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House Bill 0129c1

Florida House of Representatives - 1997 CS/HB 129 By the Committee on Education Innovation and Representatives Gay, Livingston and Feeney 1 A bill to be entitled 2 An act relating to investments in education; 3 creating the Florida Education Technology 4 Foundation for certain purposes; providing for 5 a board of directors; providing for membership; 6 providing for appointing members; providing for 7 electing members; providing duties of the 8 board; providing for creation of Florida's 9 Future Investment Funds for certain purposes; 10 providing for investment of moneys in such 11 funds; providing for donating certain revenues 12 to the foundation; providing for contributing a 13 portion of investment interest to the 14 foundation for certain purposes; providing for 15 a reduced intangibles tax rate on securities in 16 Florida's Future Investment Funds under certain 17 circumstances; providing an effective date. 18 19 Be It Enacted by the Legislature of the State of Florida: 20 21 Section 1. (1) The purpose of this section is to 22 provide a mechanism by which the business community in this 23 state can directly participate in providing assistance to the 24 growth and development of education enhancement in this state 25 through contributions to special state-sponsored investment 26 funds. The purpose of such funds is to provide funding for 27 computers, computer technology, training in computer 28 education, and scholarships for business-related careers for 29 the education system, including kindergarten through twelfth 30 grade, community colleges, and universities. 31 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 129 603-100-97 1 (2) The Florida Education Technology Foundation is 2 hereby created as a nonprofit corporation for the purpose of 3 establishing a series of state-sponsored investment funds to 4 be known as Florida's Future Investment Funds. The purpose of 5 such funds is to provide a source of revenue which shall be 6 used by the foundation to provide funding for: 7 (a) Buying and maintaining computers and 8 computer-related technology for all levels of the education 9 system in this state. 10 (b) Training teachers and faculty to use computer 11 equipment and technology and to teach the effective use of 12 computer equipment and technology. 13 (c) Scholarships for business-related fields. 14 (3) The foundation shall be governed by a board of 15 directors consisting of 11 members, one of whom shall be the 16 Commissioner of Education or his or her designee, one of whom 17 shall be the Treasurer or his or her designee, one of whom 18 shall be appointed by the President of the Senate, one of whom 19 shall be appointed by the Speaker of the House of 20 Representatives, and the remaining 7 of whom shall initially 21 be appointed by the Florida Council of 100 from membership of 22 the council and thereafter shall be elected by the 23 corporations and businesses which contribute moneys to a 24 Florida's Future Investment Fund. Of the first members 25 appointed by the Florida Council of 100, three shall be 26 appointed for a term of 1 year and four shall be appointed for 27 a term of 2 years. Thereafter, those members shall be elected 28 and shall serve for terms of 4 years. Each corporation shall 29 receive one vote for investing up to $25 million in a 30 Florida's Future Investment Fund and shall receive an 31 additional vote for each additional investment of $25 million. 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 129 603-100-97 1 A chair shall be elected by the members of the board and the 2 board shall meet at the call of the chair. In no event shall 3 the state be liable for the actions of the foundation or the 4 fund managers. 5 (4) The foundation shall establish Florida's Future 6 Investment Funds for the purpose of investing moneys placed in 7 such funds by corporations and businesses in this state and 8 receiving a portion of such interest to be used as provided in 9 subsection (2). The board of directors shall provide for the 10 administration and management of such funds to maximize the 11 return on investment of moneys in such funds. The board of 12 directors may hire outside managers to administer and invest 13 the moneys in the Florida's Future Investment Funds. The 14 board shall prescribe the level of prudence and ethical 15 standards to be followed by the fund managers. It is the 16 intent of the Legislature that administrative fees be as low 17 as possible. The staff of the Commissioner of Education shall 18 serve as support staff for the board of directors. 19 (5) It is the intent of the Legislature that any 20 corporation or business participating in a Florida's Future 21 Investment Fund contribute a portion of the interest earned on 22 investments of moneys in the fund to the Florida Education 23 Technology Foundation to be used as provided in subsection 24 (2). The portion of interest earned and donated may be 25 determined by action of the board of directors of the 26 foundation. 27 Section 2. (1) Notwithstanding the provisions of 28 chapter 199, Florida Statutes, the tax imposed under s. 29 199.032, Florida Statutes, on securities in a Florida's Future 30 Investment Fund shall apply at the rate of 1.85 mills when the 31 average daily balance in such funds exceeds $2 billion and at 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 CS/HB 129 603-100-97 1 the rate of 1.70 mills when the average daily balance in such 2 funds exceeds $5 billion. 3 (2) This section shall not apply in any year in which 4 the revenues of the foundation in the previous calendar year 5 are less than the tax savings allowed by this section. "Tax 6 savings" means the difference between the tax that would be 7 imposed pursuant to s. 199.032, Florida Statutes, and the tax 8 rate specified in subsection (1). 9 Section 3. This act shall take effect upon becoming a 10 law. 11 12 ***************************************** 13 HOUSE SUMMARY 14 Creates the Florida Education Technology Foundation for 15 the purpose of receiving moneys from interest from investments of moneys in Florida's Future Investment 16 Funds and providing funding to schools, community colleges, and universities for computers, computer 17 technology, computer-education training, and scholarships in business-related fields. See bill for details. 18 19 20 21 22 23 24 25 26 27 28 29 30 31 4