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Senate Bill 0564

Florida Senate - 1998 SB 564 By Senator Kurth 15-598-98 1 A bill to be entitled 2 An act relating to higher education; amending 3 s. 240.299, F.S.; providing reporting 4 requirements for university direct-support 5 organizations; amending s. 240.311, F.S., 6 relating to rules of the State Board of 7 Community Colleges; requiring a community 8 college district board of trustees to annually 9 evaluate the college president; amending s. 10 240.324, F.S.; providing an additional 11 requirement for the accountability plan for 12 community colleges; amending ss. 240.331, 13 240.3315, F.S.; prescribing membership of 14 boards of directors and executive committees of 15 community college direct-support organizations 16 and statewide community college direct-support 17 organizations; restricting activities of such 18 direct-support organizations; providing 19 reporting requirements for such organizations; 20 amending s. 240.3335, F.S.; removing the 21 authority of a board of directors of a center 22 of technology innovation to acquire, lease, or 23 sublease property; amending s. 240.363, F.S.; 24 providing restrictions upon the transfer of 25 funds to a direct-support organization; 26 providing an effective date. 27 28 Be It Enacted by the Legislature of the State of Florida: 29 30 Section 1. Subsection (6) is added to section 240.299, 31 Florida Statutes, to read: 1 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 564 15-598-98 1 240.299 Direct-support organizations; use of property; 2 board of directors; audit; facilities.-- 3 (6) ANNUAL BUDGETS AND REPORTS.--Each direct-support 4 organization shall submit to the university president and the 5 Board of Regents its federal Internal Revenue Service 6 Application for Recognition of Exemption form (Form 1023) and 7 its federal Internal Revenue Service Return of Organization 8 Exempt from Income Tax form (Form 990). 9 Section 2. Paragraph (f) of subsection (3) of section 10 240.311, Florida Statutes, is amended to read: 11 240.311 State Board of Community Colleges; powers and 12 duties.-- 13 (3) The State Board of Community Colleges shall: 14 (f) Specify, by rule, procedures to be used by the 15 boards of trustees in the annual periodic evaluations of 16 presidents and formally review the evaluations of presidents 17 by the boards of trustees. 18 Section 3. Present paragraph (g) of subsection (1) of 19 section 240.324, Florida Statutes, is redesignated as 20 paragraph (h) and a new paragraph (g) is added to that 21 subsection, to read: 22 240.324 Community college accountability process.-- 23 (1) It is the intent of the Legislature that a 24 management and accountability process be implemented which 25 provides for the systematic, ongoing improvement and 26 assessment of the improvement of the quality and efficiency of 27 the State Community College System. Accordingly, the State 28 Board of Community Colleges and the community college boards 29 of trustees shall develop and implement a plan to improve and 30 evaluate the instructional and administrative efficiency and 31 2 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 564 15-598-98 1 effectiveness of the State Community College System. This 2 plan must address the following issues: 3 (g) Institutional assessment efforts related to the 4 requirements of s. III in the Criteria for Accreditation of 5 the Commission on Colleges of the Southern Association of 6 Colleges and Schools. 7 Section 4. Section 240.331, Florida Statutes, is 8 amended to read: 9 240.331 Community college direct-support 10 organizations.-- 11 (1) DEFINITIONS.--For the purposes of this section: 12 (a) "Community college direct-support organization" 13 means an organization that which is: 14 1. A Florida corporation not for profit, incorporated 15 under the provisions of chapter 617 and approved by the 16 Department of State. 17 2. Organized and operated exclusively to receive, 18 hold, invest, and administer property and to make expenditures 19 to, or for the benefit of, a community college in this state. 20 The direct-support organization may, at the request of the 21 district board of trustees, provide residency opportunities on 22 or near the college campus for students. Community College 23 Program Fund and Public Education Capital Outlay funds may not 24 be used to construct, maintain, or operate such facilities. 25 3. An organization that which the board of trustees, 26 after review, has certified to be operating in a manner 27 consistent with the goals of the community college and in the 28 best interest of the state. Any organization that which is 29 denied certification by the board of trustees may shall not 30 use the name of the community college that which it serves. 31 3 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 564 15-598-98 1 (b) "Personal services" includes full-time or 2 part-time personnel as well as payroll processing. 3 (2) BOARD OF DIRECTORS.--The chairperson of the board 4 of trustees shall appoint a representative to the board of 5 directors and the executive committee of each statewide, 6 direct-support organization established under this section, 7 including those established before July 1, 1998. The president 8 of the community college for which the direct-support 9 organization is established, or the president's designee, 10 shall also serve on the board of directors and the executive 11 committee of the direct-support organization, including any 12 direct-support organization established before July 1, 1998. 13 (3)(2) USE OF PROPERTY.-- 14 (a) The board of trustees is authorized to permit the 15 use of property, facilities, and personal services at any 16 state community college by any community college 17 direct-support organization, subject to the provisions of this 18 section. 19 (b) The board of trustees is authorized to prescribe 20 by rule any condition with which a community college 21 direct-support organization must comply in order to use 22 property, facilities, or personal services at any state 23 community college. 24 (c) The board of trustees may shall not permit the use 25 of property, facilities, or personal services at any state 26 community college by any community college direct-support 27 organization that which does not provide equal employment 28 opportunities to all persons regardless of race, color, 29 national origin, sex, age, or religion. 30 (4) ACTIVITIES; RESTRICTIONS.-- 31 4 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 564 15-598-98 1 (a) A direct-support organization may, at the request 2 of the district board of trustees, provide residency 3 opportunities on or near campus for students. 4 (b) A community college may not pledge public funds or 5 property to pay for or guarantee the payment of any bonds or 6 other obligation issued by a direct-support organization or by 7 a unit of local government on behalf of a direct-support 8 organization. However, a community college that has incurred 9 such a legal obligation before March 6, 1998, may continue to 10 honor that obligation. Each community college board of 11 trustees may adopt policies that provide procedures for 12 transferring to the direct-support organization of that 13 community college, for administration by the organization, 14 contributions made to the community college. 15 (c) A direct-support organization that constructs 16 facilities for use by a community college or its students must 17 comply with all requirements of this chapter relating to the 18 construction of facilities by a community college, including 19 requirements for competitive bidding. 20 (d) Any transaction or agreement between one 21 direct-support organization and another direct-support 22 organization or between a direct-support organization and a 23 center of technology innovation designated under s. 240.335 24 must be approved by the district board of trustees. 25 (5) ANNUAL BUDGETS AND REPORTS.--Each direct-support 26 organization shall submit to the board of trustees its federal 27 Internal Revenue Service Application for Recognition of 28 Exemption form (Form 1023) and its federal Internal Revenue 29 Service Return of Organization Exempt From Income Tax form 30 (Form 990). 31 5 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 564 15-598-98 1 (6)(3) ANNUAL AUDIT.--Each direct-support organization 2 shall make provisions for an annual postaudit of its financial 3 accounts to be conducted by an independent certified public 4 accountant in accordance with rules to be promulgated by the 5 district board of trustees. The annual audit report must 6 shall be submitted to the Auditor General, the State Board of 7 Community Colleges, and the board of trustees for review. The 8 board of trustees and the Auditor General may shall have the 9 authority to require and receive from the organization or from 10 its independent auditor any detail or supplemental data 11 relative to the operation of the organization. The identity 12 of donors who desire to remain anonymous shall be protected, 13 and that anonymity shall be maintained in the auditor's 14 report. All records of the organization, other than the 15 auditor's report, any information necessary for the auditor's 16 report, any information related to the expenditure of funds, 17 and any supplemental data requested by the board of trustees 18 and the Auditor General, shall be confidential and exempt from 19 the provisions of s. 119.07(1). 20 Section 5. Section 240.3315, Florida Statutes, is 21 amended to read: 22 240.3315 Statewide community college direct-support 23 organizations.-- 24 (1) DEFINITIONS.--For the purposes of this section: 25 (a) "Statewide community college direct-support 26 organization" means an organization that which is: 27 1. A Florida corporation not for profit, incorporated 28 under the provisions of chapter 617 and approved by the 29 Department of State. 30 2. Organized and operated exclusively to receive, 31 hold, invest, and administer property and to make expenditures 6 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 564 15-598-98 1 to, or for the benefit of, the Community College System in 2 this state. 3 3. An organization that which the State Board of 4 Community Colleges, after review, has certified to be 5 operating in a manner consistent with the goals of the 6 Community College System and in the best interest of the 7 state. Any organization that which is denied certification by 8 the State Board of Community Colleges may shall not use the 9 name of any community college. 10 (b) "Personal services" includes full-time or 11 part-time personnel as well as payroll processing. 12 (2) BOARD OF DIRECTORS.--The chairperson of the State 13 Board of Community Colleges may appoint a representative to 14 the board of directors and the executive committee of any 15 statewide, direct-support organization established under this 16 section or s. 240.331. The chairperson of the State Board of 17 Community Colleges, or the chairperson's designee, shall also 18 serve on the board of directors and the executive committee of 19 any direct-support organization established to benefit the 20 State Community College System. 21 (3)(2) USE OF PROPERTY.-- 22 (a) The State Board of Community Colleges may is 23 authorized to permit the use of property, facilities, and 24 personal services of the Division of Community Colleges by any 25 statewide community college direct-support organization, 26 subject to the provisions of this section. 27 (b) The State Board of Community Colleges may is 28 authorized to prescribe by rule any condition with which a 29 statewide community college direct-support organization must 30 comply in order to use property, facilities, or personal 31 services of the Division of Community Colleges. 7 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 564 15-598-98 1 (c) The State Board of Community Colleges may shall 2 not permit the use of property, facilities, or personal 3 services of the Division of Community Colleges by any 4 statewide community college direct-support organization that 5 which does not provide equal employment opportunities to all 6 persons regardless of race, color, national origin, sex, age, 7 or religion. 8 (4) RESTRICTIONS.-- 9 (a) A statewide, direct-support organization may not 10 use public funds to acquire, construct, maintain, or operate 11 any facilities. 12 (b) Any transaction or agreement between a statewide, 13 direct-support organization and any other direct-support 14 organization or between a statewide, direct-support 15 organization and a center of technology innovation designated 16 under s. 240.3335 must be approved by the State Board of 17 Community Colleges. 18 (5) ANNUAL BUDGETS AND REPORTS.--Each direct-support 19 organization shall submit to the State Board of Community 20 Colleges its federal Internal Revenue Service Application for 21 Recognition of Exemption form (Form 1023) and its federal 22 Internal Revenue Service Return of Organization Exempt From 23 Income Tax form (Form 990). 24 (6)(3) ANNUAL AUDIT.--A statewide community college 25 direct-support organization shall make provisions for an 26 annual postaudit of its financial accounts to be conducted by 27 an independent certified public accountant in accordance with 28 rules to be adopted by the State Board of Community Colleges. 29 The annual audit report shall be submitted to the Auditor 30 General and the State Board of Community Colleges for review. 31 The State Board of Community Colleges and the Auditor General 8 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 564 15-598-98 1 shall have the authority to require and receive from the 2 organization or from its independent auditor any detail or 3 supplemental data relative to the operation of the 4 organization. The identity of a donor or prospective donor who 5 desires to remain anonymous and all information identifying 6 such donor or prospective donor are confidential and exempt 7 from the provisions of s. 119.07(1) and s. 24(a), Art. I of 8 the State Constitution. Such anonymity shall be maintained in 9 the auditor's report. 10 Section 6. Subsection (7) of section 240.3335, Florida 11 Statutes, is amended to read: 12 240.3335 Centers of technology innovation.-- 13 (7) Each center shall have a board of directors with 14 at least five members who shall be appointed by the district 15 board of trustees. The board of directors is shall be 16 responsible for overseeing the operation of the center, 17 approval of the annual budget, and setting policy to guide the 18 director in the operation of the center. The board of 19 directors shall have the authority to acquire, lease, and 20 sublease property subject to the provisions of general law. 21 The board of directors shall consist of at least the 22 following: 23 (a) The director of the center. 24 (b) The vice president of academic affairs, or the 25 equivalent, of the community college. 26 (c) The vice president of business affairs, or the 27 equivalent, of the community college. 28 (d) Two members designated by the president of the 29 community college. 30 Section 7. Section 240.363, Florida Statutes, is 31 amended to read: 9 CODING: Words stricken are deletions; words underlined are additions. Florida Senate - 1998 SB 564 15-598-98 1 240.363 Financial accounting and expenditures.--All 2 funds accruing to the benefit of a community college must 3 shall be received, accounted for, and expended in accordance 4 with rules of the State Board of Community Colleges. A 5 community college may not transfer public funds or property to 6 a direct-support organization or pledge public funds or 7 property to pay or guarantee the payment of any bonds or other 8 obligations issued by a direct-support organization or by a 9 unit of local government on behalf of a direct-support 10 organization, except that each community college board of 11 trustees may adopt policies that provide procedures for 12 transferring private contributions to the community college to 13 the direct-support organization of that the community college 14 for administration by such organization private contributions 15 made to the community college. However, if a community college 16 had incurred such a legal obligation before March 6, 1998, it 17 may continue to honor that obligation. 18 Section 8. This act shall take effect July 1, 1998. 19 20 ***************************************** 21 SENATE SUMMARY 22 Provides reporting requirements for university direct-support organizations. Provides an additional 23 requirement for the accountability plan for community colleges. Prescribes membership of boards of directors 24 and executive committees of community college direct-support organizations and statewide community 25 college direct-support organizations. Restricts the activities of such direct-support organizations. Provides 26 reporting requirements for such organizations. Removes from a board of directors of a center of technology 27 innovation the authority to acquire, lease, or sublease property. 28 29 30 31 10