA2E038), effective 6/10;

(e) Request for Warrant (Form CA2E001), effective 6/10.

Rulemaking Authority 265.701(5) FS. Law Implemented 265.701 FS. History–New________.

 

Editorial Note: Formerly subsection 1T-1.001(3), F.A.C.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Donald R. Blancett, Division of Cultural Affairs, R. A. Gray Building, 3rd Floor, 500 South Bronough Street, Tallahassee, Florida 32399-0250

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Sandy Shaughnessy, Division of Cultural Affairs, R. A. Gray Building, 3rd Floor, 500 South Bronough Street, Tallahassee, Florida 32399-0250

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: May 4, 2010

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: March 26, 2010; Vol. 36, No. 12