Florida Senate - 2015                              CS for SB 938
       
       
        
       By the Committee on Higher Education; and Senators Flores and
       Soto
       
       
       
       
       589-02766-15                                           2015938c1
    1                        A bill to be entitled                      
    2         An act relating to postsecondary education
    3         affordability; amending s. 212.08, F.S.; exempting
    4         textbooks required or recommended for a course offered
    5         by a public or nonpublic postsecondary educational
    6         institution from the tax imposed by ch. 212, F.S.;
    7         authorizing the Department of Revenue to adopt
    8         emergency rules; providing for expiration; amending s.
    9         1001.7065, F.S.; conforming provisions to changes made
   10         by the act; creating s. 1004.084, F.S.; requiring the
   11         Board of Governors and the State Board of Education to
   12         identify strategies and initiatives to reduce the cost
   13         of higher education; requiring the Board of Governors
   14         and the state board to annually submit a report to the
   15         Governor and the Legislature; amending s. 1004.085,
   16         F.S.; defining the term “instructional materials”;
   17         revising policies and procedures relating to
   18         textbooks; requiring a public postsecondary
   19         institution to post information relating to required
   20         and recommended textbooks and instructional materials
   21         and prices in its course registration system and on
   22         its website; requiring the state board and the Board
   23         of Governors to adopt textbook and instructional
   24         materials affordability policies, procedures, and
   25         guidelines; providing requirements for the use of
   26         adopted undergraduate textbooks and instructional
   27         materials; requiring annual reporting of textbook and
   28         instructional materials cost information and
   29         affordability policies and procedures to the
   30         Chancellor of the Florida College System or the
   31         Chancellor of the State University System; requiring
   32         electronic copies of the affordability policies and
   33         procedures be sent annually to the state board or the
   34         Board of Governors; amending s. 1009.22, F.S.;
   35         revising the amount tuition may vary for the combined
   36         total of the standard tuition and out-of-state fees;
   37         amending s. 1009.23, F.S.; prohibiting resident
   38         tuition at a Florida College System institution from
   39         exceeding a specified amount per credit hour; revising
   40         the amount tuition may vary for the combined total of
   41         the standard tuition and out-of-state fees; requiring
   42         a Florida College System institution to publicly
   43         notice meetings at which votes on proposed tuition or
   44         fee increases are scheduled; amending s. 1009.24,
   45         F.S.; prohibiting resident undergraduate tuition at a
   46         state university from exceeding a specified amount per
   47         credit hour; removing authority for a designee of the
   48         Board of Governors to establish graduate and
   49         professional tuition and out-of-state fees;
   50         prohibiting graduate and professional program tuition
   51         from exceeding a specified amount; requiring a state
   52         university to publicly notice meetings at which votes
   53         on proposed tuition or fee increases are scheduled;
   54         providing an effective date.
   55          
   56  Be It Enacted by the Legislature of the State of Florida:
   57  
   58         Section 1. Paragraph (r) of subsection (7) of section
   59  212.08, Florida Statutes, is amended to read:
   60         212.08 Sales, rental, use, consumption, distribution, and
   61  storage tax; specified exemptions.—The sale at retail, the
   62  rental, the use, the consumption, the distribution, and the
   63  storage to be used or consumed in this state of the following
   64  are hereby specifically exempt from the tax imposed by this
   65  chapter.
   66         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
   67  entity by this chapter do not inure to any transaction that is
   68  otherwise taxable under this chapter when payment is made by a
   69  representative or employee of the entity by any means,
   70  including, but not limited to, cash, check, or credit card, even
   71  when that representative or employee is subsequently reimbursed
   72  by the entity. In addition, exemptions provided to any entity by
   73  this subsection do not inure to any transaction that is
   74  otherwise taxable under this chapter unless the entity has
   75  obtained a sales tax exemption certificate from the department
   76  or the entity obtains or provides other documentation as
   77  required by the department. Eligible purchases or leases made
   78  with such a certificate must be in strict compliance with this
   79  subsection and departmental rules, and any person who makes an
   80  exempt purchase with a certificate that is not in strict
   81  compliance with this subsection and the rules is liable for and
   82  shall pay the tax. The department may adopt rules to administer
   83  this subsection.
   84         (r) School books and school lunches; institution of higher
   85  learning prepaid meal plans; postsecondary education textbooks.—
   86         1. This exemption applies to school books used in regularly
   87  prescribed courses of study, and to school lunches served in
   88  public, parochial, or nonprofit schools operated for and
   89  attended by pupils of grades K through 12. Yearbooks, magazines,
   90  newspapers, directories, bulletins, and similar publications
   91  distributed by such educational institutions to their students
   92  are also exempt.
   93         2.School books and Food sold or served at community
   94  colleges and other institutions of higher learning is are
   95  taxable, except that prepaid meal plans purchased from a college
   96  or other institution of higher learning by students currently
   97  enrolled at that college or other institution of higher learning
   98  are exempt. As used in this subparagraph, the term paragraph,
   99  “prepaid meal plans” means payment in advance to a college or
  100  institution of higher learning for the provision of a defined
  101  quantity of units that must expire at the end of an academic
  102  term, cannot be refunded to the student upon expiration, and
  103  which may only be exchanged for food.
  104         3. This exemption also applies to textbooks that are
  105  required or recommended for a course offered by a public
  106  postsecondary educational institution as defined in s. 1000.04
  107  or a nonpublic postsecondary educational institution that is
  108  eligible to participate in the tuition assistance programs
  109  authorized by s. 1009.89 or s. 1009.891. As used in this
  110  subparagraph, the term “textbooks” means any required or
  111  recommended manual of instruction or instructional materials as
  112  defined in s. 1004.085(1) in any branch of study. To obtain the
  113  tax exemption, the student must provide either a physical or an
  114  electronic copy of the following items to the vendor:
  115         a. His or her student identification number; and
  116         b. An applicable course syllabus or the list of required
  117  and recommended textbooks and instructional materials provided
  118  pursuant to s. 1004.085(4).
  119  
  120  The vendor shall maintain documentation, as prescribed by
  121  department rule, to identify complete transactions or portions
  122  of a transaction involving the sale of postsecondary education
  123  textbooks that are exempt from the tax imposed under this
  124  chapter.
  125         Section 2. (1) The executive director of the Department of
  126  Revenue is authorized, and all conditions are deemed met, to
  127  adopt emergency rules pursuant to ss. 120.536(1) and 120.54(4),
  128  Florida Statutes, for the purpose of implementing the amendment
  129  made by this act to s. 212.08(7), Florida Statutes.
  130         (2) Notwithstanding any provision of law, emergency rules
  131  adopted pursuant to subsection (1) shall remain in effect for 6
  132  months after the date adopted and may be renewed during the
  133  pendency of procedures to adopt permanent rules addressing the
  134  subject of the emergency rules.
  135         (3) This section expires July 1, 2018.
  136         Section 3. Paragraph (k) of subsection (4) of section
  137  1001.7065, Florida Statutes, is amended to read:
  138         1001.7065 Preeminent state research universities program.—
  139         (4) PREEMINENT STATE RESEARCH UNIVERSITY INSTITUTE FOR
  140  ONLINE LEARNING.—A state research university that, as of July 1,
  141  2013, meets all 12 of the academic and research excellence
  142  standards identified in subsection (2), as verified by the Board
  143  of Governors, shall establish an institute for online learning.
  144  The institute shall establish a robust offering of high-quality,
  145  fully online baccalaureate degree programs at an affordable cost
  146  in accordance with this subsection.
  147         (k) The university shall establish a tuition structure for
  148  its online institute in accordance with this paragraph,
  149  notwithstanding any other provision of law.
  150         1. For students classified as residents for tuition
  151  purposes, tuition for an online baccalaureate degree program
  152  shall be set at no more than 75 percent of the tuition rate as
  153  specified in the General Appropriations Act pursuant to s.
  154  1009.24(4) and 75 percent of the tuition differential pursuant
  155  to s. 1009.24(16). No distance learning fee, fee for campus
  156  facilities, or fee for on-campus services may be assessed,
  157  except that online students shall pay the university’s
  158  technology fee, financial aid fee, and Capital Improvement Trust
  159  Fund fee. The revenues generated from the Capital Improvement
  160  Trust Fund fee shall be dedicated to the university’s institute
  161  for online learning.
  162         2. For students classified as nonresidents for tuition
  163  purposes, tuition may be set at market rates in accordance with
  164  the business plan.
  165         3. Tuition for an online degree program shall include all
  166  costs associated with instruction, materials, and enrollment,
  167  excluding costs associated with the provision of textbooks and
  168  instructional materials pursuant to s. 1004.085 and physical
  169  laboratory supplies.
  170         4. Subject to the limitations in subparagraph 1., tuition
  171  may be differentiated by degree program as appropriate to the
  172  instructional and other costs of the program in accordance with
  173  the business plan. Pricing must incorporate innovative
  174  approaches that incentivize persistence and completion,
  175  including, but not limited to, a fee for assessment, a bundled
  176  or all-inclusive rate, and sliding scale features.
  177         5. The university must accept advance payment contracts and
  178  student financial aid.
  179         6. Fifty percent of the net revenues generated from the
  180  online institute of the university shall be used to enhance and
  181  enrich the online institute offerings, and 50 percent of the net
  182  revenues generated from the online institute shall be used to
  183  enhance and enrich the university’s campus state-of-the-art
  184  research programs and facilities.
  185         7. The institute may charge additional local user fees
  186  pursuant to s. 1009.24(14) upon the approval of the Board of
  187  Governors.
  188         8. The institute shall submit a proposal to the president
  189  of the university authorizing additional user fees for the
  190  provision of voluntary student participation in activities and
  191  additional student services.
  192         Section 4. Section 1004.084, Florida Statutes, is created
  193  to read:
  194         1004.084 College affordability.—The Board of Governors and
  195  State Board of Education shall continue to identify strategies
  196  and initiatives to further ensure college affordability for all
  197  Floridians.
  198         (1)Specific strategies and initiatives to reduce the cost
  199  of higher education must include, at a minimum, consideration of
  200  the following:
  201         (a)The impact of tuition and fee increases at state
  202  colleges and universities, including graduate, professional,
  203  medical, and law schools.
  204         (b)The total cost of fees to a student and family at a
  205  state university or a state college, including orientation fees.
  206         (c)The cost of textbooks and instructional materials for
  207  all students. The Board of Governors and State Board of
  208  Education shall use the information provided pursuant to s.
  209  1004.085(5) and (6) and consult with students, faculty,
  210  bookstores, and publishers, to determine the best methods to
  211  reduce costs and must, at a minimum, consider the following:
  212         1.Any existing Florida College System or State University
  213  System initiatives to reduce the cost of textbooks and
  214  instructional materials.
  215         2.Purchasing e-textbooks in bulk.
  216         3.Expanding the use of open-access textbooks and
  217  instructional materials.
  218         4.The rental options for textbook and instructional
  219  materials.
  220         5.Increasing the availability and use of affordable
  221  digital textbooks and learning objects for faculty and students.
  222         6.Supporting efficient used book sales, buy-back sales,
  223  and student-to-student sales.
  224         7.Developing online portals at each institution to assist
  225  students in buying, renting, selling, and sharing textbooks and
  226  instructional materials.
  227         8. The feasibility of expanding and enhancing digital
  228  access platforms that are used by campus stores to help students
  229  acquire the correct and least expensive required course
  230  materials.
  231         9. The cost to school districts of instructional materials
  232  for dual enrollment students.
  233         (2) By December 31, 2015, and annually thereafter, the
  234  Board of Governors and State Board of Education shall submit a
  235  report on their respective college affordability efforts, which
  236  must include recommendations, to the Governor, the President of
  237  the Senate, and the Speaker of the House of Representatives.
  238         Section 5. Section 1004.085, Florida Statutes, is amended
  239  to read:
  240         1004.085 Textbook and instructional materials
  241  affordability.—
  242         (1)As used in this section, the term “instructional
  243  materials” means educational materials, in printed or digital
  244  format, which are required or recommended for use within a
  245  course.
  246         (2)(1)An No employee of a Florida College System
  247  institution or a state university may not demand or receive any
  248  payment, loan, subscription, advance, deposit of money, service,
  249  or anything of value, present or promised, in exchange for
  250  requiring students to purchase a specific textbook or
  251  instructional material for coursework or instruction.
  252         (3)(2) An employee may receive:
  253         (a) Sample copies, instructor copies, or instructional
  254  materials. These materials may not be sold for any type of
  255  compensation if they are specifically marked as free samples not
  256  for resale.
  257         (b) Royalties or other compensation from sales of textbooks
  258  or instructional materials that include the instructor’s own
  259  writing or work.
  260         (c) Honoraria for academic peer review of course materials.
  261         (d) Fees associated with activities such as reviewing,
  262  critiquing, or preparing support materials for textbooks or
  263  instructional materials pursuant to guidelines adopted by the
  264  State Board of Education or the Board of Governors.
  265         (e) Training in the use of course materials and learning
  266  technologies.
  267         (4)(3)Each Florida College System institution institutions
  268  and state university universities shall prominently post in the
  269  course registration system and on its website on their websites,
  270  as early as is feasible, but at least 14 not less than 30 days
  271  before prior to the first day of student registration class for
  272  each term, a hyperlink to lists list of each textbook required
  273  and recommended textbooks and instructional materials for at
  274  least 90 percent of the courses and course sections each course
  275  offered at the institution during the upcoming term.
  276         (a)These lists The posted list must include:
  277         1. The International Standard Book Number (ISBN) for each
  278  required and recommended textbook and instructional materials.
  279         2. For a textbook or instructional materials for which an
  280  ISBN is not available, textbook or other identifying
  281  information, which must include, at a minimum, all of the
  282  following: the title, all authors listed, publishers, edition
  283  number, copyright date, published date, and other relevant
  284  information necessary to identify the specific textbook or
  285  instructional materials textbooks required and recommended for
  286  each course.
  287         3.The new and used retail price and the rental price, if
  288  applicable, for a required or recommended textbook or
  289  instructional materials for purchase at the institution’s
  290  designated bookstore or other specified vendor, including the
  291  website or other contact information for the bookstore.
  292         (b) The State Board of Education and the Board of Governors
  293  shall include in the policies, procedures, and guidelines
  294  adopted under subsection (5) (4) certain limited exceptions to
  295  this notification requirement for courses classes added after
  296  the notification deadline.
  297         (c) An institution that is unable to comply with this
  298  subsection by the 2015 fall semester must provide the
  299  information required by this subsection to students, in a format
  300  determined by the institution, at least 60 days before the first
  301  day of classes. The institution must also submit a quarterly
  302  report to the State Board of Education or to the Board of
  303  Governors, as applicable, documenting the institution’s efforts
  304  to comply with this subsection by the 2016 fall semester.
  305         (5)(4) The State Board of Education and the Board of
  306  Governors each shall adopt textbook and instructional materials
  307  affordability policies, procedures, and guidelines for
  308  implementation by Florida College System institutions and state
  309  universities, respectively, which that further efforts to
  310  minimize the cost of textbooks and instructional materials for
  311  students attending such institutions, while maintaining the
  312  quality of education and academic freedom. The policies,
  313  procedures, and guidelines must, at a minimum, require shall
  314  provide for the following:
  315         (a) That textbook and instructional materials adoptions are
  316  made with sufficient lead time to bookstores so as to confirm
  317  availability of the requested materials and, if where possible,
  318  ensure maximum availability of used textbooks and instructional
  319  materials books.
  320         (b) That, in the textbook and instructional material
  321  adoption process, the intent to use all items ordered,
  322  particularly each individual item sold as part of a bundled
  323  package, is confirmed by the course instructor or the academic
  324  department offering the course before the adoption is finalized.
  325         (c) That a course instructor or the academic department
  326  offering the course determine determines, before a textbook or
  327  instructional materials are is adopted, the extent to which a
  328  new edition differs significantly and substantively from earlier
  329  versions and the value to the student of changing to a new
  330  edition or the extent to which an open-access textbook or
  331  instructional materials may exist and be used.
  332         (d) That the establishment of policies shall address the
  333  availability of required and recommended textbooks and
  334  instructional materials to students otherwise unable to afford
  335  the cost, including consideration of the extent to which an
  336  open-access textbook or instructional materials may be used.
  337         (e) That course instructors and academic departments are
  338  encouraged to participate in the development, adaptation, and
  339  review of open-access textbooks and instructional materials and,
  340  in particular, open-access textbooks and instructional materials
  341  for high-demand general education courses.
  342         (f)That postsecondary institutions consult with school
  343  districts with which they have a dual enrollment articulation
  344  agreement to identify practices that impact the cost to school
  345  districts of dual enrollment textbooks and instructional
  346  materials, including, but not limited to, the length of time
  347  that textbooks and instructional materials remain in use and the
  348  costs associated with digital materials.
  349         (g)That cost-benefit analyses be conducted regularly in
  350  comparing options to ensure that students receive the highest
  351  quality product at the lowest available price.
  352         (6)Each Florida College System institution and each state
  353  university shall report annually to the Chancellor of the
  354  Florida College System or the Chancellor of the State University
  355  System, as applicable, the cost of undergraduate textbooks and
  356  instructional materials, by course and course section; the
  357  textbook and instructional materials selection process for high
  358  enrollment courses as determined by the chancellors; specific
  359  initiatives of the institution which reduce the cost of
  360  textbooks and instructional materials; the number of courses and
  361  course sections that were not able to meet the textbook and
  362  instructional materials posting deadline; and additional
  363  information as determined by the chancellors. Annually, by
  364  December 31, the chancellors shall compile the institution
  365  reports and submit a comprehensive report to the Governor, the
  366  President of the Senate, and the Speaker of the House of
  367  Representatives.
  368         (7)Each Florida College System institution and state
  369  university shall annually send the State Board of Education or
  370  the Board of Governors, as applicable, electronic copies of its
  371  current textbook and instructional materials affordability
  372  policies and procedures. The State Board of Education and the
  373  Board of Governors shall provide a link to this information on
  374  their respective websites.
  375         Section 6. Paragraph (d) of subsection (3) of section
  376  1009.22, Florida Statutes, is amended to read:
  377         1009.22 Workforce education postsecondary student fees.—
  378         (3)
  379         (d) Each district school board and each Florida College
  380  System institution board of trustees may adopt tuition and out
  381  of-state fees that vary no more than 5 percent below or no more
  382  than 5 percent above the combined total of the standard tuition
  383  and out-of-state fees established in paragraph (c).
  384         Section 7. Paragraph (b) of subsection (3) and subsection
  385  (4) of section 1009.23, Florida Statutes, are amended, and
  386  subsection (20) is added to that section, to read:
  387         1009.23 Florida College System institution student fees.—
  388         (3)
  389         (b) Effective July 1, 2014, For baccalaureate degree
  390  programs, the following tuition and fee rates shall apply:
  391         1. The tuition may not exceed shall be $91.79 per credit
  392  hour for students who are residents for tuition purposes.
  393         2. The sum of the tuition and the he out-of-state fee per
  394  credit hour for students who are nonresidents for tuition
  395  purposes shall be no more than 85 percent of the sum of the
  396  tuition and the out-of-state fee at the state university nearest
  397  the Florida College System institution.
  398         (4) Each Florida College System institution board of
  399  trustees shall establish tuition and out-of-state fees, which
  400  may vary no more than 10 percent below and no more than 15
  401  percent above the combined total of the standard tuition and
  402  fees established in subsection (3).
  403         (20) Each Florida College System institution shall notice
  404  to the public and to all enrolled students any board of trustees
  405  meeting that votes on proposed increases in tuition or fees. The
  406  noticed meeting must allow for public comment on the proposed
  407  increase and must:
  408         (a) Be posted 28 days before the board of trustees meeting
  409  takes place.
  410         (b) Include the date and time of the meeting.
  411         (c) Be clear and specifically outline the details of the
  412  original tuition or fee, the rationale for the proposed
  413  increase, and what the proposed increase will fund.
  414         (d) Be posted on the institution’s website homepage and
  415  issued in a press release.
  416         Section 8. Paragraphs (a) and (b) of subsection (4) of
  417  section 1009.24, Florida Statutes, are amended, present
  418  subsection (19) of that section is redesignated as subsection
  419  (20), and a new subsection (19) is added to that section, to
  420  read:
  421         1009.24 State university student fees.—
  422         (4)(a) Effective July 1, 2014, The resident undergraduate
  423  tuition for lower-level and upper-level coursework may not
  424  exceed shall be $105.07 per credit hour.
  425         (b) The Board of Governors, or the board’s designee, may
  426  establish tuition for graduate and professional programs, and
  427  out-of-state fees for all programs. Except as otherwise provided
  428  in this section, the sum of tuition and out-of-state fees
  429  assessed to nonresident students must be sufficient to offset
  430  the full instructional cost of serving such students. However,
  431  adjustments to out-of-state fees or tuition for graduate
  432  programs and professional programs may not exceed 15 percent in
  433  any year. Adjustments to the resident tuition for graduate
  434  programs and professional programs may not exceed the tuition
  435  amount set on July 1, 2015.
  436         (19)Each university shall publicly notice to the public
  437  and to all enrolled students any board of trustees meeting that
  438  votes on proposed increases in tuition or fees. The noticed
  439  meeting must allow for public comment on the proposed increase
  440  and must:
  441         (a)Be posted 28 days before the board of trustees meeting
  442  takes place.
  443         (b)Include the date and time of the meeting.
  444         (c)Be clear and specifically outline the details of the
  445  original tuition or fee, the rationale for the proposed
  446  increase, and what the proposed increase will fund.
  447         (d)Be posted on the institution’s website homepage and
  448  issued in a press release.
  449         Section 9. This act shall take effect July 1, 2015.