Florida Senate - 2013 COMMITTEE AMENDMENT Bill No. CS for CS for SB 84 Barcode 257648 LEGISLATIVE ACTION Senate . House Comm: WD . 04/25/2013 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 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,
the27 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 shallnot 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 tothe 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 educational56 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 notbe used to secure revenue bonds of 61 another only if unlessthe 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 shallnot 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 toincurring 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 of101 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 notbe used to secure debt of another only if 111 unlessthe 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, orstudent 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.