Florida Regulations 69I-3.001: Consolidated Equipment Financing Program
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(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 Florida Statutes § 287.064(1), 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 Florida Statutes § 287.064(1)
(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 Florida Statutes § 287.064, for the purpose of implementing a consolidated financing program for the acquisition of equipment by deferred payment purchases, as defined by Florida Statutes § 287.064(1), 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 Florida Statutes § 287.064(10), 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 Florida Statutes § 489.145
(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 Florida Statutes § 287.064
(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 Florida Statutes § 287.063(3)
(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 Florida Statutes § 287.064 (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 Florida Statutes § 287.064(2) and seek an exemption according to Fl. Admin. Code R. 69I-3.004
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 Florida Statutes § 287.063, unless specifically exempted pursuant to Fl. Admin. Code R. 69I-3.004, and Florida Statutes § 287.064
(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 Fl. Admin. Code R. 69I-3.004
(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 Florida Statutes § 489.145, 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 Fl. Admin. Code R. 19A-5.0035
(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. History-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.
Terms Used In Florida Regulations 69I-3.001
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Baseline: Projection of the receipts, outlays, and other budget amounts that would ensue in the future without any change in existing policy. Baseline projections are used to gauge the extent to which proposed legislation, if enacted into law, would alter current spending and revenue levels.
- Contract: A legal written agreement that becomes binding when signed.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(b) “”Agency”” for purposes of this rule, means any eligible participant in the Program, including the state or its agencies, as authorized by Florida Statutes § 287.064(1), 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 Florida Statutes § 287.064(1)
(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 Florida Statutes § 287.064, for the purpose of implementing a consolidated financing program for the acquisition of equipment by deferred payment purchases, as defined by Florida Statutes § 287.064(1), 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 Florida Statutes § 287.064(10), 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 Florida Statutes § 489.145
(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 Florida Statutes § 287.064
(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 Florida Statutes § 287.063(3)
(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 Florida Statutes § 287.064 (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 Florida Statutes § 287.064(2) and seek an exemption according to Fl. Admin. Code R. 69I-3.004
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 Florida Statutes § 287.063, unless specifically exempted pursuant to Fl. Admin. Code R. 69I-3.004, and Florida Statutes § 287.064
(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 Fl. Admin. Code R. 69I-3.004
(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 Florida Statutes § 489.145, 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 Fl. Admin. Code R. 19A-5.0035
(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. History-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.