Senate Bill sb0528

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    Florida Senate - 2005                                   SB 528

    By Senators King and Smith





    8-608-05                                             See HB 67

  1                      A bill to be entitled

  2         An act relating to the Trust Fund for

  3         University Major Gifts; amending s. 1011.94,

  4         F.S.; authorizing the Florida Board of

  5         Governors Foundation, Inc., to provide matching

  6         grants; providing duties of the Board of

  7         Governors; replacing references to the State

  8         Board of Education with references to the Board

  9         of Governors; deleting references to New

10         College; deleting provisions that authorize

11         encumbrances; requiring donations to support

12         priorities established by a university's board

13         of trustees; revising provisions that prescribe

14         the manner in which donations must be matched;

15         revising provisions relating to donations that

16         may be used to designate an Eminent Scholar

17         Endowed Chair; providing an effective date.

18  

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

20  

21         Section 1.  Section 1011.94, Florida Statutes, is

22  amended to read:

23         1011.94  Trust Fund for University Major Gifts.--

24         (1)  There is established a Trust Fund for University

25  Major Gifts. The purpose of the trust fund is to enable the

26  Florida Board of Governors Foundation, Inc., and each

27  university and New College to provide donors with an incentive

28  in the form of matching grants for donations for the

29  establishment of permanent endowments and sales tax exemption

30  matching funds received pursuant to s. 212.08(5)(j), which

31  must be invested, with the proceeds of the investment used to

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    Florida Senate - 2005                                   SB 528
    8-608-05                                             See HB 67




 1  support libraries and instruction and research programs, as

 2  defined by the Board of Governors State Board of Education.

 3  All funds appropriated for the challenge grants, new donors,

 4  major gifts, sales tax exemption matching funds pursuant to s.

 5  212.08(5)(j), or eminent scholars program must be deposited

 6  into the trust fund and invested pursuant to s. 17.61 until

 7  the Board of Governors State Board of Education allocates the

 8  funds to universities to match private donations.

 9  Notwithstanding s. 216.301 and pursuant to s. 216.351, any

10  undisbursed balance remaining in the trust fund and interest

11  income accruing to the portion of the trust fund which is not

12  matched and distributed to universities must remain in the

13  trust fund and be used to increase the total funds available

14  for challenge grants. Funds deposited in the trust fund for

15  the sales tax exemption matching program authorized in s.

16  212.08(5)(j), and interest earnings thereon, shall be

17  maintained in a separate account within the Trust Fund for

18  University Major Gifts, and may be used only to match

19  qualified sales tax exemptions that a certified business

20  designates for use by state universities and community

21  colleges to support research and development projects

22  requested by the certified business. The State Board of

23  Education may authorize any university to encumber the state

24  matching portion of a challenge grant from funds available

25  under s. 1011.45.

26         (2)  The Board of Governors State Board of Education

27  shall specify the process for submission, documentation, and

28  approval of requests for matching funds, accountability for

29  endowments and proceeds of endowments, allocations to

30  universities, restrictions on the use of the proceeds from

31  

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    Florida Senate - 2005                                   SB 528
    8-608-05                                             See HB 67




 1  endowments, and criteria used in determining the value of

 2  donations.

 3         (3)(a)  The Board of Governors State Board of Education

 4  shall allocate the amount appropriated to the trust fund to

 5  the Florida Board of Governors Foundation, Inc., and each

 6  university and New College based on the amount of the donation

 7  and the restrictions applied to the donation.

 8         (b)1.  Donations from a private source, including any

 9  gift pledged and approved for initial match, which are

10  approved by the Board of Governors and are on the pending list

11  before July 1, 2006, must be for a specific purpose to support

12  university priorities as established by the university's board

13  of trustees and must be matched in the following manner:

14         a.1.  The Florida Board of Governors Foundation, Inc.,

15  and each university that raises at least $100,000 but no more

16  than  $599,999 from a private source must receive a matching

17  grant equal to 50 percent of the private contribution.

18         b.2.  The Florida Board of Governors Foundation, Inc.,

19  and each university that raises a contribution of at least

20  $600,000 but no more than $1 million from a private source

21  must receive a matching grant equal to 70 percent of the

22  private contribution.

23         c.3.  The Florida Board of Governors Foundation, Inc.,

24  and each university that raises a contribution in excess of $1

25  million but no more than $1.5 million from a private source

26  must receive a matching grant equal to 75 percent of the

27  private contribution.

28         d.4.  The Florida Board of Governors Foundation, Inc.,

29  and each university that raises a contribution in excess of

30  $1.5 million but no more than $2 million from a private source

31  

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    Florida Senate - 2005                                   SB 528
    8-608-05                                             See HB 67




 1  must receive a matching grant equal to 80 percent of the

 2  private contribution.

 3         e.5.  The Florida Board of Governors Foundation, Inc.,

 4  and each university that raises a contribution in excess of $2

 5  million from a private source must receive a matching grant

 6  equal to 100 percent of the private contribution.

 7         2.  For new gifts and pledges made on or after July 1,

 8  2006, donations from a private source must be for a specific

 9  purpose to support university priorities as established by the

10  university's board of trustees and must be matched in the

11  following manner:

12         a.  The Florida Board of Governors Foundation, Inc.,

13  and each university that raises at least $100,000 but no more

14  than $499,999 from a private source must receive a matching

15  grant equal to 25 percent of the private contribution.

16         b.  The Florida Board of Governors Foundation, Inc.,

17  and each university that raises a contribution of at least

18  $500,000 but no more than $999,999 from a private source must

19  receive a matching grant equal to 50 percent of the private

20  contribution.

21         c.  The Florida Board of Governors Foundation, Inc.,

22  and each university that raises a contribution of at least $1

23  million but less than $3 million from a private source must

24  receive a matching grant equal to 75 percent of the private

25  contribution.

26         d.  The Florida Board of Governors Foundation, Inc.,

27  and each university that raises a contribution of $3 million

28  or more from a private source must receive a matching grant

29  equal to 100 percent of the private contribution.

30         e.  A bundled gift shall be limited to not more than $1

31  million and a maximum match of 50 percent.

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    Florida Senate - 2005                                   SB 528
    8-608-05                                             See HB 67




 1         f.  The maximum amount of matching funds that may be

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

 3  The maximum total amount of matching funds that may be used to

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

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

 6  subject to availability of funds.

 7         (c)  The State Board of Education shall encumber state

 8  matching funds for any pledged contributions, pro rata, based

 9  on the requirements for state matching funds as specified for

10  the particular challenge grant and the amount of the private

11  donations actually received by the university for the

12  respective challenge grant.

13         (4)  Matching funds may be provided for contributions

14  encumbered or pledged under the Eminent Scholars Act prior to

15  July 1, 1994, and for donations or pledges of any amount equal

16  to or in excess of the prescribed minimums which are pledged

17  for the purpose of this section.

18         (5)(a)  The Florida Board of Governors Foundation,

19  Inc., and each university foundation and New College

20  Foundation shall establish a challenge grant account for each

21  challenge grant as a depository for private contributions and

22  state matching funds to be administered on behalf of the Board

23  of Governors or State Board of Education, the university, or

24  New College. State matching funds must be transferred to a

25  university foundation or New College Foundation upon

26  notification that the university or New College has received

27  and deposited the amount specified in this section in a

28  foundation challenge grant account.

29         (b)  The foundation serving a university and New

30  College Foundation each has the responsibility for the

31  maintenance and investment of its challenge grant account and

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    Florida Senate - 2005                                   SB 528
    8-608-05                                             See HB 67




 1  for the administration of the program on behalf of the

 2  university or New College, pursuant to procedures specified by

 3  the Board of Governors State Board of Education. Each

 4  foundation shall include in its annual report to the Board of

 5  Governors State Board of Education information concerning

 6  collection and investment of matching gifts and donations and

 7  investment of the account.

 8         (c)1.  A private donation, including any gift pledged

 9  and approved for initial match, which is approved by the Board

10  of Governors and is on the pending list before July 1, 2006,

11  of at least $600,000 and associated state matching funds may

12  be used to designate an Eminent Scholar Endowed Chair pursuant

13  to procedures specified by the Board of Governors State Board

14  of Education.

15         2.  For new gifts and pledges made on or after July 1,

16  2006, a private donation of at least $700,000 and associated

17  state matching funds may be used to designate an Eminent

18  Scholar Endowed Chair pursuant to procedures specified by the

19  Board of Governors.

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

21  from endowments established under this section may not be

22  expended for the construction, renovation, or maintenance of

23  facilities or for the support of intercollegiate athletics.

24         (7)  The Florida Board of Governors Foundation, Inc.,

25  may participate in the same manner as a university foundation

26  with regard to the provisions of this section.

27         Section 2.  This act shall take effect July 1, 2005.

28  

29  

30  

31  

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