Senate Bill 0564e1

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    SB 564                                         First Engrossed



  1                      A bill to be entitled

  2         An act relating to higher education; amending

  3         s. 240.299, F.S.; providing reporting

  4         requirements for university direct-support

  5         organizations; amending s. 240.311, F.S.,

  6         relating to rules of the State Board of

  7         Community Colleges; requiring a community

  8         college district board of trustees to annually

  9         evaluate the college president; amending s.

10         240.324, F.S.; providing an additional

11         requirement for the accountability plan for

12         community colleges; amending ss. 240.331,

13         240.3315, F.S.; prescribing membership of

14         boards of directors and executive committees of

15         community college direct-support organizations

16         and statewide community college direct-support

17         organizations; restricting activities of such

18         direct-support organizations; providing

19         reporting requirements for such organizations;

20         amending s. 240.3335, F.S.; removing the

21         authority of a board of directors of a center

22         of technology innovation to acquire, lease, or

23         sublease property; providing an appropriation;

24         providing an effective date.

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26  Be It Enacted by the Legislature of the State of Florida:

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28         Section 1.  Subsection (6) is added to section 240.299,

29  Florida Statutes, to read:

30         240.299  Direct-support organizations; use of property;

31  board of directors; audit; facilities.--


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    SB 564                                         First Engrossed



  1         (6)  ANNUAL BUDGETS AND REPORTS.--Each direct-support

  2  organization shall submit to the university president and the

  3  Board of Regents its federal Internal Revenue Service

  4  Application for Recognition of Exemption form (Form 1023) and

  5  its federal Internal Revenue Service Return of Organization

  6  Exempt from Income Tax form (Form 990).

  7         Section 2.  Paragraph (f) of subsection (3) of section

  8  240.311, Florida Statutes, is amended to read:

  9         240.311  State Board of Community Colleges; powers and

10  duties.--

11         (3)  The State Board of Community Colleges shall:

12         (f)  Specify, by rule, procedures to be used by the

13  boards of trustees in the annual periodic evaluations of

14  presidents and formally review the evaluations of presidents

15  by the boards of trustees.

16         Section 3.  Present paragraph (g) of subsection (1) of

17  section 240.324, Florida Statutes, is redesignated as

18  paragraph (h) and a new paragraph (g) is added to that

19  subsection, to read:

20         240.324  Community college accountability process.--

21         (1)  It is the intent of the Legislature that a

22  management and accountability process be implemented which

23  provides for the systematic, ongoing improvement and

24  assessment of the improvement of the quality and efficiency of

25  the State Community College System.  Accordingly, the State

26  Board of Community Colleges and the community college boards

27  of trustees shall develop and implement a plan to improve and

28  evaluate the instructional and administrative efficiency and

29  effectiveness of the State Community College System.  This

30  plan must address the following issues:

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    SB 564                                         First Engrossed



  1         (g)  Institutional assessment efforts related to the

  2  requirements of s. III in the Criteria for Accreditation of

  3  the Commission on Colleges of the Southern Association of

  4  Colleges and Schools.

  5         Section 4.  Section 240.331, Florida Statutes, is

  6  amended to read:

  7         240.331  Community college direct-support

  8  organizations.--

  9         (1)  DEFINITIONS.--For the purposes of this section:

10         (a)  "Community college direct-support organization"

11  means an organization that which is:

12         1.  A Florida corporation not for profit, incorporated

13  under the provisions of chapter 617 and approved by the

14  Department of State.

15         2.  Organized and operated exclusively to receive,

16  hold, invest, and administer property and to make expenditures

17  to, or for the benefit of, a community college in this state.

18  The direct-support organization may, at the request of the

19  district board of trustees, provide residency opportunities on

20  or near the college campus for students.  Community College

21  Program Fund and Public Education Capital Outlay funds may not

22  be used to construct, maintain, or operate such facilities.

23         3.  An organization that which the board of trustees,

24  after review, has certified to be operating in a manner

25  consistent with the goals of the community college and in the

26  best interest of the state.  Any organization that which is

27  denied certification by the board of trustees may shall not

28  use the name of the community college that which it serves.

29         (b)  "Personal services" includes full-time or

30  part-time personnel as well as payroll processing.

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    SB 564                                         First Engrossed



  1         (2)  BOARD OF DIRECTORS.--The chairperson of the board

  2  of trustees shall appoint a representative to the board of

  3  directors and the executive committee of each direct-support

  4  organization established under this section, including those

  5  established before July 1, 1998. The president of the

  6  community college for which the direct-support organization is

  7  established, or the president's designee, shall also serve on

  8  the board of directors and the executive committee of the

  9  direct-support organization, including any direct-support

10  organization established before July 1, 1998.

11         (3)(2)  USE OF PROPERTY.--

12         (a)  The board of trustees is authorized to permit the

13  use of property, facilities, and personal services at any

14  state community college by any community college

15  direct-support organization, subject to the provisions of this

16  section.

17         (b)  The board of trustees is authorized to prescribe

18  by rule any condition with which a community college

19  direct-support organization must comply in order to use

20  property, facilities, or personal services at any state

21  community college.

22         (c)  The board of trustees may shall not permit the use

23  of property, facilities, or personal services at any state

24  community college by any community college direct-support

25  organization that which does not provide equal employment

26  opportunities to all persons regardless of race, color,

27  national origin, sex, age, or religion.

28         (4)  ACTIVITIES; RESTRICTIONS.--

29         (a)  A direct-support organization may, at the request

30  of the district board of trustees, provide residency

31  opportunities on or near campus for students.


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    SB 564                                         First Engrossed



  1         (b)  A direct-support organization that constructs

  2  facilities for use by a community college or its students must

  3  comply with all requirements of this chapter relating to the

  4  construction of facilities by a community college, including

  5  requirements for competitive bidding.

  6         (c)  Any transaction or agreement between one

  7  direct-support organization and another direct-support

  8  organization or between a direct-support organization and a

  9  center of technology innovation designated under s. 240.3335

10  must be approved by the district board of trustees.

11         (5)  ANNUAL BUDGETS AND REPORTS.--Each direct-support

12  organization shall submit to the board of trustees its federal

13  Internal Revenue Service Application for Recognition of

14  Exemption form (Form 1023) and its federal Internal Revenue

15  Service Return of Organization Exempt From Income Tax form

16  (Form 990).

17         (6)(3)  ANNUAL AUDIT.--Each direct-support organization

18  shall make provisions for an annual postaudit of its financial

19  accounts to be conducted by an independent certified public

20  accountant in accordance with rules to be promulgated by the

21  district board of trustees.  The annual audit report must

22  shall be submitted to the Auditor General, the State Board of

23  Community Colleges, and the board of trustees for review.  The

24  board of trustees and the Auditor General may shall have the

25  authority to require and receive from the organization or from

26  its independent auditor any detail or supplemental data

27  relative to the operation of the organization.  The identity

28  of donors who desire to remain anonymous shall be protected,

29  and that anonymity shall be maintained in the auditor's

30  report.  All records of the organization, other than the

31  auditor's report, any information necessary for the auditor's


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    SB 564                                         First Engrossed



  1  report, any information related to the expenditure of funds,

  2  and any supplemental data requested by the board of trustees

  3  and the Auditor General, shall be confidential and exempt from

  4  the provisions of s. 119.07(1).

  5         Section 5.  Section 240.3315, Florida Statutes, is

  6  amended to read:

  7         240.3315  Statewide community college direct-support

  8  organizations.--

  9         (1)  DEFINITIONS.--For the purposes of this section:

10         (a)  "Statewide community college direct-support

11  organization" means an organization that which is:

12         1.  A Florida corporation not for profit, incorporated

13  under the provisions of chapter 617 and approved by the

14  Department of State.

15         2.  Organized and operated exclusively to receive,

16  hold, invest, and administer property and to make expenditures

17  to, or for the benefit of, the Community College System in

18  this state.

19         3.  An organization that which the State Board of

20  Community Colleges, after review, has certified to be

21  operating in a manner consistent with the goals of the

22  Community College System and in the best interest of the

23  state. Any organization that which is denied certification by

24  the State Board of Community Colleges may shall not use the

25  name of any community college.

26         (b)  "Personal services" includes full-time or

27  part-time personnel as well as payroll processing.

28         (2)  BOARD OF DIRECTORS.--The chairperson of the State

29  Board of Community Colleges may appoint a representative to

30  the board of directors and the executive committee of any

31  statewide, direct-support organization established under this


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    SB 564                                         First Engrossed



  1  section or s. 240.331. The chairperson of the State Board of

  2  Community Colleges, or the chairperson's designee, shall also

  3  serve on the board of directors and the executive committee of

  4  any direct-support organization established to benefit the

  5  State Community College System.

  6         (3)(2)  USE OF PROPERTY.--

  7         (a)  The State Board of Community Colleges may is

  8  authorized to permit the use of property, facilities, and

  9  personal services of the Division of Community Colleges by any

10  statewide community college direct-support organization,

11  subject to the provisions of this section.

12         (b)  The State Board of Community Colleges may is

13  authorized to prescribe by rule any condition with which a

14  statewide community college direct-support organization must

15  comply in order to use property, facilities, or personal

16  services of the Division of Community Colleges.

17         (c)  The State Board of Community Colleges may shall

18  not permit the use of property, facilities, or personal

19  services of the Division of Community Colleges by any

20  statewide community college direct-support organization that

21  which does not provide equal employment opportunities to all

22  persons regardless of race, color, national origin, sex, age,

23  or religion.

24         (4)  RESTRICTIONS.--

25         (a)  A statewide, direct-support organization may not

26  use public funds to acquire, construct, maintain, or operate

27  any facilities.

28         (b)  Any transaction or agreement between a statewide,

29  direct-support organization and any other direct-support

30  organization or between a statewide, direct-support

31  organization and a center of technology innovation designated


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    SB 564                                         First Engrossed



  1  under s. 240.3335 must be approved by the State Board of

  2  Community Colleges.

  3         (5)  ANNUAL BUDGETS AND REPORTS.--Each direct-support

  4  organization shall submit to the State Board of Community

  5  Colleges its federal Internal Revenue Service Application for

  6  Recognition of Exemption form (Form 1023) and its federal

  7  Internal Revenue Service Return of Organization Exempt From

  8  Income Tax form (Form 990).

  9         (6)(3)  ANNUAL AUDIT.--A statewide community college

10  direct-support organization shall make provisions for an

11  annual postaudit of its financial accounts to be conducted by

12  an independent certified public accountant in accordance with

13  rules to be adopted by the State Board of Community Colleges.

14  The annual audit report shall be submitted to the Auditor

15  General and the State Board of Community Colleges for review.

16  The State Board of Community Colleges and the Auditor General

17  shall have the authority to require and receive from the

18  organization or from its independent auditor any detail or

19  supplemental data relative to the operation of the

20  organization. The identity of a donor or prospective donor who

21  desires to remain anonymous and all information identifying

22  such donor or prospective donor are confidential and exempt

23  from the provisions of s. 119.07(1) and s. 24(a), Art. I of

24  the State Constitution. Such anonymity shall be maintained in

25  the auditor's report.

26         Section 6.  Subsection (7) of section 240.3335, Florida

27  Statutes, is amended to read:

28         240.3335  Centers of technology innovation.--

29         (7)  Each center shall have a board of directors with

30  at least five members who shall be appointed by the district

31  board of trustees. The board of directors is shall be


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    SB 564                                         First Engrossed



  1  responsible for overseeing the operation of the center,

  2  approval of the annual budget, and setting policy to guide the

  3  director in the operation of the center. The board of

  4  directors shall have the authority to acquire, lease, and

  5  sublease property subject to the provisions of general law.

  6  The board of directors shall consist of at least the

  7  following:

  8         (a)  The director of the center.

  9         (b)  The vice president of academic affairs, or the

10  equivalent, of the community college.

11         (c)  The vice president of business affairs, or the

12  equivalent, of the community college.

13         (d)  Two members designated by the president of the

14  community college.

15         Section 7.  There is hereby appropriated from the

16  General Revenue Fund the sum of $1 million as a grant and aid

17  to Brevard Community College for fiscal year 1998-1999 to

18  support the acquisition of a black beam interferometer for the

19  Open Access Clean Room on the Palm Bay Campus.

20         Section 8.  This act shall take effect July 1, 1998.

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