DEPARTMENT OF ECONOMIC OPPORTUNITY
Division of Community Development
RULE NOS.:RULE TITLES:
73C-1.001Definitions and Forms
73C-1.002Application Process
73C-1.003Certification Decision
NOTICE OF CHANGE
Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 40, No. 45, March 6, 2014 issue of the Florida Administrative Register.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.
The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs, or if no SERC is required, the information expressly relied upon and described herein: The agency has performed a review of the statutory requirements and has determined that its proposed Rules 73C-1.001, 1.002, and 1.003, F.A.C., have no adverse impact or regulatory costs which exceed any of the criteria established in Section 120.541(2)(a), Florida Statutes. The rules are therefore expected be able to take effect without the need of being ratified by the Legislature.
73C-1.001 Definitions and Forms.
(4) “Conflict Statement” means the Florida Department of Economic Opportunity Form DEO/CD 7102-3, http://sitefinity.floridajobs.org/business-growth-and-partnerships/for-businesses-and-entrepreneurs/business-resources/minority-owned-business-assistance; effective date:__________, 2014, which is hereby adopted and incorporated by reference a quarterly written certification by a Recipient’s governing board that no board member, employee, agent, or other person, connected to or affiliated with the Recipient is receiving, or will receive, any type of compensation or remuneration from a black business enterprise that receives funds pursuant to the Program.
(9) “Instance(s) of Material Noncompliance” occur(s) when a financial audit reveals a violation of, or a failure by an Applicant to follow, the compliance requirements of any applicable state or federal law or the Applicant's most recent fiscal year program agreement. An Instance of Material Noncompliance can occur through an individual violation, through the failure to follow compliance requirements, or can be aggregated with multiple violations or failures to follow compliance requirements. An audit which reveals or has a finding that is not specifically labeled as an Instance of Material Noncompliance shall be considered to be an Instance of Material Noncompliance if it otherwise meets this definition.
(14) “Program Funds” or “State Funds” are all funds provided by the Department to a Recipient under the Program as well as all income and return of equity Income and Return of Equity generated through the use of those funds. All such funds shall revert back to the Department, and all evidence of an obligation to repay Program Funds including, but not limited to, promissory notes, mortgages, stock certificates, judgments, and liens, shall be assigned to the Department should any of the following occur: expiration or termination of the agreement between the Department and a Recipient, decertification of a Recipient, denial of recertification of an Existing Recipient, or the Program is allowed to sunset or is repealed by the Florida Legislature.
(16) “Submit” or “Submitted” means the business date a document is received by the Department during normal business hours: Monday through Friday, 8:00 a.m. to 5:00 p.m. If a document is received after 5:00 p.m. or on a weekend or legal holiday, it shall be deemed submitted on the next business day (a day that is not a Saturday, Sunday or legal holiday).
Rulemaking Authority 288.7102(7) FS. Law Implemented 288.7094(2), 288.7102 FS. History–New 9-1-08, Amended 10-10-10, Formerly 27M-3.001, Amended__________.
73C-1.002 Application Process.
(1) This Chapter applies to any Applicant, as defined in Rule 73C-1.001, F.A.C., that is seeking to receive funds under the Program. An Applicant shall submit an Application for Certification or an Application for Recertification to the Department during the Application Period. The Department will only process complete submissions received, using the appropriate forms, as identified below, which are available from the Department of Economic Opportunity at 107 East Madison Street, Mail Station 160, Caldwell Building, Tallahassee, Florida 32399-4128, or by going to: http://sitefinity.floridajobs.org/business-growth-and-partnerships/for-businesses-and-entrepreneurs/business-resources/minority-owned-business-assistance:
(a) Application for Certification as a Recipient of Funds, Florida Department of Economic Opportunity Form DEO/CD 7102-1, http://sitefinity.floridajobs.org/business-growth-and-partnerships/for-businesses-and-entrepreneurs/business-resources/minority-owned-business-assistance; effective date:________, 2014 2013, which is hereby adopted and incorporated by reference.
(b) Application for Recertification as a Recipient of Funds, Florida Department of Economic Opportunity Form DEO/CD 7102-2, http://sitefinity.floridajobs.org/business-growth-and-partnerships/for-businesses-and-entrepreneurs/business-resources/minority-owned-business-assistance; effective date:________, 2014 2013, which is hereby adopted and incorporated by reference.
(2) An Applicant must submit its application using the application processes as provided in this Chapter. Each application will be evaluated for completeness. No Applicant will receive certification until the Department is able to verify the requirements set forth in section 288.7102, F.S. Applicants must provide assistance to the Department when verification is necessary. Some examples of Applicant assistance are as follows:
(a) Provide more detailed information or explanation to the Department in writing; or
(b) Provide the methods of the calculations used in the application process;
(c) Discuss any concerns the Department may have with a submitted application.
Rulemaking Authority 288.7102(7) FS. Law Implemented 288.7094(2), 288.7102 FS. History–New 9-1-08, Amended 10-10-10, Formerly 27M-3.002, Amended__________.
73C-1.003 Program Implementation.
In addition to the requirements set forth in Section 288.7102, F.S., and this Chapter, a Recipient must meet the performance conditions provided for in the agreement it enters into with the Department in order to remain qualified to receive funds under the Program. Any award of funds under the Program is conditioned upon their availability and upon a Certified Applicant’s execution of an agreement with the Department.
(1) Quarterly submission of a Conflict Statement.
(a) In addition to the requirements provided in Section 288.714, F.S., all Recipients receiving funds under the Program shall provide the Department with a Conflict Statement quarterly. Upon the written request of a Recipient the The Department may waive a conflict of interest if the following apply: good cause is shown
(i) The nature of the conflict is fully disclosed,
(ii) The person or entity requesting the loan belongs to the group intended to be the beneficiaries of the loan program and the waiver will permit the person or entity to receive generally the same interests or benefits as are being made available or provided to the group as a whole, and
(iii) The person who has the potential conflict of interest has withdrawn from all responsibility or participation in the loan decision-making process.
(b) Falsifying or misrepresenting information or the existence of a conflict within a Conflict Statement will be grounds may be considered as grounds for the immediate termination of the agreement by the Department and for the decertification of a Recipient. Any previously granted waivers by the Department of a conflict shall not exempt its disclosure in a Conflict Statement.
(3) Quarterly Reports.
(a) In addition to the reporting requirements provided for in Section 288.714, F.S., a Recipient’s quarterly report shall include a detailed summary of the Recipient’s performance duties imposed under the agreement it enters into with the Department.
(b) Based upon a Recipient’s quarterly report, the Department shall may deny Direct Administrative Costs that do not advance the purpose of the Program as defined in Section 288.7102(10), F.S. The Department’s denial shall be in writing and is subject to review under Chapter 120, F.S.
(4) Technical Support and Technical Assistance.
(a) In the quarterly reports provided to the Department, and as further described in Section 288.714, F.S., a Recipient shall describe the nature and amount of all Technical Support and Technical Assistance it has provided during that quarter to black business enterprises.
(b) Based upon a Recipient’s quarterly reporting of funds used as Technical Support and Technical Assistance, the Department shall may deny funds so expended that do not advance the purpose of the Program as defined in Section 288.7102(10), F.S. The Department’s denial shall be in writing and is subject to review under Chapter 120, F.S.
(5) Financial Audits.
(a) The Department will evaluate all financial audits received pursuant to Section 288.7102, F.S. in order to determine if an Instance of Material Noncompliance or a Material Weakness is revealed.
(b) If a the financial audit received by the Department indicates or Department determines that any item submitted by a Recipient reveals an Instance of Material Noncompliance, a Material Weakness, or both, that cannot be cured within a reasonable time, the Department shall may deny an application or terminate the agreement pursuant to its terms.
Rulemaking Authority 288.714, 288.7102(7) FS. Law Implemented 288.7094(2), 288.714, 288.7102 FS. History–New 9-1-08, Amended 10-10-10, Formerly 27M-3.003, Amended__________.
Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 40, No. 45, March 6, 2014, issue of the Florida Administrative Register, Forms DEO/CD 7102-1, DEO/CD 7102-2, and DEO/CD 7102-3, as incorporated by reference, have been changed. The changes are in response to written comments submitted by the staff of the Joint Administrative Procedures Committee and now more accurately reflect the requirements of Section 288.7102, F.S.
