Senate Bill sb0528c1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2005 CS for SB 528
By the Committee on Education; and Senators King and Smith
581-1684-05
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; requiring private donations to
18 be expended for the direct benefit of the
19 university or universities for which donated;
20 providing a limit on the state's obligation for
21 matching grants under unamended matching
22 criteria; providing an effective date.
23
24 Be It Enacted by the Legislature of the State of Florida:
25
26 Section 1. Section 1011.94, Florida Statutes, is
27 amended to read:
28 1011.94 Trust Fund for University Major Gifts.--
29 (1) There is established a Trust Fund for University
30 Major Gifts. The purpose of the trust fund is to enable the
31 Florida Board of Governors Foundation, Inc., and each
1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2005 CS for SB 528
581-1684-05
1 university and New College to provide donors with an incentive
2 in the form of matching grants for donations for the
3 establishment of permanent endowments and sales tax exemption
4 matching funds received pursuant to s. 212.08(5)(j), which
5 must be invested, with the proceeds of the investment used to
6 support libraries and instruction and research programs, as
7 defined by the Board of Governors State Board of Education.
8 All funds appropriated for the challenge grants, new donors,
9 major gifts, sales tax exemption matching funds pursuant to s.
10 212.08(5)(j), or eminent scholars program must be deposited
11 into the trust fund and invested pursuant to s. 17.61 until
12 the Board of Governors State Board of Education allocates the
13 funds to universities to match private donations.
14 Notwithstanding s. 216.301 and pursuant to s. 216.351, any
15 undisbursed balance remaining in the trust fund and interest
16 income accruing to the portion of the trust fund which is not
17 matched and distributed to universities must remain in the
18 trust fund and be used to increase the total funds available
19 for challenge grants. Funds deposited in the trust fund for
20 the sales tax exemption matching program authorized in s.
21 212.08(5)(j), and interest earnings thereon, shall be
22 maintained in a separate account within the Trust Fund for
23 University Major Gifts, and may be used only to match
24 qualified sales tax exemptions that a certified business
25 designates for use by state universities and community
26 colleges to support research and development projects
27 requested by the certified business. The State Board of
28 Education may authorize any university to encumber the state
29 matching portion of a challenge grant from funds available
30 under s. 1011.45.
31
2
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2005 CS for SB 528
581-1684-05
1 (2) The Board of Governors State Board of Education
2 shall specify the process for submission, documentation, and
3 approval of requests for matching funds, accountability for
4 endowments and proceeds of endowments, allocations to
5 universities, restrictions on the use of the proceeds from
6 endowments, and criteria used in determining the value of
7 donations.
8 (3)(a) The Board of Governors State Board of Education
9 shall allocate the amount appropriated to the trust fund to
10 the Florida Board of Governors Foundation, Inc., and each
11 university and New College based on the amount of the donation
12 and the restrictions applied to the donation.
13 (b)1. Donations from a private source, including any
14 gift pledged and approved for initial match, which are
15 approved by the Board of Governors and are on the pending list
16 before July 1, 2006, must be for a specific purpose to support
17 university priorities as established by the university's board
18 of trustees and must be matched in the following manner:
19 a.1. The Florida Board of Governors Foundation, Inc.,
20 and each university that raises at least $100,000 but no more
21 than $599,999 from a private source must receive a matching
22 grant equal to 50 percent of the private contribution.
23 b.2. The Florida Board of Governors Foundation, Inc.,
24 and each university that raises a contribution of at least
25 $600,000 but no more than $1 million from a private source
26 must receive a matching grant equal to 70 percent of the
27 private contribution.
28 c.3. The Florida Board of Governors Foundation, Inc.,
29 and each university that raises a contribution in excess of $1
30 million but no more than $1.5 million from a private source
31
3
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2005 CS for SB 528
581-1684-05
1 must receive a matching grant equal to 75 percent of the
2 private contribution.
3 d.4. The Florida Board of Governors Foundation, Inc.,
4 and each university that raises a contribution in excess of
5 $1.5 million but no more than $2 million from a private source
6 must receive a matching grant equal to 80 percent of the
7 private contribution.
8 e.5. The Florida Board of Governors Foundation, Inc.,
9 and each university that raises a contribution in excess of $2
10 million from a private source must receive a matching grant
11 equal to 100 percent of the private contribution.
12 2. For new gifts and pledges made on or after July 1,
13 2006, donations from a private source must be for a specific
14 purpose to support university priorities as established by the
15 university's board of trustees and must be matched in the
16 following manner:
17 a. The Florida Board of Governors Foundation, Inc.,
18 and each university that raises at least $100,000 but no more
19 than $499,999 from a private source must receive a matching
20 grant equal to 25 percent of the private contribution.
21 b. The Florida Board of Governors Foundation, Inc.,
22 and each university that raises a contribution of at least
23 $500,000 but no more than $999,999 from a private source must
24 receive a matching grant equal to 50 percent of the private
25 contribution.
26 c. The Florida Board of Governors Foundation, Inc.,
27 and each university that raises a contribution of at least $1
28 million but less than $3 million from a private source must
29 receive a matching grant equal to 75 percent of the private
30 contribution.
31
4
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2005 CS for SB 528
581-1684-05
1 d. The Florida Board of Governors Foundation, Inc.,
2 and each university that raises a contribution of $3 million
3 or more from a private source must receive a matching grant
4 equal to 100 percent of the private contribution.
5 e. A bundled gift shall be limited to not more than $1
6 million and a maximum match of 50 percent.
7 f. The maximum amount of matching funds that may be
8 used to match a single gift in any given year is $3 million.
9 The maximum total amount of matching funds that may be used to
10 match any single gift is $15 million, to be distributed in
11 equal amounts of $3 million per year over a period of 5 years,
12 subject to availability of funds.
13 (c) The State Board of Education shall encumber state
14 matching funds for any pledged contributions, pro rata, based
15 on the requirements for state matching funds as specified for
16 the particular challenge grant and the amount of the private
17 donations actually received by the university for the
18 respective challenge grant.
19 (4) Matching funds may be provided for contributions
20 encumbered or pledged under the Eminent Scholars Act prior to
21 July 1, 1994, and for donations or pledges of any amount equal
22 to or in excess of the prescribed minimums which are pledged
23 for the purpose of this section.
24 (5)(a) The Florida Board of Governors Foundation,
25 Inc., and each university foundation and New College
26 Foundation shall establish a challenge grant account for each
27 challenge grant as a depository for private contributions and
28 state matching funds to be administered on behalf of the Board
29 of Governors or State Board of Education, the university, or
30 New College. State matching funds must be transferred to a
31 university foundation or New College Foundation upon
5
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2005 CS for SB 528
581-1684-05
1 notification that the university or New College has received
2 and deposited the amount specified in this section in a
3 foundation challenge grant account.
4 (b) The foundation serving a university and New
5 College Foundation each has the responsibility for the
6 maintenance and investment of its challenge grant account and
7 for the administration of the program on behalf of the
8 university or New College, pursuant to procedures specified by
9 the Board of Governors State Board of Education. Each
10 foundation shall include in its annual report to the Board of
11 Governors State Board of Education information concerning
12 collection and investment of matching gifts and donations and
13 investment of the account.
14 (c)1. A private donation, including any gift pledged
15 and approved for initial match, which is approved by the Board
16 of Governors and is on the pending list before July 1, 2006,
17 of at least $600,000 and associated state matching funds may
18 be used to designate an Eminent Scholar Endowed Chair pursuant
19 to procedures specified by the Board of Governors State Board
20 of Education.
21 2. For new gifts and pledges made on or after July 1,
22 2006, a private donation of at least $700,000 and associated
23 state matching funds may be used to designate an Eminent
24 Scholar Endowed Chair pursuant to procedures specified by the
25 Board of Governors.
26 (6) The donations, state matching funds, or proceeds
27 from endowments established under this section may not be
28 expended for the construction, renovation, or maintenance of
29 facilities or for the support of intercollegiate athletics.
30 (7) The Florida Board of Governors Foundation, Inc.,
31 may participate in the same manner as a university foundation
6
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2005 CS for SB 528
581-1684-05
1 with regard to the provisions of this section. However, any
2 private donation to the Board of Governors Foundation, Inc.,
3 for which state matching funds are sought under this section
4 shall be expended for the direct benefit of the university or
5 universities as specified in the private donor's gift or
6 pledge agreement.
7 (8) Notwithstanding the foregoing provisions, for
8 gifts and pledges made before July 1, 2006, the state's total
9 obligation for matching grants under the current matching
10 criteria may not exceed $125 million. Gifts and pledges
11 received by the Board of Governors Foundation, Inc., and each
12 university before July 1, 2006, which are in excess of $125
13 million are not eligible for state match until July 1, 2006,
14 under the revised match criteria set forth in
15 sub-subparagraphs (3)(b)2.a.-f. and subparagraph (5)(c)2.
16 Section 2. This act shall take effect July 1, 2005.
17
18 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
19 Senate Bill 528
20
21 This committee substitute:
22 Requires any private donation to the Florida Board of
Governors Foundation under this program must be expended
23 for the direct benefit of a university or universities as
provided in the donor's gift or pledge agreement;
24
Caps the state's total matching obligation under the program
25 at $125 million for all gifts made before July 1, 2006;
and
26
Requires each gift received under the program in excess of a
27 $125 million cap before July 1, 2006 to be matched under
revised matching criteria and to be matched subsequent to
28 July 1, 2006.
29
30
31
7
CODING: Words stricken are deletions; words underlined are additions.