HB 0067

1	A bill to be entitled
2	An act relating to the Trust Fund for University Major
3	Gifts; amending s. 1011.94, F.S.; authorizing the Florida
4	Board of Governors Foundation, Inc., to provide matching
5	grants; providing duties of the Board of Governors;
6	replacing references to the State Board of Education with
7	references to the Board of Governors; deleting references
8	to New College; deleting provisions that authorize
9	encumbrances; requiring donations to support priorities
10	established by a university's board of trustees; revising
11	provisions that prescribe the manner in which donations
12	must be matched; revising provisions relating to donations
13	that may be used to designate an Eminent Scholar Endowed
14	Chair; providing an effective date.
15
16	Be It Enacted by the Legislature of the State of Florida:
17
18	Section 1.  Section 1011.94, Florida Statutes, is amended
19	to read:
20	1011.94  Trust Fund for University Major Gifts.--
21	(1)  There is established a Trust Fund for University Major
22	Gifts. The purpose of the trust fund is to enable the Florida
23	Board of Governors Foundation, Inc., and each university and New
24	College to provide donors with an incentive in the form of
25	matching grants for donations for the establishment of permanent
26	endowments and sales tax exemption matching funds received
27	pursuant to s. 212.08(5)(j), which must be invested, with the
28	proceeds of the investment used to support libraries and
29	instruction and research programs, as defined by the Board of
30	Governors State Board of Education. All funds appropriated for
31	the challenge grants, new donors, major gifts, sales tax
32	exemption matching funds pursuant to s. 212.08(5)(j), or eminent
33	scholars program must be deposited into the trust fund and
34	invested pursuant to s. 17.61 until the Board of Governors State
35	Board of Education allocates the funds to universities to match
36	private donations. Notwithstanding s. 216.301 and pursuant to s.
37	216.351, any undisbursed balance remaining in the trust fund and
38	interest income accruing to the portion of the trust fund which
39	is not matched and distributed to universities must remain in
40	the trust fund and be used to increase the total funds available
41	for challenge grants. Funds deposited in the trust fund for the
42	sales tax exemption matching program authorized in s.
43	212.08(5)(j), and interest earnings thereon, shall be maintained
44	in a separate account within the Trust Fund for University Major
45	Gifts, and may be used only to match qualified sales tax
46	exemptions that a certified business designates for use by state
47	universities and community colleges to support research and
48	development projects requested by the certified business. The
49	State Board of Education may authorize any university to
50	encumber the state matching portion of a challenge grant from
51	funds available under s. 1011.45.
52	(2)  The Board of Governors State Board of Education shall
53	specify the process for submission, documentation, and approval
54	of requests for matching funds, accountability for endowments
55	and proceeds of endowments, allocations to universities,
56	restrictions on the use of the proceeds from endowments, and
57	criteria used in determining the value of donations.
58	(3)(a)  The Board of Governors State Board of Education
59	shall allocate the amount appropriated to the trust fund to the
60	Florida Board of Governors Foundation, Inc., and each university
61	and New College based on the amount of the donation and the
62	restrictions applied to the donation.
63	(b)1.  Donations from a private source, including any gift
64	pledged and approved for initial match, which are approved by
65	the Board of Governors and are on the pending list before July
66	1, 2006, must be for a specific purpose to support university
67	priorities as established by the university's board of trustees
68	and must be matched in the following manner:
69	a.1.  The Florida Board of Governors Foundation, Inc., and
70	each university that raises at least $100,000 but no more than
71	$599,999 from a private source must receive a matching grant
72	equal to 50 percent of the private contribution.
73	b.2.  The Florida Board of Governors Foundation, Inc., and
74	each university that raises a contribution of at least $600,000
75	but no more than $1 million from a private source must receive a
76	matching grant equal to 70 percent of the private contribution.
77	c.3.  The Florida Board of Governors Foundation, Inc., and
78	each university that raises a contribution in excess of $1
79	million but no more than $1.5 million from a private source must
80	receive a matching grant equal to 75 percent of the private
81	contribution.
82	d.4.  The Florida Board of Governors Foundation, Inc., and
83	each university that raises a contribution in excess of $1.5
84	million but no more than $2 million from a private source must
85	receive a matching grant equal to 80 percent of the private
86	contribution.
87	e.5.  The Florida Board of Governors Foundation, Inc., and
88	each university that raises a contribution in excess of $2
89	million from a private source must receive a matching grant
90	equal to 100 percent of the private contribution.
91	2.  For new gifts and pledges made on or after July 1,
92	2006, donations from a private source must be for a specific
93	purpose to support university priorities as established by the
94	university's board of trustees and must be matched in the
95	following manner:
96	a.  The Florida Board of Governors Foundation, Inc., and
97	each university that raises at least $100,000 but no more than
98	$499,999 from a private source must receive a matching grant
99	equal to 25 percent of the private contribution.
100	b.  The Florida Board of Governors Foundation, Inc., and
101	each university that raises a contribution of at least $500,000
102	but no more than $999,999 from a private source must receive a
103	matching grant equal to 50 percent of the private contribution.
104	c.  The Florida Board of Governors Foundation, Inc., and
105	each university that raises a contribution of at least $1
106	million but less than $3 million from a private source must
107	receive a matching grant equal to 75 percent of the private
108	contribution.
109	d.  The Florida Board of Governors Foundation, Inc., and
110	each university that raises a contribution of $3 million or more
111	from a private source must receive a matching grant equal to 100
112	percent of the private contribution.
113	e.  A bundled gift shall be limited to not more than $1
114	million and a maximum match of 50 percent.
115	f.  The maximum amount of matching funds that may be used
116	to match a single gift in any given year is $3 million. The
117	maximum total amount of matching funds that may be used to match
118	any single gift is $15 million, to be distributed in equal
119	amounts of $3 million per year over a period of 5 years, subject
120	to availability of funds.
121	(c)  The State Board of Education shall encumber state
122	matching funds for any pledged contributions, pro rata, based on
123	the requirements for state matching funds as specified for the
124	particular challenge grant and the amount of the private
125	donations actually received by the university for the respective
126	challenge grant.
127	(4)  Matching funds may be provided for contributions
128	encumbered or pledged under the Eminent Scholars Act prior to
129	July 1, 1994, and for donations or pledges of any amount equal
130	to or in excess of the prescribed minimums which are pledged for
131	the purpose of this section.
132	(5)(a)  The Florida Board of Governors Foundation, Inc.,
133	and each university foundation and New College Foundation shall
134	establish a challenge grant account for each challenge grant as
135	a depository for private contributions and state matching funds
136	to be administered on behalf of the Board of Governors or State
137	Board of Education, the university, or New College. State
138	matching funds must be transferred to a university foundation or
139	New College Foundation upon notification that the university or
140	New College has received and deposited the amount specified in
141	this section in a foundation challenge grant account.
142	(b)  The foundation serving a university and New College
143	Foundation each has the responsibility for the maintenance and
144	investment of its challenge grant account and for the
145	administration of the program on behalf of the university or New
146	College, pursuant to procedures specified by the Board of
147	Governors State Board of Education. Each foundation shall
148	include in its annual report to the Board of Governors State
149	Board of Education information concerning collection and
150	investment of matching gifts and donations and investment of the
151	account.
152	(c)1.  A private donation, including any gift pledged and
153	approved for initial match, which is approved by the Board of
154	Governors and is on the pending list before July 1, 2006, of at
155	least $600,000 and associated state matching funds may be used
156	to designate an Eminent Scholar Endowed Chair pursuant to
157	procedures specified by the Board of Governors State Board of
158	Education.
159	2.  For new gifts and pledges made on or after July 1,
160	2006, a private donation of at least $700,000 and associated
161	state matching funds may be used to designate an Eminent Scholar
162	Endowed Chair pursuant to procedures specified by the Board of
163	Governors.
164	(6)  The donations, state matching funds, or proceeds from
165	endowments established under this section may not be expended
166	for the construction, renovation, or maintenance of facilities
167	or for the support of intercollegiate athletics.
168	(7)  The Florida Board of Governors Foundation, Inc., may
169	participate in the same manner as a university foundation with
170	regard to the provisions of this section.
171	Section 2.  This act shall take effect July 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.