Current through Reg. 50, No. 187; September 24, 2024
(1) For the purposes of this rule chapter,
the following definitions shall be used:
(a)
"Additional Services" means administrative and any other services associated
with managing the Consolidated Equipment Financing Program.
(b) "Agency" for purposes of this rule, means
any eligible participant in the Program, including the state or its agencies,
as authorized by section
287.064(1),
F.S., each department, agency, board and commission in the executive branch,
the judicial branch and the legislative branch of Florida government.
(c) "Chief Financial Officer" means the head
of the Department of Financial Services, whose deferred payment commodity
contracting duties are carried out by and through its Division of Accounting
and Auditing. However, the Chief Financial Officer's duty to execute the master
equipment financing agreements is not delegated to the division.
(d) "Educational Institution" means state
universities and state community colleges who also participate in the
Consolidated Equipment Financing Program as authorized by section
287.064(1),
F.S.
(e) "Interagency Agreement"
means an equipment financing agreement between a financial institution and the
Agency or Educational Institution, based on the executed Master Equipment
Financing Agreement. The respective Agency or Educational Institution is
responsible for all payments under its completed and approved Interagency
Agreement. Equipment purchased by the Interagency Agreement shall be directly
billed by the financial institution to the respective Agency or Educational
Institution.
(f) "Master Equipment
Financing Agreement" means a master equipment financing agreement to be
executed pursuant to section
287.064, F.S., for the purpose
of implementing a consolidated financing program for the acquisition of
equipment by deferred payment purchases, as defined by section
287.064(1),
F.S., made by or on behalf of the State of Florida or its agencies or by or on
behalf of Educational Institutions. The term "Master Equipment Financing
Agreement" includes all agreements and contracts necessary or convenient for
the establishment of a Master Equipment Financing Agreement.
(g) "Master Equipment Financing Agreement for
Conservation Measures" means a master equipment financing agreement to be
executed pursuant to section
287.064(10),
F.S., for the purpose of implementing a consolidated financing program for the
financing of the cost of energy, water, or wastewater efficiency and
conservation measures ("Conservation Measures") as defined in section
489.145, F.S.
(h) "Program" means the Consolidated
Equipment Financing Program, which shall consist of the program of financing
the deferred payment purchases of equipment on behalf of the State, Educational
Institutions or State Agencies pursuant to section
287.064, F.S.
(i) "Rent" means the amount of payment for a
period as defined in an Interagency Agreement within a Master Equipment
Financing Agreement.
(2)
An Agency or Educational Institution that desires to make deferred payment
purchases shall make a written request to participate in the Program. An Agency
shall make a written request for exemption from the Program. The Legislature is
not required to request an exemption and is exempt from the Program pursuant to
section 287.063(3),
F.S.
(a) An Agency or Educational Institution
that desires to finance or refinance existing deferred payment purchases
through the Program shall make a written request to participate in the Program.
An Agency or Educational Institution requesting permission to participate in
the Program must submit to the Chief Financial Officer for preaudit review and
approval the following:
1. A completed and
executed Form DFS-A1-410 (for purchases under the Consolidated Equipment
Financing Program) Application to Finance Equipment per section
287.064, F.S. (Revised 5-4-10).
The Form is hereby incorporated by reference, can be viewed at
http://www.myfloridacfo.com/aadir/,
and is available from the Division of Accounting and Auditing, Bureau of
Accounting, 200 East Gaines Street, Tallahassee, Florida 32399-0354.
2. A statement documenting whether the
equipment is new or used and, if the equipment is used, whether the equipment
is currently financed under an installment purchase contract approved by the
Chief Financial Officer and, if so, state the date of approval by the Chief
Financial Officer and the Chief Financial Officer approval number
assigned.
3. A statement
documenting the proposed original term and renewal terms under the Interagency
Agreement and the anticipated remaining useful economic life of the
equipment.
4. A statement
certifying that the deferred payment commodity contract does not exceed the
useful life of the equipment unless the contract provides for the replacement
or the extension of the useful life of the equipment during the term of the
loan.
5. If the equipment purchase
financing term is beyond 5 years, the Agency must seek an exemption from the
Program pursuant to section
287.064(2),
F.S. and seek an exemption according to rule
69I-3.004, F.A.C.
6. Documentation to substantiate that the
annualized amounts of any deferred payment commodity contract are supported
from available recurring funds available to make the payments under the
Interagency Agreement as they become due. Available recurring funds must be
appropriated to the Agency in an appropriation category as defined in section
287.064(11)
F.S., determined by the Chief Financial Officer as appropriate, or designated
by the Legislature for payment of the obligation incurred under sections
287.064 or
489.145, F.S., as applicable. In
accordance with section 216.023(4)(a)9., F.S., supporting information for any
proposed consolidated financing of deferred payment commodity contracts must
also include a narrative describing and justifying the need, baseline for
current costs, estimated cost savings, projected equipment purchases, estimated
contract costs, and return on investment calculation.
7. Documentation to substantiate that the
Agency or Educational Institution has complied with all applicable requirements
to lawfully procure the equipment.
8. Documentation to substantiate that the
purchase by deferred payment is economically beneficial to the State or that
failure to make the purchase will adversely affect the Agency's or Educational
Institution's performance of its duties.
(b) An Agency or Educational Institution
financing the acquisition of equipment shall provide the information required
in paragraph (2)(a), at least twenty-one days prior to the anticipated date of
awarding the contract for such equipment.
(c) Any contract for equipment, the payment
of which is anticipated to be made by deferred payment and the payment of
interest, shall specify that the award of such contract is contingent upon
approval pursuant to section
287.063, F.S., unless
specifically exempted pursuant to rule
69I-3.004, F.A.C., and section
287.064,
F.S.
(3) The Chief
Financial Officer may exempt any equipment from financing under the Program
when alternative financing would be cost effective or otherwise beneficial to
the State. The factors to be examined by the Chief Financial Officer to
determine whether the equipment may be deemed exempt from the Program, as
stated in rule 69I-3.004, F.A.C.
(4) Agencies or Educational Institutions may
use a Master Equipment Financing Agreement for Conservation Measures, pursuant
to section 287.064(10)(a),
F.S., to finance the cost of energy, water, or wastewater efficiency and
conservation measures in accordance with section
489.145, F.S., excluding the
costs of training, operation, and maintenance, for a term of repayment that may
exceed 5 years but may not exceed 20 years. The term for repayment may not
extend beyond the weighted average useful life of the Conservation Measures
financed. The contract shall provide for the replacement or the extension of
the useful life of the equipment during the term of repayment. An Agency or
Educational Institution that desires to make deferred payment purchases of
Conservation Measures shall make a written request to use a Master Equipment
Financing Agreement for Conservation Measures. An Agency or Educational
Institution requesting permission to use a Master Equipment Financing Agreement
for Conservation Measures must submit to the Chief Financial Officer for
preaudit review and approval based on the following:
(a) A completed Form DFS-A1-413 (for
purchases under the Consolidated Equipment Financing Program for Conservation
Measures) Application to Finance Conservation Measures (eff. 5-4-10). Form
DFS-A1-413 is hereby incorporated by reference and is available from the
Division of Accounting and Auditing, Bureau of Accounting, 200 East Gaines
Street, Tallahassee, Florida 32399-0354.
(b) Items in subparagraphs (2)(a)2. through
4. and 6. through 8., above.
(5) If equipment is eligible for financing
under more than one master equipment financing agreement, the Chief Financial
Officer shall determine which Master Equipment Financing Agreement shall be
utilized. The factors to be examined to determine whether the equipment is
eligible for financing under more than one master equipment financing agreement
shall include the following:
(a) The type or
category of the equipment;
(b) The
useful life of the equipment;
(c)
The length of the proposed original term and renewal terms of the Interagency
Agreement; and,
(d) Availability of
funds under the Master Equipment Financing Agreement.
(6) The Chief Financial Officer may, when
stipulated in the Master Equipment Financing Agreement, automatically debit or
otherwise collect from each Agency the rent payments on Interagency Agreements.
The payments or any fractional part thereof under an Interagency Agreement may
be prorated by the Chief Financial Officer and, whether or not prorated, shall
be payable on the commencement date of the Interagency Agreement and thereafter
the rent payment may, when stipulated in the Master Equipment Financing
Agreement, be automatically debited or otherwise collected pursuant to the
Interagency Agreement.
(7) The
Chief Financial Officer shall calculate and determine compliance with any
interest rate limitations applicable to the Interagency Agreement or any Master
Equipment Financing Agreement. For the purpose of determining compliance with
interest rate limitations on any Interagency Agreement, interest rates shall
not include administrative costs, surcharges and insurance expense related to
the Program.
(8) For the purpose of
determining the useful life of equipment, the factors to be considered by the
Chief Financial Officer shall include the following:
(a) The type or category of
equipment;
(b) Whether the
equipment is new or used;
(c) The
condition of the equipment;
(d) The
period of intended use; and,
(e)
Purpose of the equipment.
(9) The procedure for the negotiation and
execution of Master Equipment Financing Agreements is as follows:
(a) Upon the receipt of a written request by
the Chief Financial Officer, the Division of Bond Finance of the State Board of
Administration shall negotiate Master Equipment Financing Agreements. The
procurement and negotiation of Master Equipment Financing Agreements shall be
according to rule 19A-5.0035, F.A.C.
(b) Upon the Chief Financial Officer's
acceptance of the terms and conditions of a Master Equipment Financing
Agreement negotiated by the Division of Bond Finance, the Chief Financial
Officer shall execute the Master Equipment Financing
Agreement.
Rulemaking Authority
17.29,
287.064(8) FS.
Law Implemented 287.063,
287.064
FS.
New 9-10-86, Amended 12-20-94, 5-12-97, 1-27-98, 9-13-99,
Formerly 3A-3.001, Amended 5-4-10.
