House Bill 2035
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Florida House of Representatives - 2000 HB 2035
By Representative Constantine
1 A bill to be entitled
2 An act relating to postsecondary education;
3 amending s. 240.2605, F.S., relating to the
4 Trust Fund for Major Gifts; revising matching
5 requirements for receipt of funds from the
6 trust fund; providing separate matching
7 requirements for universities endowing
8 two-plus-two scholarships with community
9 colleges; deleting a provision authorizing
10 encumbrance of state matching funds for
11 challenge grants from carryforward accounts;
12 deleting a provision requiring university
13 presidents to list donations from private
14 donors for specific types of donations for the
15 1999-2000 fiscal year only; providing an
16 effective date.
17
18 Be It Enacted by the Legislature of the State of Florida:
19
20 Section 1. Section 240.2605, Florida Statutes, is
21 amended to read:
22 240.2605 Trust Fund for Major Gifts.--
23 (1) There is established a Trust Fund for Major Gifts.
24 The purpose of the trust fund is to enable the Board of
25 Regents Foundation, each university, and New College to
26 provide donors with an incentive in the form of matching
27 grants for donations for the establishment of permanent
28 endowments, which must be invested, with the proceeds of the
29 investment used to support libraries and instruction and
30 research programs, as defined by procedure of the Board of
31 Regents. All funds appropriated for the challenge grants, new
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Florida House of Representatives - 2000 HB 2035
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1 donors, major gifts, or eminent scholars program must be
2 deposited into the trust fund and invested pursuant to s.
3 18.125 until the Board of Regents allocates the funds to
4 universities to match private donations. Notwithstanding s.
5 216.301 and pursuant to s. 216.351, any undisbursed balance
6 remaining in the trust fund and interest income accruing to
7 the portion of the trust fund which is not matched and
8 distributed to universities must remain in the trust fund and
9 be used to increase the total funds available for challenge
10 grants. The Board of Regents may authorize any university to
11 encumber the state matching portion of a challenge grant from
12 funds available under s. 240.272.
13 (2) The Board of Regents shall specify the process for
14 submission, documentation, and approval of requests for
15 matching funds, accountability for endowments and proceeds of
16 endowments, allocations to universities, restrictions on the
17 use of the proceeds from endowments, and criteria used in
18 determining the value of donations.
19 (3)(a) The Board of Regents shall allocate the amount
20 appropriated to the trust fund to the Board of Regents
21 Foundation, each university, and New College based on the
22 amount of the donation and the restrictions applied to the
23 donation.
24 (b) Donations for a specific purpose must be matched
25 in the following manner:
26 1. The Board of Regents Foundation and each university
27 that raises at least $100,000 but no more than $999,999
28 $599,999 from a private source must receive a matching grant
29 equal to 50 percent of the private contribution.
30 2. The Board of Regents Foundation and each university
31 that raises a contribution of at least $600,000 but no more
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Florida House of Representatives - 2000 HB 2035
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1 than $1 million from a private source must receive a matching
2 grant equal to 70 percent of the private contribution.
3 2.3. The Board of Regents Foundation and each
4 university that raises a contribution equal to or in excess of
5 $1 million but no more than $2,999,999 $1.5 million from a
6 private source must receive a matching grant equal to 60 75
7 percent of the private contribution.
8 4. The Board of Regents Foundation and each university
9 that raises a contribution in excess of $1.5 million but no
10 more than $2 million from a private source must receive a
11 matching grant equal to 80 percent of the private
12 contribution.
13 3.5. The Board of Regents Foundation and each
14 university that raises a contribution equal to or in excess of
15 $3 $2 million from a private source must receive a matching
16 grant equal to 85 100 percent of the private contribution.
17 4. The amount of matching funds used to match a single
18 gift in any given year shall be limited to $3 million. The
19 total amount of matching funds available for any single gift
20 shall be limited to $15 million, to be distributed in equal
21 amounts of $3 million per year over a period of 5 years,
22 subject to the availability of funds.
23 (c) Notwithstanding subparagraphs (b)1.-3., if a
24 university seeking matching funds under this section and a
25 community college seeking matching funds under s. 240.36
26 jointly endow a two-plus-two scholarship, the university shall
27 receive matching funds on the same basis as the community
28 college under s. 240.36(3). To be eligible for matching funds
29 under this paragraph, the notification of receipt and deposit
30 of private contributions for such purpose must be submitted
31 jointly by a community college and a state university in
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Florida House of Representatives - 2000 HB 2035
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1 increments of $50,000, consisting of $30,000 to the university
2 from a single donor and $20,000 to the community college, with
3 a maximum of 50 scholarships per year being eligible for a
4 match. Five scholarships per year shall be reserved for each
5 state university until March 1, at which time any unmatched
6 funds shall be made available to universities and community
7 colleges under procedures established by the Board of Regents
8 and the State Board of Community Colleges.
9 (d)(c) The Board of Regents shall encumber state
10 matching funds for any pledged contributions, pro rata, based
11 on the requirements for state matching funds as specified for
12 the particular challenge grant and the amount of the private
13 donations actually received by the university or Board of
14 Regents Foundation for the respective challenge grant.
15 (4) Matching funds may be provided for contributions
16 encumbered or pledged under the Florida Endowment Trust Fund
17 for Eminent Scholars Act prior to July 1, 1994, and for
18 donations or pledges of any amount equal to or in excess of
19 the prescribed minimums which are pledged for the purpose of
20 this section.
21 (5)(a) The Board of Regents Foundation, each
22 university foundation, and New College Foundation shall
23 establish a challenge grant account for each challenge grant
24 as a depository for private contributions and state matching
25 funds to be administered on behalf of the Board of Regents,
26 the university, or New College. State matching funds must be
27 transferred to a university foundation or New College
28 Foundation upon notification that the university or New
29 College has received and deposited the amount specified in
30 this section in a foundation challenge grant account.
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1 (b) The foundation serving a university and New
2 College Foundation each has the responsibility for the
3 maintenance and investment of its challenge grant account and
4 for the administration of the program on behalf of the
5 university or New College, pursuant to procedures specified by
6 the Board of Regents. Each foundation shall include in its
7 annual report to the Board of Regents information concerning
8 collection and investment of matching gifts and donations and
9 investment of the account.
10 (c) A donation of at least $600,000 and associated
11 state matching funds may be used to designate an Eminent
12 Scholar Endowed Chair pursuant to procedures specified by the
13 Board of Regents.
14 (6) The donations, state matching funds, or proceeds
15 from endowments established under this section may not be
16 expended for the construction, renovation, or maintenance of
17 facilities or for the support of intercollegiate athletics.
18 (7) The Board of Regents Foundation may participate in
19 the same manner as a university foundation with regard to the
20 provisions of this section.
21 (8) Notwithstanding other provisions of this section,
22 for the 1999-2000 fiscal year only, for gifts received during
23 this period, the university presidents shall provide a list of
24 donations from private donors for challenge grants, new
25 donations, major gifts, and the eminent scholars program to be
26 matched for the 1999-2000 fiscal year to the Board of Regents.
27 The listing shall contain an explanation of the donation, a
28 statement of the specific benefits accrued to the university
29 as a result of the donation, and how the donation is
30 consistent with the mission of the institution, as defined by
31 the Board of Regents in the 1998-2003 Strategic Plan.
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Florida House of Representatives - 2000 HB 2035
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1 University presidents shall rank each private donation to
2 their university, giving highest priority to private donations
3 that provide additional library resources to universities;
4 donations that provide student assistance through
5 scholarships, fellowships, or assistantships; donations that
6 provide funding for existing academic programs at
7 universities; and donations that meet the matching requirement
8 without encumbering pledges. The Board of Regents, using the
9 same criteria, shall develop a systemwide priority list and
10 may set restrictions on the annual amount of matching funds
11 provided for single donations that exceed $5 million.
12 Section 2. This act shall take effect July 1, 2000.
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15 HOUSE SUMMARY
16
Revises provisions relating to the Trust Fund for Major
17 Gifts to revise matching requirements for receipt of
funds from the trust fund, to delete a provision
18 authorizing encumbrance of state matching funds for
challenge grants from carryforward accounts, and to
19 delete a provision requiring university presidents to
list donations from private donors for specific types of
20 donations for the 1999-2000 fiscal year only. Provides
separate matching requirements for universities endowing
21 two-plus-two scholarships with community colleges. See
bill for details.
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