Senate Bill sb0528c2
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Florida Senate - 2005 CS for CS for SB 528
By the Committees on Education Appropriations; Education; and
Senators King, Smith and Dockery
602-2220-05
1 A bill to be entitled
2 An act relating to education funding; amending
3 s. 1011.32, F.S., relating to the Community
4 College Facility Enhancement Challenge Grant
5 Program; authorizing a direct-support
6 organization of a community college to accept
7 real property having a value of up to a
8 specified amount; prohibiting initiation of a
9 project until any gift of real property has
10 been legally conveyed to the community college;
11 amending s. 1013.79, F.S., relating to the
12 University Facility Enhancement Challenge Grant
13 Program; authorizing a foundation serving a
14 university to accept real property having a
15 value of up to a specified amount; prohibiting
16 initiation of a project until any gift of real
17 property has been legally conveyed to the
18 university; amending s. 1011.94, F.S.;
19 authorizing the Florida Board of Governors
20 Foundation, Inc., to provide matching grants;
21 providing duties of the Board of Governors;
22 replacing references to the State Board of
23 Education with references to the Board of
24 Governors; deleting references to New College;
25 deleting provisions that authorize
26 encumbrances; requiring donations to support
27 priorities established by a university's board
28 of trustees; revising provisions that prescribe
29 the manner in which donations must be matched;
30 revising provisions relating to donations that
31 may be used to designate an Eminent Scholar
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1 Endowed Chair; requiring private donations to
2 be expended for the direct benefit of the
3 university or universities for which donated;
4 providing a limit on the state's obligation for
5 matching grants under unamended matching
6 criteria; providing that, if an Eminent Scholar
7 Endowed Chair is vacant for more than 12
8 months, the donor may request that the gift be
9 returned to the donor or the donor may request
10 that the gift be transferred to another
11 designated university; requiring that the state
12 matching funds previously matched to the
13 donation must be transferred to the university
14 receiving the transferred gift; defining the
15 term "vacant"; providing an effective date.
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17 Be It Enacted by the Legislature of the State of Florida:
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19 Section 1. Subsections (2), (4), and (5) of section
20 1011.32, Florida Statutes, are amended to read:
21 1011.32 Community College Facility Enhancement
22 Challenge Grant Program.--
23 (2) There is established the Community College
24 Facility Enhancement Challenge Grant Program for the purpose
25 of assisting the community colleges in building high priority
26 instructional and community-related capital facilities
27 consistent with s. 1004.65, including common areas connecting
28 such facilities. The direct-support organizations that serve
29 the community colleges shall solicit gifts from private
30 sources to provide matching funds for capital facilities. For
31 the purposes of this section, private sources of funds shall
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1 not include any federal or state government funds that a
2 community college may receive. For purposes of this section, a
3 gift may include real property having a value of up to $5
4 million, as determined by an appraisal by the Division of
5 State Lands of the Department of Environmental Protection.
6 (4) Within the direct-support organization of each
7 community college there must be established a separate capital
8 facilities matching account for the purpose of providing
9 matching funds from the direct-support organization's
10 unrestricted donations or other private contributions for the
11 development of high priority instructional and
12 community-related capital facilities, including common areas
13 connecting such facilities. The Legislature shall appropriate
14 funds for distribution to a community college after matching
15 funds are certified or real property is legally conveyed and
16 certified by the direct-support organization and community
17 college. The Public Education Capital Outlay and Debt Service
18 Trust Fund shall not be used as the source of the state match
19 for private contributions.
20 (5) A project may not be initiated unless all private
21 funds for planning, construction, and equipping the facility
22 have been received and deposited in the direct-support
23 organization's matching account, or real property has been
24 legally conveyed to the community college, and the state's
25 share for the minimum amount of funds needed to begin the
26 project has been appropriated by the Legislature. The
27 Legislature may appropriate the state's matching funds in one
28 or more fiscal years for the planning, construction, and
29 equipping of an eligible facility. However, these requirements
30 shall not preclude the community college or direct-support
31 organization from expending available funds from private
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1 sources to develop a prospectus, including preliminary
2 architectural schematics or and/or models, for use in its
3 efforts to raise private funds for a facility. Additionally,
4 any private sources of funds expended for this purpose are
5 eligible for state matching funds should the project
6 materialize as provided for in this section.
7 Section 2. Subsections (2) and (4) of section 1013.79,
8 Florida Statutes, are amended to read:
9 1013.79 University Facility Enhancement Challenge
10 Grant Program.--
11 (2) There is hereby established the Alec P. Courtelis
12 University Facility Enhancement Challenge Grant Program for
13 the purpose of assisting universities build high priority
14 instructional and research-related capital facilities,
15 including common areas connecting such facilities. The
16 associated foundations that serve the universities shall
17 solicit gifts from private sources to provide matching funds
18 for capital facilities. For the purposes of this act, private
19 sources of funds shall not include any federal, state, or
20 local government funds that a university may receive. For
21 purposes of this section, a gift may include real property
22 having a value of up to $5 million, as determined by an
23 appraisal by the Division of State Lands of the Department of
24 Environmental Protection.
25 (4) No project shall be initiated unless all private
26 funds for planning, construction, and equipping the facility
27 have been received and deposited in the trust fund, or real
28 property has been legally conveyed to the university, and the
29 state's share for the minimum amount of funds needed to begin
30 the project has been appropriated by the Legislature. The
31 Legislature may appropriate the state's matching funds in one
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1 or more fiscal years for the planning, construction, and
2 equipping of an eligible facility. However, these requirements
3 shall not preclude the university from expending available
4 funds from private sources to develop a prospectus, including
5 preliminary architectural schematics or and/or models, for use
6 in its efforts to raise private funds for a facility.
7 Additionally, any private sources of funds expended for this
8 purpose are eligible for state matching funds should the
9 project materialize as provided for in this section.
10 Section 3. Section 1011.94, Florida Statutes, is
11 amended to read:
12 1011.94 Trust Fund for University Major Gifts.--
13 (1) There is established a Trust Fund for University
14 Major Gifts. The purpose of the trust fund is to enable the
15 Florida Board of Governors Foundation, Inc., and each
16 university and New College to provide donors with an incentive
17 in the form of matching grants for donations for the
18 establishment of permanent endowments and sales tax exemption
19 matching funds received pursuant to s. 212.08(5)(j), which
20 must be invested, with the proceeds of the investment used to
21 support libraries and instruction and research programs, as
22 defined by the Board of Governors State Board of Education.
23 All funds appropriated for the challenge grants, new donors,
24 major gifts, sales tax exemption matching funds pursuant to s.
25 212.08(5)(j), or eminent scholars program must be deposited
26 into the trust fund and invested pursuant to s. 17.61 until
27 the Board of Governors State Board of Education allocates the
28 funds to universities to match private donations.
29 Notwithstanding s. 216.301 and pursuant to s. 216.351, any
30 undisbursed balance remaining in the trust fund and interest
31 income accruing to the portion of the trust fund which is not
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1 matched and distributed to universities must remain in the
2 trust fund and be used to increase the total funds available
3 for challenge grants. Funds deposited in the trust fund for
4 the sales tax exemption matching program authorized in s.
5 212.08(5)(j), and interest earnings thereon, shall be
6 maintained in a separate account within the Trust Fund for
7 University Major Gifts, and may be used only to match
8 qualified sales tax exemptions that a certified business
9 designates for use by state universities and community
10 colleges to support research and development projects
11 requested by the certified business. The State Board of
12 Education may authorize any university to encumber the state
13 matching portion of a challenge grant from funds available
14 under s. 1011.45.
15 (2) The Board of Governors State Board of Education
16 shall specify the process for submission, documentation, and
17 approval of requests for matching funds, accountability for
18 endowments and proceeds of endowments, allocations to
19 universities, restrictions on the use of the proceeds from
20 endowments, and criteria used in determining the value of
21 donations.
22 (3)(a) The Board of Governors State Board of Education
23 shall allocate the amount appropriated to the trust fund to
24 the Florida Board of Governors Foundation, Inc., and each
25 university and New College based on the amount of the donation
26 and the restrictions applied to the donation.
27 (b)1. Donations from a private source, including any
28 gift pledged and approved for initial match, which are
29 approved by the Board of Governors and are on the pending list
30 before July 1, 2006, must be for a specific purpose to support
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1 university priorities as established by the university's board
2 of trustees and must be matched in the following manner:
3 a.1. The Florida Board of Governors Foundation, Inc.,
4 and each university that raises at least $100,000 but no more
5 than $599,999 from a private source must receive a matching
6 grant equal to 50 percent of the private contribution.
7 b.2. The Florida Board of Governors Foundation, Inc.,
8 and each university that raises a contribution of at least
9 $600,000 but no more than $1 million from a private source
10 must receive a matching grant equal to 70 percent of the
11 private contribution.
12 c.3. The Florida Board of Governors Foundation, Inc.,
13 and each university that raises a contribution in excess of $1
14 million but no more than $1.5 million from a private source
15 must receive a matching grant equal to 75 percent of the
16 private contribution.
17 d.4. The Florida Board of Governors Foundation, Inc.,
18 and each university that raises a contribution in excess of
19 $1.5 million but no more than $2 million from a private source
20 must receive a matching grant equal to 80 percent of the
21 private contribution.
22 e.5. The Florida Board of Governors Foundation, Inc.,
23 and each university that raises a contribution in excess of $2
24 million from a private source must receive a matching grant
25 equal to 100 percent of the private contribution.
26 2. For new gifts and pledges made on or after July 1,
27 2006, donations from a private source must be for a specific
28 purpose to support university priorities as established by the
29 university's board of trustees and must be matched in the
30 following manner:
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1 a. The Florida Board of Governors Foundation, Inc.,
2 and each university that raises at least $100,000 but no more
3 than $499,999 from a private source must receive a matching
4 grant equal to 25 percent of the private contribution.
5 b. The Florida Board of Governors Foundation, Inc.,
6 and each university that raises a contribution of at least
7 $500,000 but no more than $999,999 from a private source must
8 receive a matching grant equal to 50 percent of the private
9 contribution.
10 c. The Florida Board of Governors Foundation, Inc.,
11 and each university that raises a contribution of at least $1
12 million but less than $3 million from a private source must
13 receive a matching grant equal to 75 percent of the private
14 contribution.
15 d. The Florida Board of Governors Foundation, Inc.,
16 and each university that raises a contribution of $3 million
17 or more from a private source must receive a matching grant
18 equal to 100 percent of the private contribution.
19 e. A bundled gift shall be limited to not more than $1
20 million and a maximum match of 50 percent.
21 f. The maximum amount of matching funds that may be
22 used to match a single gift in any given year is $3 million.
23 The maximum total amount of matching funds that may be used to
24 match any single gift is $15 million, to be distributed in
25 equal amounts of $3 million per year over a period of 5 years,
26 subject to availability of funds.
27 (c) The State Board of Education shall encumber state
28 matching funds for any pledged contributions, pro rata, based
29 on the requirements for state matching funds as specified for
30 the particular challenge grant and the amount of the private
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1 donations actually received by the university for the
2 respective challenge grant.
3 (4) Matching funds may be provided for contributions
4 encumbered or pledged under the Eminent Scholars Act prior to
5 July 1, 1994, and for donations or pledges of any amount equal
6 to or in excess of the prescribed minimums which are pledged
7 for the purpose of this section.
8 (5)(a) The Florida Board of Governors Foundation,
9 Inc., and each university foundation and New College
10 Foundation shall establish a challenge grant account for each
11 challenge grant as a depository for private contributions and
12 state matching funds to be administered on behalf of the Board
13 of Governors or State Board of Education, the university, or
14 New College. State matching funds must be transferred to a
15 university foundation or New College Foundation upon
16 notification that the university or New College has received
17 and deposited the amount specified in this section in a
18 foundation challenge grant account.
19 (b) The foundation serving a university and New
20 College Foundation each has the responsibility for the
21 maintenance and investment of its challenge grant account and
22 for the administration of the program on behalf of the
23 university or New College, pursuant to procedures specified by
24 the Board of Governors State Board of Education. Each
25 foundation shall include in its annual report to the Board of
26 Governors State Board of Education information concerning
27 collection and investment of matching gifts and donations and
28 investment of the account.
29 (c)1. A private donation, including any gift pledged
30 and approved for initial match, which is approved by the Board
31 of Governors and is on the pending list before July 1, 2006,
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1 of at least $600,000 and associated state matching funds may
2 be used to designate an Eminent Scholar Endowed Chair pursuant
3 to procedures specified by the Board of Governors State Board
4 of Education.
5 2. For new gifts and pledges made on or after July 1,
6 2006, a private donation of at least $700,000 and associated
7 state matching funds may be used to designate an Eminent
8 Scholar Endowed Chair pursuant to procedures specified by the
9 Board of Governors.
10 (6) The donations, state matching funds, or proceeds
11 from endowments established under this section may not be
12 expended for the construction, renovation, or maintenance of
13 facilities or for the support of intercollegiate athletics.
14 (7) The Florida Board of Governors Foundation, Inc.,
15 may participate in the same manner as a university foundation
16 with regard to the provisions of this section. However, any
17 private donation to the Board of Governors Foundation, Inc.,
18 for which state matching funds are sought under this section
19 shall be expended for the direct benefit of the university or
20 universities as specified in the private donor's gift or
21 pledge agreement.
22 (8) Notwithstanding the foregoing provisions, for
23 gifts and pledges made before July 1, 2006, the state's total
24 obligation for matching grants under the current matching
25 criteria may not exceed $125 million. Gifts and pledges
26 received by the Board of Governors Foundation, Inc., and each
27 university before July 1, 2006, which are in excess of $125
28 million are not eligible for state match until July 1, 2006,
29 under the revised match criteria set forth in
30 sub-subparagraphs (3)(b)2.a.-f. and subparagraph (5)(c)2.
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1 (9)(a) Notwithstanding any provision of this section,
2 if an Eminent Scholar Endowed Chair is vacant for more than 12
3 months, the donor may request that the gift be returned to the
4 donor and the gift shall be returned to the donor immediately
5 or the donor may request that the gift be transferred to
6 another designated university that expresses a willingness to
7 immediately employ a person to occupy the chair and the gift
8 shall be transferred to that designated university.
9 (b) If the donor transfers the gift to another
10 university eligible to participate in the program, the state
11 matching funds previously matched to the donation must be
12 transferred to the university receiving the transferred gift.
13 (c) If the university from which the gift and matching
14 funds are transferred has entered into a contract with a
15 person to serve as the eminent scholar but the person has not
16 begun to serve as the employed eminent scholar, then the
17 contract, and the funds associated with it, must be delivered
18 to the designated university to which the gift and matching
19 funds are transferred. In all other circumstances, the state
20 matching funds received on a returned or transferred gift
21 shall revert to General Revenue.
22 (d) For the purposes of this subsection, the term
23 "vacant" means that no person has been employed and is serving
24 full time as the eminent scholar or that the university has
25 not designated an eminent scholar chair for a specific purpose
26 consistent with the intent of the donor.
27 Section 4. This act shall take effect July 1, 2005.
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 CS for Senate Bill 528
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4 The Committee Substitute for CS/SB 528 allows donations of
real property having a value of up to $5 million to qualify
5 for state matching funds under the Community College Facility
Enhancement Challenge Grant Program or the University Facility
6 Enhancement Grant Program. The Committee Substitute also
provides for the return or transfer of donations for Eminent
7 Scholar Endowed Chairs under certain circumstances.
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