Florida Senate - 2014 SB 628
By Senator Montford
3-00593-14 2014628__
1 A bill to be entitled
2 An act relating to educational facilities financing;
3 renaming chapter 243, F.S., and part II thereof to
4 conform to changes made by the act; amending ss.
5 243.50, 243.51, 243.52, 243.53, 243.54, 243.59,
6 243.66, 243.67, and 243.73, F.S.; revising provisions
7 relating to the financing of independent nonprofit
8 higher educational facilities to include financing for
9 private nonprofit elementary, middle, and secondary
10 schools meeting certain criteria; revising the short
11 title and findings to conform; revising definitions;
12 renaming the facilities financing authority to
13 conform; revising powers of the authority, including
14 the issuance and payment of bonds, to conform;
15 revising the date for submission of an annual
16 financial report by the authority to the Governor and
17 Legislature; providing an effective date.
18
19 Be It Enacted by the Legislature of the State of Florida:
20
21 Section 1. Chapter 243, Florida Statutes, entitled “Higher
22 Educational Facilities Bonds,” is renamed “Educational
23 Facilities Bonds.” Part II of that chapter, entitled “Higher
24 Educational Facilities Financing,” is renamed “Educational
25 Facilities Financing.”
26 Section 2. Section 243.50, Florida Statutes, is amended to
27 read:
28 243.50 Short title.—Sections 243.50-243.77 may be cited as
29 the “Higher Educational Facilities Financing Act.”
30 Section 3. Section 243.51, Florida Statutes, is amended to
31 read:
32 243.51 Findings and declarations.—It is the purpose of ss.
33 243.50-243.77 to provide a measure of assistance and an
34 alternative method enabling private educational institutions in
35 of higher education of this state to provide the facilities and
36 structures that they need and to enable those institutions to
37 coordinate their budgetary needs with the timing of receipt of
38 tuition revenues.
39 Section 4. Subsections (3) through (8) of section 243.52,
40 Florida Statutes, are amended to read:
41 243.52 Definitions.—As used in ss. 243.50-243.77, the term:
42 (3) “Project” means a structure suitable for use as a
43 dormitory or other housing facility, dining hall, student union,
44 administration building, academic building, library, laboratory,
45 research facility, classroom, athletic facility, health care
46 facility, or maintenance, storage, or utility facility, and
47 other structures or facilities related thereto, or required
48 thereto, or required or useful for the instruction of students,
49 or the conducting of research, or the operation of an
50 educational institution, including parking and other facilities
51 or structures, essential or convenient for the orderly conduct
52 of such institution and includes equipment and machinery and
53 other similar items necessary or convenient for the operation of
54 a particular facility or structure in the manner for which its
55 use is intended but does not include such items as books, fuel,
56 supplies, or other items that are customarily deemed to result
57 in a current operating charge. The term also dormitory, student
58 service facility, parking facility, administration building,
59 academic building, or library and includes a loan in
60 anticipation of tuition revenues by an educational institution
61 of higher education, as defined in subsection (6).
62 (4) “Cost,” as applied to a project or any portion thereof
63 financed under ss. 243.50-243.77, includes all or any part of
64 the cost of construction and acquisition of all lands,
65 structures, real property, rights, rights-of-way, franchises,
66 easements, and interests acquired or used for a project; the
67 cost of demolishing or removing any buildings or structures on
68 land so acquired, including the cost of acquiring any lands to
69 which the buildings or structures may be removed; the cost of
70 all machinery and equipment, financing charges, and interest
71 before, during, and for a period of 30 months after completion
72 of the construction; provisions for working capital, reserves
73 for principal, interest, and rebate; provisions for extensions,
74 enlargements, additions, and improvements; the cost of
75 engineering, financial, and legal services; the cost of plans,
76 specifications, studies, surveys, estimates of costs and
77 revenues, administrative expenses, and expenses necessary to
78 determining the feasibility or practicability of constructing
79 the project; and other expenses necessary for constructing and
80 acquiring the project, financing the construction, and placing
81 the project in operation. In the case of a loan in anticipation
82 of tuition revenues, the term “cost” means the amount of the
83 loan in anticipation of revenues which does not exceed the
84 amount of tuition revenues anticipated to be received by the
85 borrowing educational institution of higher education in the 1
86 year period following the date of the loan, plus costs related
87 to the issuance of the loan, or the amount of the bonds, the
88 proceeds of which fund the loans and any related cost of debt
89 service, reserve funds, and rebate associated therewith.
90 (5) “Bond” or “revenue bond” means a revenue bond of the
91 authority issued under ss. 243.50-243.77, including a revenue
92 refunding bond, notwithstanding that it may be secured by
93 mortgage or the full faith and credit of a participating
94 institution of higher education or any other lawfully pledged
95 security of a participating institution of higher education.
96 (6) “Educational institution of higher education” means:
97 (a) An independent nonprofit college or university that
98 which is located in and chartered by the state; that which is
99 accredited by the Commission on Colleges of the Southern
100 Association of Colleges and Schools; that which grants
101 baccalaureate degrees; and that which is not a state university
102 or Florida College System institution state community college.
103 (b) A private nonprofit elementary, middle, or secondary
104 school that is located in and chartered by the state and
105 accredited by the Southern Association of Colleges and Schools.
106 (7) “Participating institution” means an educational
107 institution of higher education, as defined in subsection (6),
108 which that undertakes the financing and construction or
109 acquisition of a project or undertakes the refunding or
110 refinancing of obligations or of a mortgage or of advances as
111 provided in and permitted by ss. 243.50-243.77.
112 (8) “Loan in anticipation of tuition revenues” means a loan
113 to a participating an institution of higher education under
114 circumstances in which tuition revenues anticipated to be
115 received by the institution in any budget year are estimated to
116 be insufficient at any time during the budget year to pay the
117 operating expenses or other obligations of the institution in
118 accordance with the budget of the institution.
119 Section 5. Subsections (1) and (2) of section 243.53,
120 Florida Statutes, are amended to read:
121 243.53 Creation of Higher Educational Facilities Financing
122 Authority.—
123 (1) There is created a public body corporate and politic to
124 be known as the Higher Educational Facilities Financing
125 Authority. The authority is constituted as a public
126 instrumentality, and the exercise by the authority of the powers
127 conferred by ss. 243.50-243.77 is considered to be the
128 performance of an essential public function. Chapters 119 and
129 286 apply to the authority.
130 (2) The authority shall consist of five members to be
131 appointed by the Governor, subject to confirmation by the
132 Senate. One member shall be a trustee, director, officer, or
133 employee of a participating an institution of higher education.
134 Of the members first appointed, one shall serve for 1 year, one
135 for 2 years, one for 3 years, one for 4 years, and one for 5
136 years, and in each case until his or her successor is appointed
137 and has qualified. Thereafter, the Governor shall appoint, for
138 terms of 5 years each, a member or members to succeed those
139 whose terms expire. The Governor shall fill any vacancy for an
140 unexpired term. A member of the authority is eligible for
141 reappointment. Any member of the authority may be removed by the
142 Governor for misfeasance, malfeasance, or willful neglect of
143 duty. Each member of the authority before entering upon his or
144 her duties shall take and subscribe to the oath or affirmation
145 required by the State Constitution. A record of each oath must
146 be filed in the office of the Department of State and with the
147 authority.
148 Section 6. Section 243.54, Florida Statutes, is amended to
149 read:
150 243.54 Powers of the authority.—The purpose of the
151 authority is to assist participating institutions of higher
152 education in constructing, financing, and refinancing projects
153 throughout the state, and, for this purpose, the authority may:
154 (1) Exercise all powers granted to corporations under the
155 Florida Business Corporation Act, chapter 607.
156 (2) Have perpetual succession as a body politic and
157 corporate and adopt bylaws for the regulation of its affairs and
158 the conduct of its business.
159 (3) Adopt an official seal and alter the same at its
160 pleasure.
161 (4) Maintain an office at any place in the state that it
162 may designate.
163 (5) Sue and be sued in its own name, and plead and be
164 impleaded.
165 (6) Make and execute financing agreements, leases, as
166 lessee or as lessor, contracts, deeds, and other instruments
167 necessary or convenient in the exercise of the powers and
168 functions of the authority, including contracts with persons,
169 firms, corporations, federal and state agencies, and other
170 authorities, which state agencies and other authorities are
171 authorized to enter into contracts and otherwise cooperate with
172 the authority to facilitate the financing, construction,
173 leasing, or sale of any project or the institution of any
174 program; engage in sale-leaseback, lease-purchase, lease
175 leaseback, or other undertakings and provide for the sale of
176 certificates of participation incident thereto; and enter into
177 interlocal agreements in the manner provided in s. 163.01.
178 (7) Determine the location and character of any project to
179 be financed under ss. 243.50-243.77 and may:
180 (a) Construct, reconstruct, maintain, repair, and lease the
181 project as lessee or lessor.
182 (b) Enter into contracts for any of those purposes.
183 (c) Designate a participating institution as its agent to
184 determine the location and character of a project undertaken by
185 a participating institution under ss. 243.50-243.77 and, as the
186 agent of the authority, construct, reconstruct, maintain,
187 repair, own, and lease the project as lessee or lessor.
188 (8) Issue bonds, bond anticipation notes, and other
189 obligations of the authority for any of its corporate purposes,
190 including the provision of funds to pay all or any part of the
191 cost of any project and to fund or refund the cost of any
192 project as provided in ss. 243.50-243.77.
193 (9) Establish rules for the use of a project or any portion
194 thereof and designate a participating institution as its agent
195 to establish rules for the use of a project undertaken by the
196 participating institution.
197 (10) Employ consulting engineers, architects, attorneys,
198 accountants, construction and financial experts,
199 superintendents, managers, and other employees and agents as
200 necessary, and fix their compensation.
201 (11) Receive and accept from any public agency loans or
202 grants for or in aid of the construction of a project or any
203 portion thereof, and receive and accept loans, grants, aid, or
204 contributions from any source of money, property, labor, or
205 other things of value, to be held, used, and applied only for
206 the purposes for which the loans, grants, aid, and contributions
207 are made.
208 (12) Mortgage any project and the site thereof for the
209 benefit of the holders of revenue bonds issued to finance
210 projects or those providing credit for that purpose.
211 (13) Make loans to any participating institution for the
212 cost of a project, including a loan in anticipation of tuition
213 revenues, in accordance with an agreement between the authority
214 and the participating institution. However, a loan may not
215 exceed the total cost of the project as determined by the
216 participating institution and approved by the authority.
217 (14) Make loans to a participating institution to refund
218 outstanding obligations, mortgages, or advances issued, made, or
219 given by the participating institution for the cost of a
220 project.
221 (15) Charge to and equitably apportion among participating
222 institutions its administrative costs and expenses incurred in
223 the exercise of the powers and duties conferred by ss. 243.50
224 243.77.
225 (16) Contract with an entity as its agent to assist the
226 authority in screening applications of participating
227 institutions of higher education for loans under ss. 243.50
228 243.77 and receive any recommendations the entity may make.
229 (17) Do all things necessary or convenient to carry out the
230 purposes of ss. 243.50-243.77.
231 Section 7. Section 243.59, Florida Statutes, is amended to
232 read:
233 243.59 Approval required to issue bonds.—The authority is
234 created for the purpose of promoting private nonprofit higher
235 education and issuing bonds on behalf of the state, and the
236 Governor may approve any bonds issued by the authority which
237 require approval under federal law.
238 Section 8. Section 243.66, Florida Statutes, is amended to
239 read:
240 243.66 Payment of bonds.—Revenue bonds issued under ss.
241 243.50-243.77 are not a debt or liability of the authority, any
242 municipality, the state, or any political subdivision thereof,
243 and are not a pledge of the faith and credit of the state, the
244 authority, any municipality, or any political subdivision
245 thereof, but are payable solely from revenues of the authority
246 pertaining to the project relating to the issue; payments by
247 participating institutions of higher education, banks, insurance
248 companies, or others under letters of credit or purchase
249 agreements; investment earnings from funds or accounts
250 maintained under the bond resolution; insurance proceeds; loan
251 funding deposits; proceeds of sales of education loans; proceeds
252 of refunding obligations; and fees, charges, and other revenues
253 of the authority from the project. All revenue bonds must
254 contain on the face thereof a statement to the effect that
255 neither the authority nor any municipality, the state, or any
256 political subdivision thereof is obligated to pay the bond or
257 the interest thereon except from revenues of the project or the
258 portion thereof for which they are issued, and that neither the
259 faith and credit nor the taxing power of the authority, any
260 municipality, the state, or any political subdivision thereof is
261 pledged to the payment of the principal of or the interest on
262 the bonds. The issuance of revenue bonds under ss. 243.50-243.77
263 may not directly, indirectly, or contingently obligate the
264 authority, any municipality, the state, or any political
265 subdivision thereof to levy or to pledge any form of taxation
266 therefor or to make any appropriation for their payment.
267 Section 9. Subsection (3) of section 243.67, Florida
268 Statutes, is amended to read:
269 243.67 Rates, rents, fees, and charges.—
270 (3) The use and disposition of moneys to the credit of a
271 sinking or other similar fund must be subject to the resolution
272 authorizing the issuance of the bonds or of the trust agreement.
273 Except as otherwise provided in the resolution or the trust
274 agreement, the sinking or other similar fund must be a fund for
275 all revenue bonds issued to finance projects at a particular
276 participating institution of higher education without
277 distinction or priority of one over another. However, the
278 authority in any resolution or trust agreement may provide that
279 the sinking or other similar fund be the fund for a particular
280 project at a participating institution and for payment of the
281 revenue bonds issued to finance that project, and may,
282 additionally, permit and provide for the issuance of revenue
283 bonds having a subordinate lien in respect of the security
284 authorized to other revenue bonds of the authority, and, in such
285 case, the authority may create separate sinking or other similar
286 funds in respect of the subordinate lien bonds.
287 Section 10. Subsection (1) of section 243.73, Florida
288 Statutes, is amended to read:
289 243.73 Reports; audits.—
290 (1) The authority shall submit to the Governor and the
291 presiding officers of each house of the Legislature, within 4 2
292 months after the end of its fiscal year, a complete and detailed
293 report setting forth:
294 (a) Its operations and accomplishments.
295 (b) Its receipts and expenditures during its fiscal year in
296 accordance with the categories or classifications established by
297 the authority for its operating and capital outlay purposes.
298 (c) Its assets and liabilities at the end of its fiscal
299 year and the status of reserve, special, or other funds.
300 (d) A schedule of its bonds outstanding at the end of its
301 fiscal year, together with a statement of the principal amounts
302 of bonds issued and redeemed during the fiscal year.
303 (e) Any other information the authority deems appropriate.
304 Section 11. This act shall take effect July 1, 2014.