Senate Bill 2092c1

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    Florida Senate - 2000                           CS for SB 2092

    By the Committee on Education and Senator Sullivan





    304-2014-00

  1                      A bill to be entitled

  2         An act relating to the Trust Fund for Major

  3         Gifts; amending s. 240.2605, F.S.; rescinding a

  4         provision that allows the Board of Regents to

  5         authorize a university to encumber the state

  6         matching portion of a challenge grant from

  7         funds available under s. 240.272, F.S.;

  8         revising provisions that prescribe the manner

  9         in which donations from the trust fund must be

10         matched; providing the maximum yearly amount

11         and the maximum total amount of matching funds

12         which may be used to match a single gift;

13         repealing an obsolete provision; amending s.

14         240.2601, F.S.; requiring a report to the Board

15         of Regents and a priority list; providing an

16         effective date.

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

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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 Senate - 2000                           CS for SB 2092
    304-2014-00




  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 Senate - 2000                           CS for SB 2092
    304-2014-00




  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 in excess of $1 million

  5  but no more than $2,999,999 $1.5 million from a private source

  6  must receive a matching grant equal to 60 75 percent of the

  7  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 in excess of $3 $2

15  million from a private source must receive a matching grant

16  equal to 85 100 percent of the private contribution.

17         4.  The maximum amount of matching funds which may be

18  used to match a single gift in any given year is $3 million.

19  The maximum total amount of matching funds which may be used

20  to match any single gift is $15 million, to be distributed in

21  equal amounts of $3 million per year over a period of 5 years,

22  subject to the availability of funds.

23         (c)  The Board of Regents shall encumber state matching

24  funds for any pledged contributions, pro rata, based on the

25  requirements for state matching funds as specified for the

26  particular challenge grant and the amount of the private

27  donations actually received by the university or Board of

28  Regents Foundation for the respective challenge grant.

29         (4)  Matching funds may be provided for contributions

30  encumbered or pledged under the Florida Endowment Trust Fund

31  for Eminent Scholars Act prior to July 1, 1994, and for

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    Florida Senate - 2000                           CS for SB 2092
    304-2014-00




  1  donations or pledges of any amount equal to or in excess of

  2  the prescribed minimums which are pledged for the purpose of

  3  this section.

  4         (5)(a)  The Board of Regents Foundation, each

  5  university foundation, and New College Foundation shall

  6  establish a challenge grant account for each challenge grant

  7  as a depository for private contributions and state matching

  8  funds to be administered on behalf of the Board of Regents,

  9  the university, or New College. State matching funds must be

10  transferred to a university foundation or New College

11  Foundation upon notification that the university or New

12  College has received and deposited the amount specified in

13  this section in a foundation challenge grant account.

14         (b)  The foundation serving a university and New

15  College Foundation each has the responsibility for the

16  maintenance and investment of its challenge grant account and

17  for the administration of the program on behalf of the

18  university or New College, pursuant to procedures specified by

19  the Board of Regents. Each foundation shall include in its

20  annual report to the Board of Regents information concerning

21  collection and investment of matching gifts and donations and

22  investment of the account.

23         (c)  A donation of at least $600,000 and associated

24  state matching funds may be used to designate an Eminent

25  Scholar Endowed Chair pursuant to procedures specified by the

26  Board of Regents.

27         (6)  The donations, state matching funds, or proceeds

28  from endowments established under this section may not be

29  expended for the construction, renovation, or maintenance of

30  facilities or for the support of intercollegiate athletics.

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    Florida Senate - 2000                           CS for SB 2092
    304-2014-00




  1         (7)  The Board of Regents Foundation may participate in

  2  the same manner as a university foundation with regard to the

  3  provisions of this section.

  4         (8)  For challenge grants for which state matching

  5  funds are requested Notwithstanding other provisions of this

  6  section, for the 1999-2000 fiscal year only, for gifts

  7  received during this period, the university presidents shall

  8  annually provide a list to the Board of Regents of donations

  9  from private donors for challenge grants, new donations, major

10  gifts, and the eminent scholars program to be matched for the

11  1999-2000 fiscal year to the Board of Regents. The listing

12  shall include, but need not be limited to, contain an

13  explanation of the donation, a statement of the specific

14  benefits accrued to the university as a result of the

15  donation, and how the donation is consistent with the mission

16  of the institution, as defined by the Board of Regents in its

17  most recent the 1998-2003 Strategic Plan. University

18  presidents shall rank each private donation to their

19  university, giving highest priority to private donations that

20  provide additional library resources to universities;

21  donations that provide student assistance through

22  scholarships, fellowships, or assistantships; donations that

23  provide funding for existing academic programs at

24  universities. The Board of Regents shall submit a report to

25  the President of the Senate, the Speaker of the House of

26  Representatives, and the Governor by January 15 of each year.

27  The report must include, but not be limited to, the annual

28  listing described in this subsection as well as information

29  regarding the expenditure of the proceeds of the endowments

30  for the previous year.; and donations that meet the matching

31  requirement without encumbering pledges. The Board of Regents,

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    Florida Senate - 2000                           CS for SB 2092
    304-2014-00




  1  using the same criteria, shall develop a systemwide priority

  2  list and may set restrictions on the annual amount of matching

  3  funds provided for single donations that exceed $5 million.

  4         Section 2.  Present subsections (7) through (11) of

  5  section 240.2601, Florida Statutes, are redesignated as

  6  subsections (8) through (11), respectively, and a new

  7  subsection (7) is added to that section to read:

  8         240.2601  State University System Facility Enhancement

  9  Challenge Grant Program.--

10         (7)  For challenge grants for which state matching is

11  being requested, university presidents shall provide to the

12  Board of Regents a list of donations received from private

13  donors for the State University System Facility Enhancement

14  Challenge Grant Program. This listing shall contain an

15  explanation of the donation, a statement of the specific

16  benefits accrued to the university as a result of the

17  donation, and the projected cost to the state for the

18  operation and maintenance of the facility. The Board of

19  Regents shall review and rank each private donation, giving

20  highest priority to private donations that provide the

21  financial resources for major renovations to existing

22  facilities, particularly instructional facilities, and new

23  space requirements as identified by the space utilization

24  model. The listing shall be submitted by August 1 of each

25  year.

26         Section 3.  This act shall take effect July 1, 2000.

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    Florida Senate - 2000                           CS for SB 2092
    304-2014-00




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                             SB 2092

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  4  The Committee Substitute makes permanent a 1-year requirement
    that university presidents and the Board of Regents must
  5  report the donations and explain their consistency with the
    master plan. It requires the same type of report for the
  6  Facility Enhancement Challenge Grant Program. The reports must
    rank the donations in priority order, but state funding is not
  7  required to be allocated first to the first donations in
    priority. Universities may continue to match donations on a
  8  first-come, first-matched basis.

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