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House Bill 0129e1

CS/HB 129, First Engrossed 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; creating s. 212.0602, F.S.; 18 exempting certain educational entities, 19 institutions, or organizations from the sales 20 and use tax under certain limited 21 circumstances; providing an effective date. 22 23 Be It Enacted by the Legislature of the State of Florida: 24 25 Section 1. (1) The purpose of this section is to 26 provide a mechanism by which the business community in this 27 state can directly participate in providing assistance to the 28 growth and development of education enhancement in this state 29 through contributions to special state-sponsored investment 30 funds. The purpose of such funds is to provide funding for 31 computers, computer technology, training in computer 1 CODING: Words stricken are deletions; words underlined are additions. CS/HB 129, First Engrossed 1 education, and scholarships for business-related careers for 2 the education system, including kindergarten through twelfth 3 grade, community colleges, and universities. 4 (2) The Florida Education Technology Foundation is 5 hereby created as a nonprofit corporation for the purpose of 6 establishing a series of state-sponsored investment funds to 7 be known as Florida's Future Investment Funds. The purpose of 8 such funds is to provide a source of revenue which shall be 9 used by the foundation to provide funding for: 10 (a) Buying and maintaining computers and 11 computer-related technology for all levels of the education 12 system in this state. 13 (b) Training teachers and faculty to use computer 14 equipment and technology and to teach the effective use of 15 computer equipment and technology. 16 (c) Scholarships for business-related fields. 17 (3) The foundation shall be governed by a board of 18 directors consisting of 11 members, one of whom shall be the 19 Commissioner of Education or his or her designee, one of whom 20 shall be the Treasurer or his or her designee, one of whom 21 shall be appointed by the President of the Senate, one of whom 22 shall be appointed by the Speaker of the House of 23 Representatives, and 3 of whom shall initially be appointed by 24 the Florida Council of 100 from membership of the council and 25 thereafter shall be elected by the corporations and businesses 26 which contribute moneys to a Florida's Future Investment Fund. 27 The remaining 4 members shall be appointed by the board of 28 directors of Enterprise Florida, Inc., from the membership of 29 the board of directors of Enterprise Florida, Inc., and shall 30 serve for terms of 2 years. Of the first members appointed by 31 the Florida Council of 100, two shall be appointed for a term 2 CODING: Words stricken are deletions; words underlined are additions. CS/HB 129, First Engrossed 1 of 1 year and one shall be appointed for a term of 2 years. 2 Thereafter, those members shall be elected and shall serve for 3 terms of 4 years. Each corporation shall receive one vote for 4 investing up to $25 million in a Florida's Future Investment 5 Fund and shall receive an additional vote for each additional 6 investment of $25 million. A chair shall be elected by the 7 members of the board and the board shall meet at the call of 8 the chair. In no event shall the state be liable for the 9 actions of the foundation or the fund managers. 10 (4) The foundation shall establish Florida's Future 11 Investment Funds for the purpose of investing moneys placed in 12 such funds by corporations and businesses in this state and 13 receiving a portion of such interest to be used as provided in 14 subsection (2). The board of directors shall provide for the 15 administration and management of such funds to maximize the 16 return on investment of moneys in such funds. The board of 17 directors may hire outside managers to administer and invest 18 the moneys in the Florida's Future Investment Funds. The 19 board shall prescribe the level of prudence and ethical 20 standards to be followed by the fund managers. It is the 21 intent of the Legislature that administrative fees be as low 22 as possible. The staff of the Commissioner of Education shall 23 serve as support staff for the board of directors. 24 (5) It is the intent of the Legislature that any 25 corporation or business participating in a Florida's Future 26 Investment Fund contribute a portion of the interest earned on 27 investments of moneys in the fund to the Florida Education 28 Technology Foundation to be used as provided in subsection 29 (2). The portion of interest earned and donated may be 30 determined by action of the board of directors of the 31 foundation. 3 CODING: Words stricken are deletions; words underlined are additions. CS/HB 129, First Engrossed 1 Section 2. (1) Notwithstanding the provisions of 2 chapter 199, Florida Statutes, the tax imposed under s. 3 199.032, Florida Statutes, on securities in a Florida's Future 4 Investment Fund shall apply at the rate of 1.85 mills when the 5 average daily balance in such funds exceeds $2 billion and at 6 the rate of 1.70 mills when the average daily balance in such 7 funds exceeds $5 billion. 8 (2) This section shall not apply in any year in which 9 the revenues of the foundation in the previous calendar year 10 are less than the tax savings allowed by this section. "Tax 11 savings" means the difference between the tax that would be 12 imposed pursuant to s. 199.032, Florida Statutes, and the tax 13 rate specified in subsection (1). 14 Section 3. Section 212.0602, Florida Statutes, is 15 created to read: 16 212.0602 Education; limited exemption.--To facilitate 17 investment in education and job training, there is also 18 exempt, subject to the provisions of this section, from the 19 taxes levied under this chapter any entity, institution, or 20 organization which is primarily engaged in teaching students 21 to perform any of the activities or services described in s. 22 212.031(1)(a)9., which conducts classes at a fixed location 23 located in this state, is licensed under chapter 246, and has 24 at least 500 enrolled students. Any entity, institution or 25 organization meeting the requirements of this section shall be 26 deemed to qualify for the exemptions in sections 212.08(5)(f), 27 212.08(12), and to qualify for an exemption for its purchase 28 or lease of materials, equipment, and other items used for 29 education or demonstration of the school's curriculum. 30 Nothing herein shall preclude an entity described in this 31 4 CODING: Words stricken are deletions; words underlined are additions. CS/HB 129, First Engrossed 1 section from qualifying for any other exemption provided for 2 in this chapter. 3 Section 4. This act shall take effect upon becoming a 4 law. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 5