Amendment
Bill No. 5005

Amendment No. 882185

CHAMBER ACTION
Senate		House
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1	The Conference Committee on HB 5005 offered the following:
2
3	Conference Committee Amendment (with title amendment)
4	Remove everything after the enacting clause and insert:
5	Section 1.  Paragraph (c) of subsection (2) of section
6	551.106, Florida Statutes, is amended to read:
7	551.106  License fee; tax rate; penalties.--
8	(2)  TAX ON SLOT MACHINE REVENUES.--
9	(c)1.  Funds transferred to the Educational Enhancement
10	Trust Fund under paragraph (b) shall be used to supplement
11	public education funding statewide and shall not be used for
12	recurring appropriations.
13	2.  If necessary to comply with any covenant established
14	pursuant to s. 1013.68(4), s. 1013.70(1), or s. 1013.737(3),
15	funds transferred to the Educational Enhancement Trust Fund
16	under paragraph (b) shall first be available to pay debt service
17	on lottery bonds issued to fund school construction in the event
18	lottery revenues are insufficient for such purpose or to satisfy
19	debt service reserve requirements established in connection with
20	lottery bonds. Moneys available pursuant to this subparagraph
21	are subject to annual appropriation by the Legislature.
22	Section 2.  Paragraph (a) of subsection (2) of section
23	1001.451, Florida Statutes, is amended to read:
24	1001.451  Regional consortium service organizations.--In
25	order to provide a full range of programs to larger numbers of
26	students, minimize duplication of services, and encourage the
27	development of new programs and services:
28	(2)(a)  Each regional consortium service organization that
29	consists of four or more school districts is eligible to
30	receive, through the Department of Education, an incentive grant
31	of $50,000 per school district and eligible member to be used
32	for the delivery of services within the participating school
33	districts. The determination of services and use of such funds
34	shall be established by the board of directors of the regional
35	consortium service organization. The funds shall be distributed
36	to each regional consortium service organization no later than
37	30 days following the release of the funds to the department.
38	Section 3.  Paragraph (d) is added to subsection (3) of
39	section 1002.71, Florida Statutes, to read:
40	1002.71  Funding; financial and attendance reporting.--
41	(3)
42	(d)  For programs offered by school districts pursuant to
43	s. 1002.61, each district's funding shall be based on a full-
44	time equivalent student enrollment that is evenly divisible by
45	10. If the result of dividing a district's full-time equivalent
46	student enrollment by 10 is not a whole number, the district's
47	enrollment calculation shall be adjusted by adding the minimum
48	number of full-time equivalent students to produce a full-time
49	equivalent student enrollment calculation that is evenly
50	divisible by 10.
51	Section 4.  Subsection (2) of section 1009.535, Florida
52	Statutes, is amended to read:
53	1009.535  Florida Medallion Scholars award.--
54	(2)  A Florida Medallion Scholar is eligible for an award
55	equal to the amount required to pay 75 percent of tuition and
56	fees, if the student is enrolled in a state university or a
57	baccalaureate degree program authorized pursuant to s. 1007.33.
58	A Florida Medallion Scholar is eligible for an award equal to
59	the amount required to pay 100 percent of tuition and fees for
60	college credit courses leading to an associate degree if the
61	student is enrolled in a community college public postsecondary
62	education institution. A student who is enrolled in a nonpublic
63	postsecondary education institution is eligible for an award
64	equal to the amount that would be required to pay 75 percent of
65	the tuition and fees of a public postsecondary education
66	institution at the comparable level.
67	Section 5.  Section 1010.62, Florida Statutes, is created
68	to read:
69	1010.62  Revenue bonds and debt.--
70	(1)  As used in this section, the term:
71	(a)  "Capital outlay project" means:
72	1.  Any project to acquire, construct, improve, or change
73	the functional use of land, buildings, and other facilities,
74	including furniture and equipment necessary to operate a new or
75	improved building or facility.
76	2.  Any other acquisition of equipment or software.
77	(b)  "Debt" means bonds, except revenue bonds as defined in
78	paragraph (d), loans, promissory notes, lease-purchase
79	agreements, certificates of participation, installment sales,
80	leases, or any other financing mechanism or financial
81	arrangement, whether or not a debt for legal purposes, for
82	financing or refinancing for or on behalf of a state university
83	or a direct-support organization or for the acquisition,
84	construction, improvement, or purchase of capital outlay
85	projects.
86	(c)  "Direct-support organization" means an organization
87	created pursuant to s. 1004.28 or any entity specifically
88	established to incur debt.
89	(d)  "Revenue bonds" means any obligation that constitutes
90	a revenue bond pursuant to s. 11(d), Art. VII of the State
91	Constitution.
92	(2)(a)  The Board of Governors may request the issuance of
93	revenue bonds pursuant to the State Bond Act and s. 11(d), Art.
94	VII of the State Constitution to finance or refinance capital
95	outlay projects permitted by law. Revenue bonds may be secured
96	by or payable only from those revenues authorized for such
97	purpose, including the Capital Improvement Trust Fund fee, the
98	building fee, the health fee, the transportation access fee,
99	hospital revenues, or those revenues derived from or received in
100	relation to sales and services of auxiliary enterprises or
101	component units of the university, including, but not limited
102	to, housing, transportation, health care, research or research-
103	related activities, food service, retail sales, athletic
104	activities, or other similar services, other revenues
105	attributable to the projects to be financed or refinanced, any
106	other revenue approved by the Legislature for facilities
107	construction or for securing revenue bonds issued pursuant to s.
108	11(d), Art. VII of the State Constitution, or any other revenues
109	permitted by law. Revenues from the activity and service fee and
110	the athletic fee may be used to pay and secure revenue bonds
111	except that the annual debt service shall not exceed an amount
112	equal to 5 percent of the fees collected during the most recent
113	12 consecutive months for which collection information is
114	available prior to the sale of the bonds. The assets of a
115	university foundation and the earnings thereon may also be used
116	to pay and secure revenue bonds of the university or its direct-
117	support organizations. Revenues from royalties and licensing
118	fees may also be used to pay and secure revenue bonds so long as
119	the facilities being financed are functionally related to the
120	university operation or direct-support organization reporting
121	such royalties and licensing fees. Revenue bonds may not be
122	secured by or be payable from, directly or indirectly, tuition,
123	the financial aid fee, sales and services of educational
124	departments, revenues from grants and contracts, except for
125	money received for overhead and indirect costs and other moneys
126	not required for the payment of direct costs, or any other
127	operating revenues of a state university. Revenues from one
128	auxiliary enterprise may not be used to secure revenue bonds of
129	another unless the Board of Governors, after review and
130	analysis, determines that the facilities being financed are
131	functionally related to the auxiliary enterprise revenues being
132	used to secure such revenue bonds.
133	(b)  In connection with the issuance of revenue bonds, the
134	Board of Governors, and the state university if so designated by
135	the Board of Governors, shall comply with all covenants,
136	commitments, or other provisions relating to the revenue bonds.
137	Such covenants, commitments, or other provisions, in addition to
138	those provided in the State Bond Act, may relate to:
139	1.  Pledging the fees, charges, and other revenues that
140	secure the revenue bonds;
141	2.  Fixing and maintaining fees, rates, and other charges
142	pledged to the payment of the revenue bonds;
143	3.  Providing a lien on the revenues pledged;
144	4.  Preventing or providing for the creation of other liens
145	on the fees, charges, and other revenues that secure the revenue
146	bonds;
147	5.  Establishing and maintaining reserves for debt service
148	payments on revenue bonds;
149	6.  Providing for the operation, maintenance, and
150	improvement of facilities that are related to the generation of
151	the fees, revenues, and other charges pledged to the payment of
152	the revenue bonds; and
153	7.  Establishing any other covenants, commitments, or
154	provisions that are deemed necessary or advisable to enhance the
155	security of the revenue bonds, or the marketability thereof, and
156	that are customary in accordance with the market requirements
157	for the sale of such revenue bonds.
158	(c)  Revenue bonds issued pursuant to this subsection are
159	not required to be validated pursuant to chapter 75.
160	(3)(a)  A state university or direct-support organization
161	may not issue debt without the approval of the Board of
162	Governors. The Board of Governors may approve the issuance of
163	debt by a state university or a direct-support organization only
164	when such debt is used to finance or refinance capital outlay
165	projects. The debt may be secured by or payable only from those
166	revenues authorized for such purpose, including the health fee,
167	the transportation access fee, hospital revenues, or those
168	revenues derived from or received in relation to sales and
169	services of auxiliary enterprises or component units of the
170	university, including, but not limited to, housing,
171	transportation, health care, research or research-related
172	activities, food service, retail sales, athletic activities, or
173	other similar services. Revenues derived from the activity and
174	service fee and the athletic fee may be used to pay and secure
175	debt except that the annual debt service shall not exceed an
176	amount equal to 5 percent of the fees collected during the most
177	recent 12 consecutive months for which collection information is
178	available prior to incurring the debt. The assets of university
179	foundations and the earnings thereon may be used to pay and
180	secure debt of the university or its direct-support
181	organizations. Gifts and donations or pledges of gifts may also
182	be used to secure debt so long as the maturity of the debt,
183	including extensions, renewals, and refundings, does not exceed
184	5 years. Revenues from royalties and licensing fees may also be
185	used to secure debt so long as the facilities being financed are
186	functionally related to the university operation or direct-
187	support organization reporting such royalties and licensing
188	fees. The debt may not be secured by or be payable from,
189	directly or indirectly, tuition, the financial aid fee, sales
190	and services of educational departments, revenues from grants
191	and contracts, except for money received for overhead and
192	indirect costs and other moneys not required for the payment of
193	direct costs of grants, or any other operating revenues of a
194	state university. The debt of direct-support organizations may
195	not be secured by or be payable under an agreement or contract
196	with a state university unless the source of payments under such
197	agreement or contract is limited to revenues that universities
198	are authorized to use for payment of debt service. Revenues from
199	one auxiliary enterprise may not be used to secure debt of
200	another unless the Board of Governors, after review and
201	analysis, determines that the facilities being financed are
202	functionally related to the auxiliary enterprise revenues being
203	used to secure such debt. Debt may not be approved to finance or
204	refinance operating expenses of a state university or a direct-
205	support organization. The maturity of debt used to finance or
206	refinance the acquisition of equipment or software, including
207	any extensions, renewals, or refundings thereof, shall be
208	limited to 5 years or the estimated useful life of the equipment
209	or software, whichever is shorter. The Board of Governors may
210	establish conditions and limitations on such debt as it
211	determines to be advisable.
212	(b)  Approval by the Board of Governors of the issuance of
213	debt shall be based upon a determination that the debt:
214	1.  Is for a purpose consistent with the mission of the
215	state university;
216	2.  Is structured in a manner appropriate for the prudent
217	financial management of the state university;
218	3.  Is secured by revenues adequate to provide for all
219	payments relating to the debt;
220	4.  Has been analyzed by the Division of Bond Finance and
221	issues raised by such analysis have been appropriately
222	considered by the Board of Governors; and
223	5.  Is consistent with the requirements of any policies or
224	criteria adopted by the Board of Governors for the approval of
225	debt.
226	(c)  Notwithstanding paragraphs (a) and (b), state
227	universities and direct-support organizations may engage in the
228	following activities without the approval of the Board of
229	Governors:
230	1.  State universities may lease-purchase equipment and
231	software in accordance with the deferred-purchase provisions in
232	chapter 287 and direct-support organizations may lease-purchase
233	equipment and software to the extent that the overall term of
234	the financing, including any extension, renewal, or refinancing
235	thereof, does not exceed 5 years or the estimated useful life of
236	the equipment or software, whichever is shorter;
237	2.  Direct-support organizations may issue promissory notes
238	and grant conventional mortgages for the acquisition of real
239	property; and
240	3.  State universities and direct-support organizations may
241	secure debt with gifts and donations and pledges of gifts so
242	long as the facilities being financed thereby have been included
243	in the university's 5-year capital improvement plan that has
244	been approved by the Board of Governors and the maturity of the
245	debt, including any extension, renewal, or refunding, does not
246	exceed 5 years.
247	(4)  The approval by the Board of Governors of revenue
248	bonds, except refunding bonds, or debt must be requested by a
249	resolution of the board of trustees of each state university
250	involved in the issuance of the revenue bonds or debt.
251	(5)  Revenue bonds or debt issued under this section may be
252	secured on a parity with prior revenue bonds or debt issued by
253	or on behalf of one or more universities or a direct-support
254	organization.
255	(6)  Capital outlay projects to be financed by revenue
256	bonds or debt are limited to those approved by the Legislature
257	through approval of the specific project or general approval of
258	the type or category of capital outlay project.
259	(7)(a)  As required pursuant to s. 11(d), Art. VII of the
260	State Constitution and subsection (6), the Legislature approves
261	capital outlay projects meeting the following requirements:
262	1.  The project is located on a campus of a state
263	university or on land leased to the university or is used for
264	activities relating to the state university;
265	2.  The project is included in the master plan of the state
266	university or is for facilities that are not required to be in a
267	university's master plan;
268	3.  The project is approved by the Board of Governors as
269	being consistent with the strategic plan of the state university
270	and the programs offered by the state university; and
271	4.  The project is for purposes relating to the housing,
272	transportation, health care, research or research-related
273	activities, food service, retail sales, or student activities of
274	the state university.
275	(b)  Capital outlay projects for the acquisition of
276	equipment or software are also approved for purposes of
277	subsection (6) to the extent that the overall term of the
278	financing, including any extension, renewal, or refinancing
279	thereof, does not exceed 5 years or the estimated useful life of
280	the equipment or software, whichever is shorter.
281	(8)  Notwithstanding any other law, the Board of Governors,
282	each state university, and any direct-support organization must
283	comply with the provisions of this section in order to issue or
284	enter into agreements for the issuance of revenue bonds or debt.
285	(9)  The Board of Governors may adopt such policies as may
286	be necessary or desirable for carrying out all of the
287	requirements of this section and may do all things necessary or
288	desirable to carry out the powers granted under this section.
289	Such policies may include categories of debt, other than revenue
290	bonds, which may be issued without approval of the specific
291	issuance by the Board of Governors if the issuance complies with
292	any terms, conditions, or requirements included in such policy
293	and laws governing the imposition of fees and laws requiring
294	specific authority to pledge revenues to secure debt.
295	(10)  Any legal commitments, contracts, or other
296	obligations relating to the financing of capital outlay projects
297	that were lawfully entered into before the effective date of
298	this section shall remain in full force and effect. Any such
299	legal commitment, contract, or other obligation may be amended
300	without compliance with this section, but only to the extent
301	that such amendment does not increase the financial obligation
302	of the Board of Governors, a state university, or a direct-
303	support organization.
304	Section 6.  Paragraphs (d) and (f) of subsection (1) and
305	paragraphs (a) and (b) of subsection (4) of section 1011.62,
306	Florida Statutes, are amended, paragraphs (o), (p), (q), and (r)
307	of subsection (1) are redesignated as paragraphs (q), (r), (s),
308	and (t), respectively, and new paragraphs (o) and (p) are added
309	to that subsection, subsections (5), (6), and (7) are renumbered
310	as subsections (6), (7), and (8), respectively, present
311	subsections (8) and (9) are renumbered as subsections (9) and
312	(10), respectively, and amended, and a new subsection (5) is
313	added to that section, to read:
314	1011.62  Funds for operation of schools.--If the annual
315	allocation from the Florida Education Finance Program to each
316	district for operation of schools is not determined in the
317	annual appropriations act or the substantive bill implementing
318	the annual appropriations act, it shall be determined as
319	follows:
320	(1)  COMPUTATION OF THE BASIC AMOUNT TO BE INCLUDED FOR
321	OPERATION.--The following procedure shall be followed in
322	determining the annual allocation to each district for
323	operation:
324	(d)  Annual allocation calculation.--
325	1.  The Department of Education is authorized and directed
326	to review all district programs and enrollment projections and
327	calculate a maximum total weighted full-time equivalent student
328	enrollment for each district for the K-12 FEFP.
329	2.  Maximum enrollments calculated by the department shall
330	be derived from enrollment estimates used by the Legislature to
331	calculate the FEFP. If two or more districts enter into an
332	agreement under the provisions of s. 1001.42(4)(d), after the
333	final enrollment estimate is agreed upon, the amount of FTE
334	specified in the agreement, not to exceed the estimate for the
335	specific program as identified in paragraph (c), may be
336	transferred from the participating districts to the district
337	providing the program.
338	3.  As part of its calculation of each district's maximum
339	total weighted full-time equivalent student enrollment, the
340	department shall establish separate enrollment ceilings for each
341	of two program groups. Group 1 shall be composed of basic
342	programs for grades K-3, grades 4-8, and grades 9-12. Group 2
343	shall be composed of students in exceptional student education
344	programs support levels IV and V, English for Speakers of Other
345	Languages programs, and all career programs in grades 9-12 7-12.
346	a.  For any calculation of the FEFP, the enrollment ceiling
347	for group 1 shall be calculated by multiplying the actual
348	enrollment for each program in the program group by its
349	appropriate program weight.
350	b.a.  The weighted enrollment ceiling for group 2 programs
351	shall be calculated by multiplying the final enrollment
352	conference estimate for each program by the appropriate program
353	weight as provided in the General Appropriations Act. The
354	weighted enrollment ceiling for program group 2 shall be the sum
355	of the weighted enrollment ceilings for each program in the
356	program group, plus the increase in weighted full-time
357	equivalent student membership from the prior year for clients of
358	the Department of Children and Family Services and the
359	Department of Juvenile Justice.
360	c.b.  If, for any calculation of the FEFP, the weighted
361	enrollment for program group 2, derived by multiplying actual
362	enrollments by appropriate program weights, exceeds the
363	enrollment ceiling for that group, the following procedure shall
364	be followed to reduce the weighted enrollment for that group to
365	equal the enrollment ceiling:
366	(I)  The weighted enrollment ceiling for each program in
367	the program group shall be subtracted from the weighted
368	enrollment for that program derived from actual enrollments.
369	(II)  If the difference calculated under sub-sub-
370	subparagraph (I) is greater than zero for any program, a
371	reduction proportion shall be computed for the program by
372	dividing the absolute value of the difference by the total
373	amount by which the weighted enrollment for the program group
374	exceeds the weighted enrollment ceiling for the program group.
375	(III)  The reduction proportion calculated under sub-sub-
376	subparagraph (II) shall be multiplied by the total amount of the
377	program group's enrollment over the ceiling as calculated under
378	sub-sub-subparagraph (I).
379	(IV)  The prorated reduction amount calculated under sub-
380	sub-subparagraph (III) shall be subtracted from the program's
381	weighted enrollment to produce a revised program weighted
382	enrollment. For any calculation of the FEFP, the enrollment
383	ceiling for group 1 shall be calculated by multiplying the
384	actual enrollment for each program in the program group by its
385	appropriate program weight.
386	(V)  The prorated reduction amount calculated under sub-
387	sub-subparagraph (III) shall be divided by the appropriate
388	program weight and the result shall be added to the revised
389	program weighted enrollment computed in sub-sub-subparagraph
390	(IV).
391	c.  For program group 2, the weighted enrollment ceiling
392	shall be a number not less than the sum obtained by:
393	(I)  Multiplying the sum of reported FTE for all programs
394	in the program group that have a cost factor of 1.0 or more by
395	1.0, and
396	(II)  By adding this number to the sum obtained by
397	multiplying the projected FTE for all programs with a cost
398	factor less than 1.0 by the actual cost factor.
399	4.  Following completion of the weighted enrollment ceiling
400	calculation as provided in subparagraph 3., a supplemental
401	capping calculation shall be employed for those districts that
402	are over their weighted enrollment ceiling. For each such
403	district, the total reported unweighted FTE enrollment for group
404	2 programs shall be compared with the total appropriated
405	unweighted FTE enrollment for group 2 programs. If the total
406	reported unweighted FTE for group 2 is greater than the
407	appropriated unweighted FTE, then the excess unweighted FTE up
408	to the unweighted FTE transferred from group 2 to group 1 for
409	each district by the Public School FTE Estimating Conference
410	shall be funded at a weight of 1.0 and added to the funded
411	weighted FTE computed in subparagraph 3.
412	(f)  Supplemental academic instruction; categorical fund.--
413	1.  There is created a categorical fund to provide
414	supplemental academic instruction to students in kindergarten
415	through grade 12. This paragraph may be cited as the
416	"Supplemental Academic Instruction Categorical Fund."
417	2.  Categorical funds for supplemental academic instruction
418	shall be allocated annually to each school district in the
419	amount provided in the General Appropriations Act. These funds
420	shall be in addition to the funds appropriated on the basis of
421	FTE student membership in the Florida Education Finance Program
422	and shall be included in the total potential funds of each
423	district. These funds shall be used to provide supplemental
424	academic instruction to students enrolled in the K-12 program.
425	Supplemental instruction strategies may include, but are not
426	limited to: modified curriculum, reading instruction, after-
427	school instruction, tutoring, mentoring, class size reduction,
428	extended school year, intensive skills development in summer
429	school, and other methods for improving student achievement.
430	Supplemental instruction may be provided to a student in any
431	manner and at any time during or beyond the regular 180-day term
432	identified by the school as being the most effective and
433	efficient way to best help that student progress from grade to
434	grade and to graduate.
435	3.  Effective with the 1999-2000 fiscal year, funding on
436	the basis of FTE membership beyond the 180-day regular term
437	shall be provided in the FEFP only for students enrolled in
438	juvenile justice education programs or in education programs for
439	juveniles placed in secure facilities or programs under s.
440	985.223. Funding for instruction beyond the regular 180-day
441	school year for all other K-12 students shall be provided
442	through the supplemental academic instruction categorical fund
443	and other state, federal, and local fund sources with ample
444	flexibility for schools to provide supplemental instruction to
445	assist students in progressing from grade to grade and
446	graduating.
447	4.  The Florida State University School, as a lab school,
448	is authorized to expend from its FEFP or Lottery Enhancement
449	Trust Fund allocation the cost to the student of remediation in
450	reading, writing, or mathematics for any graduate who requires
451	remediation at a postsecondary educational institution.
452	5.  Beginning in the 1999-2000 school year, dropout
453	prevention programs as defined in ss. 1003.52, 1003.53(1)(a),
454	(b), and (c), and 1003.54 shall be included in group 1 programs
455	under subparagraph (d)3.
456	(o)  Calculation of additional full-time equivalent
457	membership based on completion of high school level algebra
458	courses by students in grades 6 through 8.--A value of 0.088
459	full-time equivalent student membership shall be calculated for
460	each student in grades 6 through 8 who completes a high school
461	level algebra course and receives a grade of C or better. Such
462	value shall be added to the total full-time equivalent student
463	membership in basic programs for grades 6 through 8. Each
464	district must allocate the funds provided to the district for
465	students in grades 6 through 8 who complete a high school level
466	algebra course and receive a grade of C or better to the school
467	that generated the funds.
468	(p)  Calculation of additional full-time equivalent
469	membership for the Florida Virtual School.--The total reported
470	full-time equivalent student membership for the Florida Virtual
471	School shall be multiplied by 0.114 and such value shall be
472	added to the total full-time equivalent student membership.
473	(4)  COMPUTATION OF DISTRICT REQUIRED LOCAL EFFORT.--The
474	Legislature shall prescribe the aggregate required local effort
475	for all school districts collectively as an item in the General
476	Appropriations Act for each fiscal year. The amount that each
477	district shall provide annually toward the cost of the Florida
478	Education Finance Program for kindergarten through grade 12
479	programs shall be calculated as follows:
480	(a)  Estimated taxable value calculations.--
481	1.a.  Not later than 2 working days prior to July 19, the
482	Department of Revenue shall certify to the Commissioner of
483	Education its most recent estimate of the taxable value for
484	school purposes in each school district and the total for all
485	school districts in the state for the current calendar year
486	based on the latest available data obtained from the local
487	property appraisers. Not later than July 19, the Commissioner of
488	Education shall compute a millage rate, rounded to the next
489	highest one one-thousandth of a mill, which, when applied to 95
490	percent of the estimated state total taxable value for school
491	purposes, would generate the prescribed aggregate required local
492	effort for that year for all districts. The Commissioner of
493	Education shall certify to each district school board the
494	millage rate, computed as prescribed in this subparagraph, as
495	the minimum millage rate necessary to provide the district
496	required local effort for that year.
497	b.  The General Appropriations Act shall direct the
498	computation of the statewide adjusted aggregate amount for
499	required local effort for all school districts collectively from
500	ad valorem taxes to ensure that no school district's revenue
501	from required local effort millage will produce more than 90
502	percent of the district's total Florida Education Finance
503	Program calculation, and the adjustment of the required local
504	effort millage rate of each district that produces more than 90
505	percent of its total Florida Education Finance Program
506	entitlement to a level that will produce only 90 percent of its
507	total Florida Education Finance Program entitlement in the July
508	calculation.
509	2.  As revised data are received from property appraisers,
510	the Department of Revenue shall amend the certification of the
511	estimate of the taxable value for school purposes. The
512	Commissioner of Education, in administering the provisions of
513	subparagraph (9)(a)2., shall use the most recent taxable value
514	for the appropriate year.
515	(b)  Final calculation.--
516	1.  On September 1 of each year, the Department of Revenue
517	shall, upon receipt of the official final assessed value of
518	property from each of the property appraisers, certify to the
519	Commissioner of Education the total of the prior year final
520	taxable value total for school purposes in each school district
521	and the total for all school districts in the state, subject to
522	the provisions of paragraph (d). The commissioner shall use the
523	official final taxable value certified on September 1 for school
524	purposes for each school district in the final calculation of
525	the annual Florida Education Finance Program allocations.
526	2.  For the purposes of this paragraph, the official final
527	taxable value for school purposes shall be the taxable value for
528	school purposes on which the tax bills are computed and mailed
529	to the taxpayers, adjusted to reflect final administrative
530	actions of value adjustment boards and judicial decisions
531	pursuant to part I of chapter 194. By September 1 of each year,
532	the Department of Revenue shall certify to the commissioner the
533	official prior year final taxable value for school purposes. For
534	each county that has not submitted a revised tax roll reflecting
535	final value adjustment board actions and final judicial
536	decisions, the Department of Revenue shall certify the most
537	recent revision of the official taxable value for school
538	purposes. The certified value certified on September 1 shall be
539	the final taxable value for school purposes for that year, and
540	no further adjustments shall be made, except those made pursuant
541	to paragraph (10)(b) subparagraph (9)(a)2.
542	(5)  DISCRETIONARY MILLAGE COMPRESSION SUPPLEMENT.--The
543	Legislature shall prescribe in the General Appropriations Act,
544	pursuant to s. 1011.71(1), the rate of nonvoted current
545	operating discretionary millage that shall be used to calculate
546	a discretionary millage compression supplement. If the
547	prescribed millage generates an amount of funds per unweighted
548	FTE for the district that is less than the state average, the
549	district shall receive an amount per FTE that, when added to the
550	funds per FTE generated by the designated levy, shall equal the
551	state average. To be eligible for the supplement, a district
552	must levy the maximum authorized millage pursuant to s. 1011.71.
553	(9)(8)  QUALITY ASSURANCE GUARANTEE.--The Legislature may
554	annually in the General Appropriations Act determine a
555	percentage increase in funds per K-12 unweighted FTE as a
556	minimum guarantee to each school district. The guarantee shall
557	be calculated from prior year base funding per unweighted FTE
558	student which shall include the adjusted FTE dollars as provided
559	in subsection (10) (9), quality guarantee funds, and actual
560	nonvoted discretionary local effort from taxes. From the base
561	funding per unweighted FTE, the increase shall be calculated for
562	the current year. The current year funds from which the
563	guarantee shall be determined shall include the adjusted FTE
564	dollars as provided in subsection (10) (9) and potential
565	nonvoted discretionary local effort from taxes. A comparison of
566	current year funds per unweighted FTE to prior year funds per
567	unweighted FTE shall be computed. For those school districts
568	which have less than the legislatively assigned percentage
569	increase, funds shall be provided to guarantee the assigned
570	percentage increase in funds per unweighted FTE student. Should
571	appropriated funds be less than the sum of this calculated
572	amount for all districts, the commissioner shall prorate each
573	district's allocation. This provision shall be implemented to
574	the extent specifically funded.
575	(10)(9)  TOTAL ALLOCATION OF STATE FUNDS TO EACH DISTRICT
576	FOR CURRENT OPERATION.--The total annual state allocation to
577	each district for current operation for the FEFP shall be
578	distributed periodically in the manner prescribed in the General
579	Appropriations Act.
580	(a)  The basic amount for current operation for the FEFP as
581	determined in subsection (1), multiplied by the district cost
582	differential factor as determined in subsection (2), plus the
583	amounts provided for categorical components within the FEFP,
584	plus the discretionary millage compression supplement as
585	determined in subsection (5), the amount for the sparsity
586	supplement as determined in subsection (7) (6), the decline in
587	full-time equivalent students as determined in subsection (8)
588	(7), and the quality assurance guarantee as determined in
589	subsection (9) (8), less the required local effort as determined
590	in subsection (4). If the funds appropriated for the purpose of
591	funding the total amount for current operation as provided in
592	this paragraph are not sufficient to pay the state requirement
593	in full, the department shall prorate the available state funds
594	to each district in the following manner:
595	1.  Determine the percentage of proration by dividing the
596	sum of the total amount for current operation, as provided in
597	this paragraph for all districts collectively, and the total
598	district required local effort into the sum of the state funds
599	available for current operation and the total district required
600	local effort.
601	2.  Multiply the percentage so determined by the sum of the
602	total amount for current operation as provided in this paragraph
603	and the required local effort for each individual district.
604	3.  From the product of such multiplication, subtract the
605	required local effort of each district; and the remainder shall
606	be the amount of state funds allocated to the district for
607	current operation.
608	(b)  The amount thus obtained shall be the net annual
609	allocation to each school district. However, if it is determined
610	that any school district received an underallocation or
611	overallocation for any prior year because of an arithmetical
612	error, assessment roll change required by final judicial
613	decision, full-time equivalent student membership error, or any
614	allocation error revealed in an audit report, the allocation to
615	that district shall be appropriately adjusted. Beginning with
616	audits for the 2001-2002 fiscal year, if the adjustment is the
617	result of an audit finding in which group 2 FTE are reclassified
618	to the basic program and the district weighted FTE are over the
619	weighted enrollment ceiling for group 2 programs, the adjustment
620	shall not result in a gain of state funds to the district. If
621	the Department of Education audit adjustment recommendation is
622	based upon controverted findings of fact, the Commissioner of
623	Education is authorized to establish the amount of the
624	adjustment based on the best interests of the state.
625	(c)  The amount thus obtained shall represent the net
626	annual state allocation to each district; however,
627	notwithstanding any of the provisions herein, each district
628	shall be guaranteed a minimum level of funding in the amount and
629	manner prescribed in the General Appropriations Act.
630	Section 7.  Subsection (1) of section 1011.71, Florida
631	Statutes, is amended to read:
632	1011.71  District school tax.--
633	(1)  If the district school tax is not provided in the
634	General Appropriations Act or the substantive bill implementing
635	the General Appropriations Act, each district school board
636	desiring to participate in the state allocation of funds for
637	current operation as prescribed by s. 1011.62(10)(9) shall levy
638	on the taxable value for school purposes of the district,
639	exclusive of millage voted under the provisions of s. 9(b) or s.
640	12, Art. VII of the State Constitution, a millage rate not to
641	exceed the amount certified by the commissioner as the minimum
642	millage rate necessary to provide the district required local
643	effort for the current year, pursuant to s. 1011.62(4)(a)1. In
644	addition to the required local effort millage levy, each
645	district school board may levy a nonvoted current operating
646	discretionary millage. The Legislature shall prescribe annually
647	in the appropriations act the maximum amount of millage a
648	district may levy. The millage rate prescribed shall exceed zero
649	mills but shall not exceed the lesser of 1.6 mills or 25 percent
650	of the millage which is required pursuant to s. 1011.62(4),
651	exclusive of millage levied pursuant to subsection (2).
652	Section 8.  Subsections (1) and (7) of section 1013.62,
653	Florida Statutes, are amended to read:
654	1013.62  Charter schools capital outlay funding.--
655	(1)  In each year in which funds are appropriated for
656	charter school capital outlay purposes, the Commissioner of
657	Education shall allocate the funds among eligible charter
658	schools. To be eligible for a funding allocation, a charter
659	school must:
660	(a)1.  Have been in operation for 3 or more years;
661	2.  Be an expanded feeder chain of a charter school within
662	the same school district that is currently receiving charter
663	school capital outlay funds; or
664	3.  Have been accredited by the Commission on Schools of
665	the Southern Association of Colleges and Schools.
666	(b)  Have financial stability for future operation as a
667	charter school.
668	(c)  Have satisfactory student achievement based on state
669	accountability standards applicable to the charter school.
670	(d)  Have received final approval from its sponsor pursuant
671	to s. 1002.33 for operation during that fiscal year.
672	(e)  Serve students in facilities that are not provided by
673	the charter school's sponsor.
674
675	The first priority for charter school capital outlay funding
676	shall be to allocate to the charter schools that received
677	funding in the 2005-2006 fiscal year an allocation of the same
678	amount per capital outlay full-time equivalent student up to the
679	lesser of the actual number of capital outlay full-time
680	equivalent students in the current year or the capital outlay
681	full-time equivalent students in the 2005-2006 fiscal year.
682	After calculating the first priority, the second priority shall
683	be to allocate excess funds remaining in the appropriation in an
684	amount equal to the per capital outlay full-time equivalent
685	student amount in the first priority calculation to eligible
686	charter schools not included in the first priority calculation
687	and to schools in the first priority calculation with growth in
688	excess of the 2005-2006 capital outlay full-time equivalent
689	students. After calculating the first and second priorities,
690	excess funds remaining in the appropriation shall be allocated
691	to all eligible charter schools. A charter school's allocation
692	shall not exceed one-fifteenth of the cost per student station
693	specified in s. 1013.64(6)(b). Prior to the release of capital
694	outlay funds to a school district on behalf of the charter
695	school, the Department of Education shall ensure that the
696	district school board and the charter school governing board
697	enter into a written agreement that includes provisions for the
698	reversion of any unencumbered funds and all equipment and
699	property purchased with public education funds to the ownership
700	of the district school board, as provided for in subsection (3),
701	in the event that the school terminates operations. Any funds
702	recovered by the state shall be deposited in the General Revenue
703	Fund. A charter school is not eligible for a funding allocation
704	if it was created by the conversion of a public school and
705	operates in facilities provided by the charter school's sponsor
706	for a nominal fee or at no charge or if it is directly or
707	indirectly operated by the school district. Unless otherwise
708	provided in the General Appropriations Act, the funding
709	allocation for each eligible charter school shall be determined
710	by multiplying the school's projected student enrollment by one-
711	fifteenth of the cost-per-student station specified in s.
712	1013.64(6)(b) for an elementary, middle, or high school, as
713	appropriate. If the funds appropriated are not sufficient, the
714	commissioner shall prorate the available funds among eligible
715	charter schools. However, no charter school or charter lab
716	school shall receive state charter school capital outlay funds
717	in excess of the one-fifteenth cost per student station formula
718	if the charter school's combination of state charter school
719	capital outlay funds, capital outlay funds calculated through
720	the reduction in the administrative fee provided in s.
721	1002.33(20), and capital outlay funds allowed in s.
722	1002.32(9)(e) and (h) exceeds the one-fifteenth cost per student
723	station formula. Funds shall be distributed on the basis of the
724	capital outlay full-time equivalent membership by grade level,
725	which shall be calculated by averaging the results of the second
726	and third enrollment surveys. The Department of Education shall
727	distribute capital outlay funds monthly, beginning in the first
728	quarter of the fiscal year, based on one-twelfth of the amount
729	the department reasonably expects the charter school to receive
730	during that fiscal year. The commissioner shall adjust
731	subsequent distributions as necessary to reflect each charter
732	school's actual student enrollment as reflected in the second
733	and third enrollment surveys. The commissioner shall establish
734	the intervals and procedures for determining the projected and
735	actual student enrollment of eligible charter schools.
736	(7)  Notwithstanding the provisions of this section,
737	beginning in the 2003-2004 fiscal year:
738	(a)  If the appropriation for charter school capital outlay
739	funds is no greater than the 2002-2003 appropriation, the funds
740	shall be allocated according to the formula outlined in
741	subsection (1) to:
742	1.  The same schools that received funding in 2002-2003.
743	2.  Schools that are an expanded feeder pattern of schools
744	that received funding in 2002-2003.
745	3.  Schools that have an approved charter and are serving
746	students at the start of the 2003-2004 school year and either
747	incurred long-term financial obligations prior to January 31,
748	2003, or began construction on educational facilities prior to
749	December 31, 2002.
750	(b)  If the appropriation for charter school capital outlay
751	funds is less than the 2002-2003 appropriation, the funds shall
752	be prorated among the schools eligible in paragraph (a).
753	(c)  If the appropriation for charter school capital outlay
754	funds is greater than the 2002-2003 appropriation, the amount of
755	funds provided in the 2002-2003 appropriation shall be allocated
756	according to paragraph (a). First priority for allocating the
757	amount in excess of the 2002-2003 appropriation shall be to
758	prorate the excess funds among the charter schools with long-
759	term debt or long-term lease to the extent that the initial
760	allocation is insufficient to provide one-fifteenth of the cost
761	per student station specified in s. 1013.64(6)(b), and second
762	priority shall be to other eligible charter schools.
763	Section 9.  Paragraph (b) of subsection (6) of section
764	1013.64, Florida Statutes, is amended to read:
765	1013.64  Funds for comprehensive educational plant needs;
766	construction cost maximums for school district capital
767	projects.--Allocations from the Public Education Capital Outlay
768	and Debt Service Trust Fund to the various boards for capital
769	outlay projects shall be determined as follows:
770	(6)
771	(b)1.  A district school board, including a district school
772	board of an academic performance-based charter school district,
773	must not use funds from the following sources: Public Education
774	Capital Outlay and Debt Service Trust Fund; School District and
775	Community College District Capital Outlay and Debt Service Trust
776	Fund; Classrooms First Program funds provided in s. 1013.68;
777	effort index grant funds provided in s. 1013.73; nonvoted 2-mill
778	levy of ad valorem property taxes provided in s. 1011.71(2);
779	Classrooms for Kids Infrastructure Program funds provided in s.
780	1013.735; or District Effort Recognition Program funds provided
781	in s. 1013.736; or High Growth District Capital Outlay
782	Assistance Grant Program funds provided in s. 1013.738 for any
783	new construction of educational plant space with a total cost
784	per student station, including change orders, that equals more
785	than:
786	a.  $17,952 $12,755 for an elementary school,
787	b.  $19,386 $14,624 for a middle school, or
788	c.  $25,181 $19,352 for a high school,
789
790	(January 2006 2002) as adjusted annually to reflect increases or
791	decreases in the Consumer Price Index.
792	2.  A district school board must not use funds from the
793	Public Education Capital Outlay and Debt Service Trust Fund or
794	the School District and Community College District Capital
795	Outlay and Debt Service Trust Fund for any new construction of
796	an ancillary plant that exceeds 70 percent of the average cost
797	per square foot of new construction for all schools.
798	Section 10.  Paragraph (a) of subsection (1) of section
799	110.1228, Florida Statutes, is amended to read:
800	110.1228  Participation by small counties, small
801	municipalities, and district school boards located in small
802	counties.--
803	(1)  As used in this section, the term:
804	(a)  "District school board" means a district school board
805	located in a small county or a district school board that
806	receives funding pursuant to s. 1011.62(7)(6).
807	Section 11.  Subsection (7) of section 402.22, Florida
808	Statutes, is amended to read:
809	402.22  Education program for students who reside in
810	residential care facilities operated by the Department of
811	Children and Family Services.--
812	(7)  Notwithstanding the provisions of s. 1001.42(4)(n),
813	the educational program at the Marianna Sunland Center in
814	Jackson County shall be operated by the Department of Education,
815	either directly or through grants or contractual agreements with
816	other public educational agencies. The annual state allocation
817	to any such agency shall be computed pursuant to s. 1011.62(1),
818	(2), and (6) (5) and allocated in the amount that would have
819	been provided the local school district in which the residential
820	facility is located.
821	Section 12.  Paragraph (a) of subsection (6) of section
822	1004.75, Florida Statutes, is amended to read:
823	1004.75  Training school consolidation pilot projects.--
824	(6)  FUNDING.--The Department of Education shall shift
825	funds generated by students in the pilot training centers
826	established by this section, including workforce development
827	recurring and nonrecurring funds, from the appropriate school
828	district to the respective community college. The community
829	college shall qualify for future facilities funding upon
830	transfer of the facility.
831	(a)  Consistent with s. 1011.62(8)(7), school districts
832	that transfer programs will receive an amount equal to 15
833	percent of the funding generated for the program under the FEFP
834	in 1996-1997.
835	Section 13.  Paragraph (a) of subsection (2) and paragraph
836	(b) of subsection (3) of section 1010.20, Florida Statutes, are
837	amended to read:
838	1010.20  Cost accounting and reporting for school
839	districts.--
840	(2)  COST REPORTING.--
841	(a)  Each district shall report on a district-aggregate
842	basis expenditures for inservice training pursuant to s.
843	1011.62(3) and for categorical programs as provided in s.
844	1011.62(6)(5).
845	(3)  PROGRAM EXPENDITURE REQUIREMENTS.--
846	(b)  Funds for inservice training established in s.
847	1011.62(3) and for categorical programs established in s.
848	1011.62(6)(5) shall be expended for the costs of the identified
849	programs as provided by law and in accordance with the rules of
850	the State Board of Education.
851	Section 14.  Section 1012.44, Florida Statutes, is amended
852	to read:
853	1012.44  Qualifications for certain persons providing
854	speech-language services.--The State Board of Education shall
855	adopt rules for speech-language services to school districts
856	that qualify for the sparsity supplement as described in s.
857	1011.62(7)(6). These services may be provided by baccalaureate
858	degree level persons for a period of 3 years. The rules shall
859	authorize the delivery of speech-language services by
860	baccalaureate degree level persons under the direction of a
861	certified speech-language pathologist with a master's degree or
862	higher. By October 1, 2003, these rules shall be reviewed by the
863	State Board of Education.
864	Section 15.  Sections 1010.60, 1010.61, 1010.611, 1010.612,
865	1010.613, 1010.614, 1010.615, 1010.616, 1010.617, 1010.618,
866	1010.619, and 1012.74, Florida Statutes, are repealed.
867	Section 16.  This act shall take effect July 1, 2006.
868
869	======= T I T L E  A M E N D M E N T ========
870	Remove the entire title and insert:
871	A bill to be entitled
872	An act relating to education funding; amending s. 551.106,
873	F.S.; allowing slot machine tax revenue to be made
874	available for bond payments if necessary to comply with
875	bond covenants; amending s. 1001.451, F.S.; authorizing
876	regional consortium service organizations to determine the
877	use of funds; specifying the time period for distribution
878	of funds; amending s. 1002.71, F.S.; authorizing
879	additional full-time equivalent student membership for
880	summer voluntary prekindergarten education programs at
881	public schools; amending s. 1009.535, F.S.; increasing the
882	award for Florida Medallion Scholars enrolled in community
883	college associate degree programs; creating s. 1010.62,
884	F.S., relating to revenue bonds and debt; providing
885	definitions; authorizing the Board of Governors to request
886	the issuance of revenue bonds for certain purposes;
887	providing for such bonds to be secured by or payable from
888	certain specified revenues; authorizing certain covenants,
889	commitments, or other provisions; providing for the
890	issuance of debt by a state university or direct-support
891	organization upon the approval of the Board of Governors;
892	providing requirements for such approval; authorizing
893	state universities and direct-support organizations to
894	lease-purchase equipment, issue promissory notes, and
895	secure debt with gifts and donations under certain
896	circumstances without approval of the Board of Governors;
897	providing requirements for a board of trustees in
898	obtaining approval for revenue bonds and capital outlay
899	projects; providing for the approval of certain specified
900	projects; authorizing the Board of Governors to adopt
901	policies; providing for the continued effect of current
902	commitments, contracts, or other obligations; amending s.
903	1011.62, F.S.; revising provisions relating to the funding
904	computation of special programs; revising provisions
905	relating to funding for instruction beyond the regular
906	school year; authorizing additional full-time equivalent
907	student membership for completion of high school level
908	algebra courses by certain students in grades 6 through 8;
909	authorizing additional full-time equivalent student
910	membership for the Florida Virtual School; revising
911	provisions relating to the prior year final taxable value;
912	establishing the discretionary millage compression
913	supplement and providing for the allocation of funds;
914	conforming provisions and correcting cross-references;
915	amending s. 1011.71, F.S.; revising provisions relating to
916	the discretionary millage levy prescribed by the
917	Legislature; amending s. 1013.62, F.S.; revising charter
918	school capital outlay allocation of funds; amending s.
919	1013.64, F.S.; revising construction cost maximums for
920	school district capital outlay projects; revising programs
921	the funds of which must meet the construction cost
922	maximums; amending ss. 110.1228, 402.22, 1004.75, 1010.20,
923	and 1012.44, F.S.; correcting cross-references; repealing
924	s. 1010.60, F.S., relating to State Board of Education
925	issuance of bonds; repealing s. 1010.61, F.S., relating to
926	State Board of Education powers for issuance of bonds;
927	repealing s. 1010.611, F.S., relating to resolution for
928	issuance of revenue certificates; repealing s. 1010.612,
929	F.S., relating to powers to secure revenue certificates;
930	repealing s. 1010.613, F.S., relating to remedies of any
931	holder of revenue certificates; repealing s. 1010.614,
932	F.S., relating to validity of revenue certificates;
933	repealing s. 1010.615, F.S., relating to prohibitions
934	against obligating the state; repealing s. 1010.616, F.S.,
935	relating to revenue certificate obligations of the State
936	Board of Education; repealing s. 1010.617, F.S., relating
937	to tax exemption and eligibility as legal investments;
938	repealing s. 1010.618, F.S., relating to the supplemental
939	nature of provisions relating to bonding; repealing s.
940	1010.619, F.S., relating to the Board of Administration
941	acting as fiscal agent; repealing s. 1012.74, F.S.,
942	relating to Florida educators professional liability
943	insurance protection; providing an effective date.

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