Florida Senate - 2008 PROPOSED COMMITTEE SUBSTITUTE

Bill No. CS for SB 696

618354

605-05027-08

Proposed Committee Substitute by the Committee on Higher Education

Appropriations

A bill to be entitled

An act relating to community colleges; amending s.

1001.64, F.S.; providing conditions for certain

contracting by community college boards of trustees;

authorizing boards of trustees to enter into certain

short-term loans and contracts and make payments subject

to appropriation; authorizing boards of trustees to incur

long-term debt according to specified requirements;

prohibiting a board of trustees from securing or repaying

such debt using tuition or certain other revenues;

amending s. 1004.70, F.S.; requiring community college

boards of trustees to authorize debt incurred by direct-

support organizations; authorizing delegation for approval

of short-term loans and lease-purchase agreements;

providing restrictions; amending s. 1009.22, F.S.,

relating to workforce education postsecondary student

fees, and s. 1009.23, F.S., relating to community college

student fees; revising provisions relating to the pledge

of fee revenues to the repayment of debt by community

college boards of trustees; providing requirements for the

request, issuance, securing, and payment of bonds;

providing for limitation of actions; amending s. 1000.21,

F.S.; renaming Daytona Beach Community College as "Daytona

Beach College and renaming Indian River Community College

as "Indian River College"; providing an effective date.

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

Section 1. Subsections (26) and (38) of section 1001.64,

Florida Statutes, are amended to read:

1001.64 Community college boards of trustees; powers and

duties.--

(26) Each board of trustees is authorized to contract for

the purchase, sale, lease, license, or acquisition in any manner,

(including purchase by installment or lease-purchase contract

which may provide for the payment of interest on the unpaid

portion of the purchase price and for the granting of a security

interest in the items purchased, subject to the provisions of

subsection (38) and ss. 1009.22 and 1009.23,) of goods,

materials, equipment, and services required by the community

college. The board of trustees may choose to consolidate

equipment contracts under master equipment financing agreements

made pursuant to s. 287.064.

(38) Each board of trustees is authorized to enter into

short-term loans and installment, lease-purchase, and other

financing contracts for a term of not more than 5 years,

including renewals, extensions, and refundings. Payments on

short-term loans and installment, lease-purchase, and other

financing contracts pursuant to this subsection shall be subject

to annual appropriation by the board of trustees. Each board of

trustees is authorized to borrow funds and incur long-term debt,

including promissory notes, installment sales agreements, lease-

purchase agreements, certificates of participation, and other

similar long-term financing arrangements, only as specifically

provided entering into lease-purchase agreements and the issuance

of revenue bonds as specifically authorized and only for the

purposes authorized in ss. 1009.22(6) and (9) and 1009.23(11) and

(12). At the option of the board of trustees, bonds issued

pursuant to ss. 1009.22(6) and (9) and 1009.23(11) and (12) may

be issued which are secured by a combination of revenues

authorized to be pledged to bonds pursuant to such subsections

ss. 1009.22(6) and 1009.23(11) or ss. 1009.22(9) and 1009.23(12).

Revenue bonds may not be secured by or paid from, directly or

indirectly, tuition, financial aid fees, the Community College

Program Fund, or any other operating revenues of a community

college. Lease-purchase agreements may be secured by a

combination of revenues as specifically authorized pursuant to

ss. 1009.22(7) and 1009.23(10).

Section 2. Paragraph (e) is added to subsection (4) of

section 1004.70, Florida Statutes, to read:

1004.70 Community college direct-support organizations.--

(4) ACTIVITIES; RESTRICTIONS.--

(e) A community college board of trustees must authorize

all debt, including lease-purchase agreements, incurred by a

direct-support organization. Authorization for approval of short-

term loans and lease-purchase agreements for a term of not more

than 5 years, including renewals, extensions, and refundings, for

goods, materials, equipment, and services may be delegated by the

board of trustees to the board of directors of the direct-support

organization. Trustees shall evaluate proposals for debt

according to guidelines issued by the Division of Community

Colleges. Revenues of the community college may not be pledged to

debt issued by direct-support organizations.

Section 3. Subsections (6) and (9) of section 1009.22,

Florida Statutes, are amended to read:

1009.22 Workforce education postsecondary student fees.--

(6)(a) Each district school board and community college

board of trustees may establish a separate fee for capital

improvements, technology enhancements, or equipping buildings

which may not exceed 5 percent of tuition for resident students

or 5 percent of tuition and out-of-state fees for nonresident

students. Funds collected by community colleges through the fee

these fees may be bonded only for the purpose of financing or

refinancing new construction and equipment, renovation, or

remodeling of educational facilities. The fee shall be collected

as a component part of the tuition and fees, paid into a separate

account, and expended only to construct and equip, maintain,

improve, or enhance the certificate career education or adult

education facilities of the school district or community college.

100

Projects funded through the use of the capital improvement fee

101

must meet the survey and construction requirements of chapter

102

1013. Pursuant to s. 216.0158, each district school board and

103

community college board of trustees shall identify each project,

104

including maintenance projects, proposed to be funded in whole or

105

in part by such fee. Capital improvement fee revenues may be

106

pledged by a board of trustees as a dedicated revenue source to

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the repayment of debt, including lease-purchase agreements, with

108

an overall term of not more than 7 years, including renewals,

109

extensions, and refundings, and revenue bonds, with a term not

110

exceeding to exceed 20 years, and not exceeding to exceed the

111

useful life of the asset being financed, only for the new

112

construction and equipment, renovation, or remodeling of

113

educational facilities. Bonds authorized pursuant to this

114

paragraph shall be requested by the community college board of

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trustees and shall be issued by the Division of Bond Finance in

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compliance with s. 11(d), Art. VII of the State Constitution and

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the State Bond Act. The Division of Bond Finance may pledge fees

118

collected by one or more community colleges to secure such bonds.

119

Any project included in the approved educational plant survey

120

pursuant to chapter 1013 is approved pursuant to s. 11(f), Art.

121

VII of the State Constitution. Community colleges may use the

122

services of the Division of Bond Finance of the State Board of

123

Administration to issue any bonds authorized through the

124

provisions of this subsection. Any such bonds issued by the

125

Division of Bond Finance shall be in compliance with the

126

provisions of the State Bond Act. Bonds issued pursuant to the

127

State Bond Act may shall be validated in the manner provided by

128

chapter 75. The complaint for such validation shall be filed in

129

the circuit court of the county where the seat of state

130

government is situated, the notice required to be published by s.

131

75.06 shall be published only in the county where the complaint

132

is filed, and the complaint and order of the circuit court shall

133

be served only on the state attorney of the circuit in which the

134

action is pending. A maximum of 15 cents per credit hour may be

135

allocated from the capital improvement fee for child care centers

136

conducted by the district school board or community college board

137

of trustees. The use of capital improvement fees for such purpose

138

shall be subordinate to the payment of any bonds secured by the

139

fees.

140

(b) The state does hereby covenant with the holders of the

141

bonds issued under paragraph (a) that it will not take any action

142

that will materially and adversely affect the rights of such

143

holders so long as the bonds authorized by paragraph (a) are

144

outstanding.

145

(9) Community college boards of trustees and district

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school boards are not authorized to charge students enrolled in

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workforce development programs any fee that is not specifically

148

authorized by statute. In addition to tuition, out-of-state,

149

financial aid, capital improvement, and technology fees, as

150

authorized in this section, community college boards of trustees

151

and district school boards are authorized to establish fee

152

schedules for the following user fees and fines: laboratory fees;

153

parking fees and fines; library fees and fines; fees and fines

154

relating to facilities and equipment use or damage; access or

155

identification card fees; duplicating, photocopying, binding, or

156

microfilming fees; standardized testing fees; diploma replacement

157

fees; transcript fees; application fees; graduation fees; and

158

late fees related to registration and payment. Such user fees and

159

fines shall not exceed the cost of the services provided and

160

shall only be charged to persons receiving the service. Parking

161

fee revenues may be pledged by a community college board of

162

trustees as a dedicated revenue source for the repayment of debt,

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including lease-purchase agreements, with an overall term of not

164

more than 7 years, including renewals, extensions, and

165

refundings, and revenue bonds with a term terms not exceeding 20

166

years and not exceeding the useful life of the asset being

167

financed. Community colleges shall use the services of the

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Division of Bond Finance of the State Board of Administration to

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issue any revenue bonds authorized by the provisions of this

170

subsection. Any such bonds issued by the Division of Bond Finance

171

shall be in compliance with the provisions of the State Bond Act.

172

Bonds issued pursuant to the State Bond Act may shall be

173

validated in the manner established in chapter 75. The complaint

174

for such validation shall be filed in the circuit court of the

175

county where the seat of state government is situated, the notice

176

required to be published by s. 75.06 shall be published only in

177

the county where the complaint is filed, and the complaint and

178

order of the circuit court shall be served only on the state

179

attorney of the circuit in which the action is pending.

180

Section 4. Subsections (11) and (12) of section 1009.23,

181

Florida Statutes, are amended to read:

182

1009.23 Community college student fees.--

183

(11)(a) Each community college board of trustees may

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establish a separate fee for capital improvements, technology

185

enhancements, or equipping student buildings which may not exceed

186

10 percent of tuition for resident students or 10 percent of the

187

sum of tuition and out-of-state fees for nonresident students.

188

The fee for resident students shall be limited to an increase of

189

$2 per credit hour over the prior year. Funds collected by

190

community colleges through the fee these fees may be bonded only

191

as provided in this subsection for the purpose of financing or

192

refinancing new construction and equipment, renovation, or

193

remodeling of educational facilities. The fee shall be collected

194

as a component part of the tuition and fees, paid into a separate

195

account, and expended only to construct and equip, maintain,

196

improve, or enhance the educational facilities of the community

197

college. Projects funded through the use of the capital

198

improvement fee shall meet the survey and construction

199

requirements of chapter 1013. Pursuant to s. 216.0158, each

200

community college shall identify each project, including

201

maintenance projects, proposed to be funded in whole or in part

202

by such fee.

203

(b) Capital improvement fee revenues may be pledged by a

204

board of trustees as a dedicated revenue source to the repayment

205

of debt, including lease-purchase agreements, with an overall

206

term, including renewals, extensions, and refundings, of not more

207

than 7 years, including renewals, extensions, and refundings, and

208

revenue bonds with a term not exceeding to exceed 20 annual

209

maturities and not exceeding to exceed the useful life of the

210

asset being financed, only for financing or refinancing of the

211

new construction and equipment, renovation, or remodeling of

212

educational facilities. Bonds authorized pursuant to through the

213

provisions of this subsection shall be requested by the community

214

college board of trustees and shall be issued by the Division of

215

Bond Finance upon the request of the community college board of

216

trustees in compliance with the provisions of s. 11(d), Art. VII

217

of the State Constitution and the State Bond Act. The Division of

218

Bond Finance may pledge fees collected by one or more community

219

colleges to secure such bonds. Any project included in the

220

approved educational plant survey pursuant to chapter 1013 is

221

approved pursuant to s. 11(f)(d), Art. VII of the State

222

Constitution.

223

(c)(d) Any validation of the Bonds issued pursuant to this

224

subsection may be validated shall be in the manner provided by

225

chapter 75. Only the initial series of bonds is required to be

226

validated. The complaint for such validation shall be filed in

227

the circuit court of the county where the seat of state

228

government is situated, the notice required to be published by s.

229

75.06 shall be published only in the county where the complaint

230

is filed, and the complaint and order of the circuit court shall

231

be served only on the state attorney of the circuit in which the

232

action is pending.

233

(d)(e) A maximum of 15 percent may be allocated from the

234

capital improvement fee for child care centers conducted by the

235

community college. The use of capital improvement fees for such

236

purpose shall be subordinate to the payment of any bonds secured

237

by the fees.

238

(e)(c) The state does hereby covenant with the holders of

239

the bonds issued under this subsection that it will not take any

240

action that will materially and adversely affect the rights of

241

such holders so long as the bonds authorized by this subsection

242

are outstanding.

243

(12) In addition to tuition, out-of-state, financial aid,

244

capital improvement, student activity and service, and technology

245

fees authorized in this section, each community college board of

246

trustees is authorized to establish fee schedules for the

247

following user fees and fines: laboratory fees; parking fees and

248

fines; library fees and fines; fees and fines relating to

249

facilities and equipment use or damage; access or identification

250

card fees; duplicating, photocopying, binding, or microfilming

251

fees; standardized testing fees; diploma replacement fees;

252

transcript fees; application fees; graduation fees; and late fees

253

related to registration and payment. Such user fees and fines

254

shall not exceed the cost of the services provided and shall only

255

be charged to persons receiving the service. A community college

256

may not charge any fee except as authorized by law or rules of

257

the State Board of Education. Parking fee revenues may be pledged

258

by a community college board of trustees as a dedicated revenue

259

source for the repayment of debt, including lease-purchase

260

agreements, with an overall term of not more than 7 years,

261

including renewals, extensions, and refundings, and revenue bonds

262

with a term terms not exceeding 20 years and not exceeding the

263

useful life of the asset being financed. Community colleges shall

264

use the services of the Division of Bond Finance of the State

265

Board of Administration to issue any revenue bonds authorized by

266

the provisions of this subsection. Any such bonds issued by the

267

Division of Bond Finance shall be in compliance with the

268

provisions of the State Bond Act. Bonds issued pursuant to the

269

State Bond Act may shall be validated in the manner established

270

in chapter 75. The complaint for such validation shall be filed

271

in the circuit court of the county where the seat of state

272

government is situated, the notice required to be published by s.

273

75.06 shall be published only in the county where the complaint

274

is filed, and the complaint and order of the circuit court shall

275

be served only on the state attorney of the circuit in which the

276

action is pending.

277

Section 5. Paragraphs (e) and (k) of subsection (3) of

278

section 1000.21, Florida Statutes, are amended to read:

279

1000.21 Systemwide definitions.--As used in the Florida K-

280

20 Education Code:

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(3) "Community college," except as otherwise specifically

282

provided, includes the following institutions and any branch

283

campuses, centers, or other affiliates of the institution:

284

(e) Daytona Beach Community College.

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(k) Indian River Community College.

286

Section 6. This act shall take effect July 1, 2008.