Florida Senate - 2013                        COMMITTEE AMENDMENT
       Bill No. CS for CS for SB 84
       
       
       
       
       
       
                                Barcode 257648                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  04/25/2013           .                                
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       The Committee on Appropriations (Latvala) recommended the
       following:
       
    1         Senate Amendment to Amendment (456632) (with title
    2  amendment)
    3  
    4         Between lines 742 and 743
    5  insert:
    6         Section 5. Paragraph (c) of subsection (1), paragraph (a)
    7  of subsection (2), paragraph (a) of subsection (3), and
    8  paragraph (a) of subsection (7) of section 1010.62, Florida
    9  Statutes, are amended to read:
   10         1010.62 Revenue bonds and debt.—
   11         (1) As used in this section, the term:
   12         (c) “Debt” means bonds, except revenue bonds as defined in
   13  paragraph (e), loans, promissory notes, lease-purchase
   14  agreements, certificates of participation, installment sales,
   15  leases, public-private partnership agreements, or any other
   16  financing mechanism or financial arrangement, whether or not a
   17  debt for legal purposes, for financing or refinancing for or on
   18  behalf of a state university or a direct-support organization or
   19  for the acquisition, construction, improvement, or purchase of
   20  capital outlay projects.
   21         (2)(a) The Board of Governors may request the issuance of
   22  revenue bonds pursuant to the State Bond Act and s. 11(d), Art.
   23  VII of the State Constitution to finance or refinance capital
   24  outlay projects permitted by law. Revenue bonds may be secured
   25  by or payable only from those revenues authorized for such
   26  purpose, including the Capital Improvement Trust Fund fee, the
   27  building fee, the health fee, the transportation access fee,
   28  hospital revenues, or those revenues derived from or received in
   29  relation to sales and services of auxiliary enterprises or
   30  component units of the university, including, but not limited
   31  to, housing, transportation, health care, research or research
   32  related activities, food service, retail sales, athletic
   33  activities, or other similar services, other revenues
   34  attributable to the projects to be financed or refinanced, any
   35  other revenue approved by the Legislature for facilities
   36  construction or for securing revenue bonds issued pursuant to s.
   37  11(d), Art. VII of the State Constitution, or any other revenues
   38  permitted by law. Revenues from the activity and service fee and
   39  the athletic fee may be used to pay and secure revenue bonds
   40  except that the annual debt service may shall not exceed an
   41  amount equal to 5 percent of the fees collected during the most
   42  recent 12 consecutive months for which collection information is
   43  available before prior to the sale of the bonds. The assets of a
   44  university foundation and the earnings thereon may also be used
   45  to pay and secure revenue bonds of the university or its direct
   46  support organizations. Revenues from royalties and licensing
   47  fees may also be used to pay and secure revenue bonds so long as
   48  either the facilities being financed are functionally related to
   49  the university operation or direct-support organization
   50  reporting such royalties and licensing fees, or such revenues
   51  are used to secure revenue bonds issued to finance academic,
   52  educational, or research facilities that are part of a
   53  multipurpose capital outlay project. Revenue bonds may not be
   54  secured by or be payable from, directly or indirectly, tuition,
   55  the financial aid fee, sales and services of educational
   56  departments, revenues from grants and contracts, except for
   57  money received for overhead and indirect costs and other moneys
   58  not required for the payment of direct costs, or any other
   59  operating revenues of a state university. Revenues from one
   60  auxiliary enterprise may not be used to secure revenue bonds of
   61  another only if unless the Board of Governors, after review and
   62  analysis, determines that either the facilities being financed
   63  are functionally related to the auxiliary enterprise revenues
   64  being used to secure such revenue bonds or such revenues are
   65  used to secure revenue bonds issued to finance academic,
   66  educational, or research facilities that are part of a
   67  multipurpose capital outlay project.
   68         (3)(a) A state university or direct-support organization
   69  may not issue debt without the approval of the Board of
   70  Governors. The Board of Governors may approve the issuance of
   71  debt by a state university or a direct-support organization only
   72  when such debt is used to finance or refinance capital outlay
   73  projects. The debt may be secured by or payable only from those
   74  revenues authorized for such purpose, including the health fee,
   75  the transportation access fee, hospital revenues, or those
   76  revenues derived from or received in relation to sales and
   77  services of auxiliary enterprises or component units of the
   78  university, including, but not limited to, housing,
   79  transportation, health care, research or research-related
   80  activities, food service, retail sales, athletic activities, or
   81  other similar services. Revenues derived from the activity and
   82  service fee and the athletic fee may be used to pay and secure
   83  debt except that the annual debt service may shall not exceed an
   84  amount equal to 5 percent of the fees collected during the most
   85  recent 12 consecutive months for which collection information is
   86  available before prior to incurring the debt. The assets of
   87  university foundations and the earnings thereon may be used to
   88  pay and secure debt of the university or its direct-support
   89  organizations. Gifts and donations or pledges of gifts may also
   90  be used to secure debt so long as the maturity of the debt,
   91  including extensions, renewals, and refundings, does not exceed
   92  5 years. Revenues from royalties and licensing fees may also be
   93  used to secure debt so long as either the facilities being
   94  financed are functionally related to the university operation or
   95  direct-support organization reporting such royalties and
   96  licensing fees or such revenues are used to secure debt issued
   97  to finance academic, educational, or research facilities that
   98  are part of a multipurpose capital outlay project. The debt may
   99  not be secured by or be payable from, directly or indirectly,
  100  tuition, the financial aid fee, sales and services of
  101  educational departments, revenues from grants and contracts,
  102  except for money received for overhead and indirect costs and
  103  other moneys not required for the payment of direct costs of
  104  grants, or any other operating revenues of a state university.
  105  The debt of direct-support organizations may not be secured by
  106  or be payable under an agreement or contract with a state
  107  university unless the source of payments under such agreement or
  108  contract is limited to revenues that universities are authorized
  109  to use for payment of debt service. Revenues from one auxiliary
  110  enterprise may not be used to secure debt of another only if
  111  unless the Board of Governors, after review and analysis,
  112  determines that either the facilities being financed are
  113  functionally related to the auxiliary enterprise revenues being
  114  used to secure such debt or such revenues are used to secure
  115  debt issued to finance academic, educational, or research
  116  facilities that are part of a multipurpose capital outlay
  117  project. Debt may not be approved to finance or refinance
  118  operating expenses of a state university or a direct-support
  119  organization. The maturity of debt used to finance or refinance
  120  the acquisition of equipment or software, including any
  121  extensions, renewals, or refundings thereof, shall be limited to
  122  5 years or the estimated useful life of the equipment or
  123  software, whichever is shorter. The Board of Governors may
  124  establish conditions and limitations on such debt as it
  125  determines to be advisable.
  126         (7)(a) As required pursuant to s. 11(d), Art. VII of the
  127  State Constitution and subsection (6), the Legislature approves
  128  capital outlay projects meeting the following requirements:
  129         1. The project is located on a campus of a state university
  130  or on land leased to the university or is used for activities
  131  relating to the state university;
  132         2. The project is included in the master plan of the state
  133  university or is for facilities that are not required to be in a
  134  university’s master plan;
  135         3. The project is approved by the Board of Governors as
  136  being consistent with the strategic plan of the state university
  137  and the programs offered by the state university; and
  138         4. The project is for purposes relating to the housing,
  139  transportation, health care, research or research-related
  140  activities, food service, retail sales, or student activities,
  141  or academic or educational activities of the state university.
  142  
  143  ================= T I T L E  A M E N D M E N T ================
  144         And the title is amended as follows:
  145         Delete line 781
  146  and insert:
  147         applicability; amending s. 1010.62, F.S.; adding
  148         public-private partnership agreements to the
  149         definition of the term university “debt”; revising
  150         sources that may be used to secure or pay revenue
  151         bonds; authorizing revenues from royalties and
  152         licensing and auxiliary enterprise revenues to be used
  153         to secure debt for academic, educational, and research
  154         facilities that are part of a multipurpose project;
  155         authorizing academic and educational activities to be
  156         bonded without legislative approval of the specific
  157         project; providing an effective date.