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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    Florida Senate - 2005                     CS for CS for SB 528
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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.

16  

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

18  

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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    Florida Senate - 2005                     CS for CS for SB 528
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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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    Florida Senate - 2005                     CS for CS for SB 528
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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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    Florida Senate - 2005                     CS for CS for SB 528
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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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    Florida Senate - 2005                     CS for CS for SB 528
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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

31  

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    Florida Senate - 2005                     CS for CS for SB 528
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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:

31  

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    Florida Senate - 2005                     CS for CS for SB 528
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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

31  

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    Florida Senate - 2005                     CS for CS for SB 528
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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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    Florida Senate - 2005                     CS for CS for SB 528
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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.

31  

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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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    Florida Senate - 2005                     CS for CS for SB 528
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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                      CS for Senate Bill 528

 3                                 

 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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