Florida Senate - 2023 SB 598 By Senator Martin 33-00423-23 2023598__ 1 A bill to be entitled 2 An act relating to higher educational facilities 3 financing; amending s. 243.51, F.S.; modifying 4 legislative findings and declarations regarding the 5 Higher Education Facilities Financing Act; amending s. 6 243.52, F.S.; revising the definition of the term 7 “institution of higher education”; amending s. 243.53, 8 F.S.; specifying when the term for a new appointee to 9 the Higher Educational Facilities Financing Authority 10 begins; defining the term “communications media 11 technology”; revising a requirement for when action 12 may be taken by the authority; authorizing the 13 authority to conduct meetings and workshops by means 14 of communications media technology; providing notice 15 requirements for meetings and workshops; amending s. 16 243.54, F.S.; authorizing the authority to contract 17 with an entity to assist with administrative matters; 18 amending s. 243.58, F.S.; prohibiting the authority 19 from entering into a financing agreement with a 20 participating institution for a project if at the time 21 the agreement is executed certain conditions exist; 22 amending s. 243.73, F.S.; revising the timeframe 23 within which the authority is required to submit a 24 report to the Governor and the Legislature; providing 25 an effective date. 26 27 Be It Enacted by the Legislature of the State of Florida: 28 29 Section 1. Section 243.51, Florida Statutes, is amended to 30 read: 31 243.51 Findings and declarations.—It is the purpose of ss. 32 243.50-243.77 to providea measure ofassistance and an 33 alternative method for enabling private institutions of higher 34 education inofthis state to provide the facilities and 35 structures that they need and to enable those institutions to 36 coordinate their budgetary needs with the timing of receipt of 37 tuition revenues. The necessity of the public interest of the 38 provisions hereinafter enacted is hereby declared as a matter of 39 legislative determination. 40 Section 2. Subsection (6) of section 243.52, Florida 41 Statutes, is amended to read: 42 243.52 Definitions.—As used in ss. 243.50-243.77, the term: 43 (6) “Institution of higher education” means an educational 44 institution that by virtue of law or charter is an accredited, 45 nonprofit educational institution empowered to provide a program 46 of education beyond the high school levelindependent nonprofit47college or university which is located in and chartered by the48state; which is accredited by the Commission on Colleges of the49Southern Association of Colleges and Schools; which grants50baccalaureate degrees;and thatwhichis not a state university 51 or Florida College System institution. 52 Section 3. Subsections (2) and (5) of section 243.53, 53 Florida Statutes, are amended to read: 54 243.53 Creation of Higher Educational Facilities Financing 55 Authority.— 56 (2) The authority shall consist of five members to be 57 appointed by the Governor, subject to confirmation by the 58 Senate. One member shall be a trustee, director, officer, or 59 employee of an institution of higher education. Of the members 60 first appointed, one shall serve for 1 year, one for 2 years, 61 one for 3 years, one for 4 years, and one for 5 years, and in 62 each case until his or her successor is appointed and has 63 qualified. Thereafter, the Governor shall appoint for terms of 5 64 years each a member or members to succeed those whose terms 65 expire, beginning on the later of the dates on which the current 66 term expires or the date of appointment by the Governor. The 67 Governor shall fill any vacancy for an unexpired term. A member 68 of the authority is eligible for reappointment. Any member of 69 the authority may be removed by the Governor for misfeasance, 70 malfeasance, or willful neglect of duty. Each member of the 71 authority before entering upon his or her duties shall take and 72 subscribe to the oath or affirmation required by the State 73 Constitution. A record of each oath must be filed in the office 74 of the Department of State and with the authority. 75 (5)(a) As used in this subsection, the term “communications 76 media technology” means telephone conference, video conference, 77 or other communications technology by which all persons 78 attending a public meeting or workshop may audibly communicate. 79 (b) A majority of the members of the authority constitutes 80 a quorum, and the affirmative vote of a majority of the members 81 participating in thepresent at ameeting of the authority is 82 necessary for any action taken by the authority. A vacancy in 83 the membership of the authority does not impair the right of a 84 quorum to exercise all the rights and perform all the duties of 85 the authority. Any action taken by the authority under ss. 86 243.50-243.77 may be authorized by resolution at any regular or 87 special meeting, and each resolution takesshall takeeffect 88 immediately and doesneednot need to be published or posted. 89 The authority may conduct public meetings and workshops by means 90 of communications media technology. The notice for any such 91 public meeting or workshop must state that the meeting or 92 workshop will be conducted through the use of communications 93 media technology, must specify how persons interested in 94 attending may do so, and must provide a location where 95 communications media technology facilities are available. The 96 participation by an officer, a board member, or any other 97 representative of a member public agency in a meeting or 98 workshop conducted through communications media technology 99 constitutes that individual’s presence at such meeting or 100 workshop. 101 Section 4. Subsection (16) of section 243.54, Florida 102 Statutes, is amended to read: 103 243.54 Powers of the authority.—The purpose of the 104 authority is to assist institutions of higher education in 105 constructing, financing, and refinancing projects throughout the 106 state and, for this purpose, the authority may: 107 (16) Contract with an entity as its agent to assist the 108 authority with administrative matters and in screening 109 applications of institutions of higher education for loans under 110 ss. 243.50-243.77 and receive any recommendations the entity may 111 make. 112 Section 5. Subsection (2) of section 243.58, Florida 113 Statutes, is amended to read: 114 243.58 Criteria and requirements.—In undertaking any 115 project under ss. 243.50-243.77, the authority shall be guided 116 by and shall observe the following criteria and requirements: 117 (2) A financing agreement for a project may not be entered 118 into with a participating institution that is not, at the time 119 such agreement is executed, financially responsible and fully 120 capable of and willing to fulfill its obligations under the 121 financing agreement, including the obligations to make payments 122 in the amounts and at the times required; to operate, repair, 123 and maintain at its own expense the project owned or leased; and 124 to serve the purposes of ss. 243.50-243.77 and any other 125 responsibilities that may be imposed under the financing 126 agreement. In determining the financial responsibility of the 127 participating institution, consideration willmustbe given to 128 the party’s ratio of current assets to current liabilities; net 129 worth; endowments; pledges; earning trends; coverage of all 130 fixed charges; the nature of the project involved; its inherent 131 stability; any guarantee of the obligations by some other 132 financially responsible corporation, firm, or person; means by 133 which the bonds are to be marketed to the public; and other 134 factors determinative of the capability of the participating 135 institution, financially and otherwise, to fulfill its 136 obligations consistently with the purposes of ss. 243.50-243.77. 137 Section 6. Subsection (1) of section 243.73, Florida 138 Statutes, is amended to read: 139 243.73 Reports; audits.— 140 (1) The authority shall submit to the Governor and the 141 presiding officers of each house of the Legislature, within 62142 months after the end of its fiscal year, a complete and detailed 143 report setting forth: 144 (a) Its operations and accomplishments. 145 (b) Its receipts and expenditures during its fiscal year in 146 accordance with the categories or classifications established by 147 the authority for its operating and capital outlay purposes. 148 (c) Its assets and liabilities at the end of its fiscal 149 year and the status of reserve, special, or other funds. 150 (d) A schedule of its bonds outstanding at the end of its 151 fiscal year, together with a statement of the principal amounts 152 of bonds issued and redeemed during the fiscal year. 153 (e) Any other information the authority deems appropriate. 154 Section 7. This act shall take effect July 1, 2023.