Senate Bill 1450e2

CODING: Words stricken are deletions; words underlined are additions.







    CS for CS for SB 1450                   Second Engrossed (ntc)



  1                      A bill to be entitled

  2         An act relating to financing for private

  3         not-for-profit institutions of higher

  4         education; providing findings and declarations;

  5         creating the Higher Educational Facilities

  6         Financing Authority; providing for its powers;

  7         providing for criteria for and covenants

  8         relating to the authorization of the issuance

  9         of notes and revenue bonds not obligating the

10         full faith and credit of the authority, any

11         municipality, the state, or any political

12         subdivision thereof; providing for loans from

13         revenue bonds to participating institutions;

14         requiring bond-validation proceedings;

15         providing for trust funds and remedies of

16         bondholders; providing for a tax exemption;

17         providing for agreement of the state; providing

18         other powers and authorities incident thereto;

19         requiring reports and audits; amending s.

20         196.012, F.S.; providing that institutions

21         funded by this act are educational institutions

22         for purposes of state taxation; amending s.

23         196.198, F.S.; maintaining exemption from

24         taxation for property leased from a

25         governmental agency if the agency continues to

26         use the property exclusively for educational

27         purposes; providing an effective date.

28

29  Be It Enacted by the Legislature of the State of Florida:

30

31


                                  1

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1         Section 1.  Short title.--This act may be referred to

  2  as the "Higher Educational Facilities Financing Act."

  3         Section 2.  Findings and declarations.--It is declared

  4  that for the benefit of the people of the state, the increase

  5  of their commerce, welfare, and prosperity, and the

  6  improvement of their health and living conditions, it is

  7  essential that this and future generations of youth be given

  8  the fullest opportunity to learn and to develop their

  9  intellectual and mental capacities; that it is essential for

10  private institutions of higher education in the state to be

11  provided with appropriate additional means to assist such

12  youth in achieving the required levels of learning and

13  development of their intellectual and mental capacities; that

14  it is the purpose of this act to provide a measure of

15  assistance and an alternative method enabling private

16  institutions of higher education of this state to provide the

17  facilities and structures that are sorely needed to accomplish

18  the purposes of this act; and that it is essential to provide

19  additional assistance to private institutions of higher

20  education by enabling those institutions to coordinate their

21  budgetary needs with the timing of receipt of tuition

22  revenues.

23         Section 3.  Definitions.--As used in this act, the

24  term:

25         (1)  "Authority" or "educational facilities authority"

26  means the public corporation created by this act.

27         (2)  "Real property" includes all lands, including

28  improvements and fixtures thereon, and any such property

29  appurtenant thereto, or used in connection therewith and every

30  estate, interest and right, legal or equitable, therein,

31  including terms for years and liens by way of judgment,


                                  2

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  mortgage, or otherwise and the indebtedness secured by such

  2  liens. This definition does not affect the classification of

  3  property as real property or tangible personal property for

  4  purposes of ad valorem taxation under chapters 192 and 193,

  5  Florida Statutes, or sales and use taxation under chapter 212,

  6  Florida Statutes.

  7         (3)  "Project" means a structure suitable for use as a

  8  dormitory or other housing facility, dining hall, student

  9  union, administration building, academic building, library,

10  laboratory, research facility, classroom, athletic facility,

11  health care facility, and maintenance, storage, or utility

12  facility, and other structures or facilities related thereto,

13  or required thereby, or required or useful for the instruction

14  of students, or the conducting of research, or the operation

15  of an institution of higher education, including parking and

16  other facilities or structures, essential for the orderly

17  conduct of an institution of higher education and shall also

18  include equipment and machinery and other similar items

19  necessary for the operation of a particular facility or

20  structure in the manner for which its use is intended, but the

21  term does not include such items as books, fuel, supplies, or

22  other items that are customarily considered to result in a

23  current operating charge. The term also includes a loan in

24  anticipation of tuition revenues by a private institution of

25  higher education.

26         (4)  "Cost," as applied to a project or any portion

27  thereof financed under this act, embraces all or any part of

28  the cost of construction and acquisition of all lands,

29  structures, real or personal property, rights, rights-of-way,

30  franchises, easements, and interests acquired or used for a

31  project, the cost of demolishing or removing any buildings or


                                  3

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  structures on land so acquired, including the cost of

  2  acquiring any lands to which the buildings or structures may

  3  be removed, the cost of all machinery and equipment, financing

  4  charges, interest before, during, and for a period of 30

  5  months after completion of the construction, provisions for

  6  working capital, reserves for principal, interest and rebate,

  7  and for extensions, enlargements, additions and improvements,

  8  cost of engineering, financial and legal services, plans,

  9  specifications, studies, surveys, estimates of cost and of

10  revenues, administrative expenses, expenses necessary to

11  determining the feasibility or practicability of constructing

12  the project and other expenses as may be necessary to the

13  construction and acquisition of the project, the financing of

14  the construction and acquisition and the placing of the

15  project in operation. In the case of a loan in anticipation of

16  tuition revenues, the term "cost" means the amount of the loan

17  in anticipation of revenues which does not exceed the amount

18  of tuition revenues anticipated to be received by the

19  borrowing institution of higher education in the 1-year period

20  following the date of the loan, plus costs related to the

21  issuance of the loans, or bonds, the proceeds of which fund

22  the loans, and any related cost of debt service reserve funds

23  and rebate associated therewith.

24         (5)  "Bond" or "revenue bond" means a revenue bond of

25  the authority issued under this act, including a revenue

26  refunding bond, notwithstanding that it may be secured by

27  mortgage or the full faith and credit of a participating

28  institution of higher education or any other lawfully pledged

29  security of a participating institution of higher education.

30         (6)  "Institution of higher education" means an

31  educational institution that by virtue of law or charter is a


                                  4

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  nonprofit educational institution empowered to provide a

  2  project of education beyond the high school level; is not

  3  owned or controlled by the state or any political subdivision,

  4  agency, instrumentality, district, or municipality of the

  5  state; and otherwise meets the requirements of section 196.012

  6  (5), Florida Statutes.

  7         (7)  "Participating institution" means an institution

  8  of higher education that undertakes the financing and

  9  construction or acquisition of a project or undertakes the

10  refunding or refinancing of obligations or of a mortgage or of

11  advances as provided in and permitted by this act.

12         (8)  "Loan in anticipation of tuition revenues" means a

13  loan to an institution of higher education under circumstances

14  in which tuition revenues anticipated to be received by the

15  institution in any budget year are estimated to be

16  insufficient at any time during the budget year to pay the

17  operating expenses or other obligations of the institution in

18  accordance with the budget of the institution.

19         Section 4.  Creation of Higher Educational Facilities

20  Financing Authority.--

21         (1)  There is created a public body corporate and

22  politic to be known as the Higher Educational Facilities

23  Financing Authority. The authority is constituted as a public

24  instrumentality and the exercise by the authority of the

25  powers conferred by this act is considered to be the

26  performance of an essential public function. Chapters 119 and

27  286, Florida Statutes, shall apply to the authority.

28         (2)  The authority shall consist of five members to be

29  appointed by the Governor, subject to confirmation by the

30  Senate. One member shall be a trustee, director, officer, or

31  employee of an institution of higher education. Of the members


                                  5

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  first appointed, one shall serve for 1 year, one for 2 years,

  2  one for 3 years, one for 4 years, and one for 5 years, and in

  3  each case until his or her successor is appointed and has

  4  qualified. Thereafter, the Governor shall appoint for terms of

  5  5 years each a member or members to succeed those whose terms

  6  expire. The Governor shall fill any vacancy for an unexpired

  7  term. A member of the authority is eligible for reappointment.

  8  Any member of the authority may be removed by the Governor for

  9  misfeasance, malfeasance, or willful neglect of duty. Each

10  member of the authority before entering upon his or her duties

11  shall take and subscribe to the oath or affirmation required

12  by the State Constitution. A record of each oath must be filed

13  in the office of the Department of State and with the

14  authority.

15         (3)  The authority shall annually elect one of its

16  members as chair and one as vice chair, and shall also appoint

17  an executive director who is not a member of the authority and

18  who serves at the pleasure of the authority and receives

19  compensation as fixed by the authority.  The duties of the

20  executive director may be discharged under a contract with the

21  Independent Colleges and Universities of Florida, a

22  not-for-profit corporation representing the independent

23  colleges and universities of the state, or any successor

24  corporation or other such entity providing similar

25  representation, chosen by the authority, or an agency or other

26  entity representing independent colleges and universities

27  providing such services, in which case the entity shall

28  designate a person to perform those duties.

29         (4)  The executive director shall keep a record of the

30  proceedings of the authority and shall be custodian of all

31  books, documents, and papers filed with the authority and of


                                  6

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  the minute book or journal of the authority and of its

  2  official seal. He or she may cause copies to be made of all

  3  minutes and other records and documents of the authority and

  4  may give certificates under the official seal of the authority

  5  to the effect that the copies are true copies, and all persons

  6  dealing with the authority may rely upon the certificates.

  7         (5)  A majority of the members of the authority

  8  constitutes a quorum, and the affirmative vote of a majority

  9  of the members present at a meeting of the authority is

10  necessary for any action taken by the authority.  A vacancy in

11  the membership of the authority may not impair the right of a

12  quorum to exercise all the rights and perform all the duties

13  of the authority. Any action taken by the authority under this

14  act may be authorized by resolution at any regular or special

15  meeting, and each resolution shall take effect immediately and

16  need not be published or posted.

17         (6)  The members of the authority shall receive no

18  compensation for the performance of their duties, but each

19  member shall be paid his or her necessary expenses incurred

20  while engaged in the performance of his or her duties.

21         (7)  The authority is assigned to the Department of

22  Education for administrative purposes.

23         Section 5.  Powers of authority.--The purpose of the

24  authority is to assist institutions of higher education in the

25  construction, financing, and refinancing of projects

26  throughout the state and for this purpose the authority may:

27         (1)  Exercise all powers granted to corporations under

28  the Florida Business Corporation Act, chapter 607, Florida

29  Statutes.

30

31


                                  7

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1         (2)  Have perpetual succession as a body politic and

  2  corporate and adopt bylaws for the regulation of its affairs

  3  and the conduct of its business.

  4         (3)  Adopt an official seal and alter the same at its

  5  pleasure.

  6         (4)  Maintain an office at any place in the state that

  7  it may designate.

  8         (5)  Sue and be sued in its own name, and plead and be

  9  impleaded.

10         (6)  Make and execute financing agreements, leases, as

11  lessee or as lessor, contracts, deeds, and other instruments

12  necessary or convenient in the exercise of the powers and

13  functions of the authority under this act, including contracts

14  with persons, firms, corporations, federal and state agencies,

15  and other authorities, which state agencies and other

16  authorities are hereby authorized to enter into contracts and

17  otherwise cooperate with the authority to facilitate the

18  financing, construction, leasing, or sale of any project or

19  the institution of any program; engage in sale-leaseback,

20  lease-purchase, lease-leaseback, or other undertakings and

21  provide for the sale of certificates of participation incident

22  thereto; enter into interlocal agreements in the manner

23  provided in section 163.01, Florida Statutes.

24         (7)  Determine the location and character of any

25  project to be financed under this act and may:

26         (a)  Construct, reconstruct, maintain, repair, operate,

27  lease as lessee or lessor, and regulate the project;

28         (b)  Enter into contracts for any of those purposes;

29         (c)  Enter into contracts for the management and

30  operation of a project; and

31


                                  8

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1         (d)  Designate a participating institution of higher

  2  education as its agent to determine the location and character

  3  of a project undertaken by a participating institution of

  4  higher education under this act and, as the agent of the

  5  authority, construct, reconstruct, maintain, repair, operate,

  6  own, lease as lessee or lessor, and regulate the project, and,

  7  as the agent of the authority, enter into contracts for any of

  8  those purposes, including contracts for the management and

  9  operation of the project.

10         (8)  Issue bonds, bond anticipation notes, and other

11  obligations of the authority for any of its corporate

12  purposes, including the providing of funds to pay all or any

13  part of the cost of any project, and to fund or refund the

14  cost of any project as provided in this act.

15         (9)  Generally fix and revise and charge and collect

16  rates, rents, fees, and charges for the use of and for the

17  services furnished or to be furnished by a project or any

18  portion thereof and to contract with any person, partnership,

19  association, or corporation or other body public or private in

20  respect thereof.

21         (10)  Establish rules and regulations for the use of a

22  project or any portion thereof and designate a participating

23  institution of higher education as its agent to establish

24  rules and regulations for the use of a project undertaken by

25  the participating institution of higher education.

26         (11)  Employ consulting engineers, architects,

27  attorneys, accountants, construction and financial experts,

28  superintendents, managers, and other employees and agents as

29  may be necessary in its judgment, and fix their compensation.

30         (12)  Receive and accept from any public agency loans

31  or grants for or in aid of the construction of a project or


                                  9

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  any portion thereof, and receive and accept loans, grants,

  2  aid, or contributions from any source of either money,

  3  property, labor, or other things of value, to be held, used,

  4  and applied only for the purposes for which the loans, grants,

  5  aid, and contributions are made.

  6         (13)  Mortgage any project and the site thereof for the

  7  benefit of the holders of revenue bonds issued to finance

  8  projects or those providing credit for that purpose.

  9         (14)  Make loans to any participating institution of

10  higher education for the cost of a project, including a loan

11  in anticipation of tuition revenues, in accordance with an

12  agreement between the authority and the participating

13  institution of higher education; but no loan may exceed the

14  total cost of the project as determined by the participating

15  institution of higher education and approved by the authority.

16         (15)  Make loans to a participating institution of

17  higher education to refund outstanding obligations, mortgages,

18  or advances issued, made, or given by the participating

19  institution of higher education for the cost of a project.

20         (16)  Charge to and equitably apportion among

21  participating institutions of higher education its

22  administrative costs and expenses incurred in the exercise of

23  the powers and duties conferred by this act.

24         (17)  Contract with an entity representing independent

25  colleges and universities as its agent to assist the authority

26  in screening applications of institutions of higher education

27  for loans under this act and receive any recommendations the

28  entity may make.

29         (18)  Do all things necessary or convenient to carry

30  out the purposes of this act.

31


                                  10

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1         Section 6.  Payment of expenses.--All expenses incurred

  2  in carrying out this act are payable solely from funds

  3  provided under the authority of this act, and no liability or

  4  obligation may be incurred by the authority beyond the extent

  5  to which moneys have been provided under this act.

  6         Section 7.  Acquisition of real property.--The

  7  authority may directly, or by and through a participating

  8  institution of higher education as its agent, acquire by

  9  purchase or lease solely from funds provided under this act,

10  or by gift or devise, any lands, structures, property, real or

11  personal, rights, rights-of-way, franchises, easements, and

12  other interests in lands, including lands lying underwater,

13  and riparian rights, which are located within or outside the

14  state as it may consider necessary or convenient for the

15  construction or operation of a project, upon terms and at

16  prices as are considered by it to be reasonable and that can

17  be agreed upon between it and the owner thereof, and to take

18  title thereto in the name of the authority or in the name of a

19  participating institution of higher education as its agent or

20  as an owner and borrower.

21         Section 8.  Conveyance of title or interest to

22  participating institutions.--When the principal of and

23  interest on revenue bonds of the authority issued to finance

24  the cost of a particular project or projects at a

25  participating institution of higher education, including any

26  revenue refunding bonds issued to refund and refinance the

27  revenue bonds, have been fully paid and retired, or when

28  adequate provision has been made to pay fully and retire them,

29  and all other conditions of the resolution or trust agreement

30  authorizing and securing the revenue bonds have been satisfied

31  and the lien of the resolution or trust agreement has been


                                  11

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  released in accordance with the provisions thereof, the

  2  authority shall promptly execute deeds and conveyances

  3  necessary and required to convey title to the project or

  4  projects to the participating institution of higher education,

  5  free and clear of all liens and encumbrances.

  6         Section 9.  Criteria and requirements.--In undertaking

  7  any project under this act, the authority shall be guided by

  8  and shall observe the following criteria and requirements;

  9  however, the determination of the authority as to compliance

10  with the criteria and requirements is final and conclusive:

11         (1)  The project, in the determination of the

12  authority, is appropriate to the needs and circumstances of,

13  and shall make a significant contribution to the purposes of,

14  the authority and this act as set forth in the findings and

15  declarations, and shall serve a public purpose by advancing

16  the prosperity and general welfare of the state and its

17  people.

18         (2)  A financing agreement for a project may not be

19  entered into with a participating institution that is not

20  financially responsible and fully capable of and willing to

21  fulfill its obligations under the financing agreement,

22  including the obligations to make payments in the amounts and

23  at the times required; to operate, repair, and maintain at its

24  own expense the project owned or leased; and to serve the

25  purposes of this act and any other responsibilities that may

26  be imposed under the financing agreement. In determining the

27  financial responsibility of the participating institution,

28  consideration must be given to the party's ratio of current

29  assets to current liabilities; net worth; endowments; pledges;

30  earning trends; coverage of all fixed charges; the nature of

31  the project involved; its inherent stability; any guarantee of


                                  12

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  the obligations by some other financially responsible

  2  corporation, firm, or person; means by which the bonds are to

  3  be marketed to the public; and other factors determinative of

  4  the capability of the participating institution, financially

  5  and otherwise, to fulfill its obligations consistently with

  6  the purposes of this act.  In making findings and

  7  determinations, the authority may rely upon the

  8  recommendations of the entity representing independent

  9  colleges and universities.

10         (3)  Adequate provision must be made for the operation,

11  repair, and maintenance of the project at the expense of the

12  owner or lessee and for the payment of principal of and

13  interest on the bonds.

14         (4)  The costs to be paid from the proceeds of the

15  bonds are costs of a project within the meaning of this act,

16  except for payments included in the purposes for which revenue

17  refunding bonds may be issued under this act.

18         Section 10.  Approval required to issue bonds.--The

19  authority is created for the purpose of promoting higher

20  education and issuing bonds on behalf of the state, and the

21  Governor may approve any bonds issued by the authority which

22  require approval under federal law.

23         Section 11.  Agreements of sale, lease, or loan.--

24         (1)  A project financed under this act may not be

25  operated by the authority or any other governmental agency,

26  except that the authority may temporarily operate or cause to

27  be operated all or any part of a project to protect its

28  interest therein, pending any leasing or sale of the project.

29  A project acquired or constructed by the authority, unless

30  sold or contracted to be sold, must be leased to one or more

31  persons, firms, or private corporations for operation and


                                  13

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  maintenance in a manner as will effectuate the purposes of

  2  this act, under an agreement of sale, installment sale, lease

  3  or loan, in form and substance not inconsistent herewith. Any

  4  agreement may provide, among other provisions, that:

  5         (a)  The owner or lessee shall at its own expense

  6  operate, repair, and maintain the project sold or leased

  7  thereunder.

  8         (b)  The payments or rent payable under the agreement

  9  will in the aggregate be not less than an amount sufficient to

10  pay all of the interest, principal, and redemption premiums,

11  if any, on the bonds that will be issued by the authority to

12  pay the cost of the project sold or leased thereunder.

13         (c)  The owner or lessee shall pay all other costs

14  incurred by the authority in connection with the financing,

15  construction, and administration of the project sold or

16  leased, except as may be paid out of the proceeds of bonds or

17  otherwise, including, but without being limited to, insurance

18  costs, the cost of administering the bond resolution

19  authorizing the bonds and any trust agreement securing the

20  bonds, and the fees and expenses of the authority, trustees,

21  paying agents, attorneys, consultants, and others.

22         (d)  The term of an agreement will terminate not

23  earlier than the date on which all bonds and all other

24  obligations incurred by the authority in connection with the

25  project sold or leased thereunder are paid in full, including

26  interest, principal, and redemption premiums, if any, or on

27  which adequate funds for payment are deposited in trust.

28         (e)  The owner or lessee's obligation to pay payments

29  or rent is not subject to cancellation, termination, or

30  abatement until payment of the bonds or provision for payment

31  is made.


                                  14

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1         (2)  An agreement may contain additional provisions

  2  that in the determination of the authority are necessary to

  3  effectuate the purposes of this act, including provisions for

  4  extensions of the term and renewals of the sale or the lease

  5  and vesting in the lessee an option to purchase the project

  6  leased thereunder pursuant to any terms and conditions

  7  consistent with this act that are prescribed in the lease;

  8  however, except as is otherwise expressly stated in the

  9  agreement and except to provide for any contingencies

10  involving the damaging, destruction, or condemnation of the

11  project or any substantial portion thereof, an option to

12  purchase may not be exercised unless all bonds issued for the

13  project, including all principal, interest, and redemption

14  premiums, if any, and all other obligations incurred by the

15  authority in connection with the project have been paid in

16  full or sufficient funds have been deposited in trust or

17  sufficient arrangements have been made for payment. However,

18  the purchase price of the project may not be less than an

19  amount sufficient to pay in full all of the bonds, including

20  all principal, interest, and redemption premium, if any,

21  issued for the project then outstanding and all other

22  obligations incurred by the authority in connection with the

23  project.

24         Section 12.  Notes of authority.--The authority may

25  issue its negotiable notes for any corporate purpose and renew

26  any notes by the issuance of new notes, whether the notes to

27  be renewed have or have not matured. The authority may issue

28  notes partly to renew notes or to discharge other obligations

29  then outstanding and partly for any other purpose. The notes

30  may be authorized, sold, executed, and delivered in the same

31  manner as bonds. Any resolution authorizing notes of the


                                  15

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  authority or any issue thereof may contain any provisions that

  2  the authority is authorized to include in any resolution

  3  authorizing revenue bonds of the authority or any issue

  4  thereof, and the authority may include in any notes any terms,

  5  covenants, or conditions that it is authorized to include in

  6  any bonds. All the notes must be payable solely from the

  7  revenues of the project to be financed, subject only to any

  8  contractual rights of the holders of any of its notes or other

  9  obligations then outstanding.

10         Section 13.  Revenue bonds.--

11         (1)  The authority may issue its negotiable revenue

12  bonds for any corporate purpose, including the provision of

13  funds to pay all or any part of the cost of any project. In

14  anticipation of the sale of revenue bonds, the authority may

15  issue negotiable bond anticipation notes and may renew them

16  from time to time, but the maximum maturity of any note,

17  including renewals thereof, may not exceed 5 years from the

18  date of issue of the original note. The notes must be paid

19  from any revenues of the authority available therefor or of

20  the project and not otherwise pledged, or from the proceeds of

21  sale of the revenue bonds of the authority in anticipation of

22  which they were issued. The notes must be issued in the same

23  manner as the revenue bonds. The notes and the resolution

24  authorizing them may contain any provisions, conditions, or

25  limitations that a bond resolution of the authority may

26  contain.

27         (2)  The revenue bonds and notes of every issue must be

28  payable solely out of revenues of the authority, including the

29  provision of funds of the participating institution to pay all

30  or any part of the cost of any project, subject only to any

31  agreements with the holders of particular revenue bonds or


                                  16

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  notes pledging any particular revenues. Notwithstanding that

  2  revenue bonds and notes may be payable from a special fund,

  3  they are for all purposes negotiable instruments, subject only

  4  to the provisions of the revenue bonds and notes for

  5  registration.

  6         (3)  The revenue bonds may be issued as serial bonds or

  7  as term bonds; or the authority may issue bonds of both types.

  8  The revenue bonds must be authorized by resolution of the

  9  authority; must bear the date of issuance, the date of

10  maturity, not exceeding 50 years from issuance, and the

11  interest rate of the bonds, which may be a variable rate,

12  notwithstanding any limitation in other laws relating to

13  maximum interest rates; must be payable at a specified time;

14  must be in specified denominations; must be in specified form,

15  carry registration privileges, be executed in a specified

16  manner, be payable in lawful money of the United States at a

17  specified place, and be subject to the terms of redemption, as

18  the resolution may provide. The revenue bonds or notes may be

19  sold at public or private sale for the price the authority

20  determines. Pending preparation of the definitive bonds, the

21  authority may issue interim receipts or certificates that may

22  be exchanged for the definitive bonds. In case any officer

23  whose signature, or a facsimile of whose signature, appears on

24  any bonds or coupons ceases to be that officer before the

25  delivery of the bonds, the signature or facsimile is

26  nevertheless valid and sufficient for all purposes as if he or

27  she had remained in office until delivery. The authority may

28  also provide for the authentication of the bonds by a trustee

29  or fiscal agent. The bonds may be issued in coupon form or in

30  registered form, or both, as the authority may determine, and

31  provision may be made for the registration of any coupon bonds


                                  17

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  as to principal alone and also as to both principal and

  2  interest; for the reconversion into coupon bonds of any bonds

  3  registered as to both principal and interest; and for the

  4  interchange of registered and coupon bonds. The authority may

  5  sell the bonds either at public or private sale, and for the

  6  price it determines will best effectuate the purpose of this

  7  act, notwithstanding any limitation in other laws relating to

  8  the maximum interest rate permitted for bonds or limitations

  9  on the manner by which bonds are sold.

10         (4)  Any resolution authorizing any revenue bonds may

11  contain provisions, which are a part of the contract with the

12  holders of the revenue bonds to be authorized, as to:

13         (a)  Pledging of all or any part of the revenues of a

14  project or any revenue-producing contract made by the

15  authority with any individual, partnership, corporation, or

16  association or other body, public or private, to secure the

17  payment of the revenue bonds or of any particular issue of

18  revenue bonds, subject to any agreements with bondholders as

19  may then exist.

20         (b)  The rentals, fees, and other charges to be

21  charged, and the amounts to be raised in each year thereby,

22  and the use and disposition of the revenues.

23         (c)  The setting aside of reserves or sinking funds and

24  the regulation and disposition thereof.

25         (d)  Limitations on the right of the authority or its

26  agent to restrict and regulate the use of the project.

27         (e)  Limitations on the purpose to which the proceeds

28  of sale of any issue of revenue bonds then or thereafter to be

29  issued may be applied and pledging the proceeds to secure the

30  payment of the revenue bonds or any issue of the revenue

31  bonds.


                                  18

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1         (f)  Limitations on the issuance of additional bonds,

  2  the terms upon which additional bonds may be issued and

  3  secured, and the refunding of outstanding bonds.

  4         (g)  The procedure, if any, by which the terms of any

  5  contract with bondholders may be amended or abrogated,

  6  including the amount of bonds the holders of which must

  7  consent thereto and the manner in which consent may be given.

  8         (h)  Limitations on the amount of moneys derived from

  9  the project to be expended for operating, administrative, or

10  other expenses of the authority.

11         (i)  The acts or omissions to act that constitute a

12  default in the duties of the authority to holders of its

13  obligations and providing the rights and remedies of the

14  holders in the event of a default.

15         (j)  The mortgaging of or granting of a security

16  interest in the project or the site thereof for the purpose of

17  securing the bondholders.

18         (5)  Neither the members of the authority nor any

19  person executing the revenue bonds or notes is liable

20  personally on the revenue bonds or notes or is subject to any

21  personal liability or accountability by reason of the issuance

22  thereof.

23         (6)  The authority may purchase its bonds or notes out

24  of any funds available therefor. The authority may hold,

25  pledge, cancel, or resell the bonds, subject to and in

26  accordance with agreements with bondholders.

27         (7)  Incident to its powers to issue bonds and notes,

28  the authority may enter into interest rate swap agreements,

29  collars, caps, forward securities purchase agreements, delayed

30  delivery bond purchase agreements, and any other financial

31


                                  19

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  agreements considered to be in the best interest of the

  2  authority.

  3         (8)  Bonds may be issued under this act without

  4  obtaining, except as otherwise expressly provided in this act,

  5  the consent of any department, division, commission, board,

  6  body, bureau, or agency of the state or any local government,

  7  and without any other proceedings or the happening of any

  8  conditions or things other than those proceedings, conditions,

  9  or things that are specifically required by this act and the

10  resolution authorizing the issuance of bonds or the trust

11  agreement securing them.

12         Section 14.  Authority reporting requirement.--

13         (1)  Any authority that issues any revenue bonds under

14  this act shall supply the Division of Bond Finance of the

15  State Board of Administration with a copy of the report

16  required in s. 103 of the Internal Revenue Code of 1954, as

17  amended, at the times required under that section.

18         (2)  The Division of Bond Finance shall, upon receipt,

19  provide a copy of the information supplied under subsection

20  (1) to the Department of Education.

21         Section 15.  Covenants.--Any resolution authorizing the

22  issuance of bonds may contain any covenants the authority

23  considers advisable, including those provisions set forth in

24  section 13(4), and all those covenants constitute valid and

25  legally binding and enforceable contracts between the

26  authority and the bondholders, regardless of the time of

27  issuance thereof. The covenants may include, without

28  limitation, covenants concerning the disposition of the bond

29  proceeds, the use and disposition of project revenues, the

30  pledging of revenues and assessments, the obligations of the

31  authority with respect to the operation of the project and the


                                  20

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  maintenance of adequate project revenues, the issuance of

  2  additional bonds, the appointment, powers, and duties of

  3  trustees and receivers, the acquisition of outstanding bonds

  4  and obligations, restrictions on the establishing of competing

  5  projects or facilities, restrictions on the sale or disposal

  6  of the assets and property of the authority, the maintenance

  7  of deposits to assure the payment of the bonds issued

  8  hereunder, acceleration upon default, the execution of

  9  necessary instruments, the procedure for amending or

10  abrogating covenants with the bondholders, and any other

11  covenants considered necessary for the security of the

12  bondholders.

13         Section 16.  Validity of bonds; validation

14  proceedings.--Any bonds issued by the authority are

15  incontestable in the hands of bona fide purchasers or holders

16  for value and are not invalid because of any irregularity or

17  defect in the proceedings for the issue and sale thereof.

18  Before the issuance of any bonds, the authority shall publish

19  a notice at least once in a newspaper or newspapers published

20  or of general circulation in the county or counties in the

21  state in which the project will be located, stating the date

22  of adoption of the resolution authorizing the obligations, the

23  amount, maximum rate of interest, and maturity of the

24  obligations, and the purpose in general terms for which the

25  obligations are to be issued, and further stating that no

26  action or proceeding questioning the validity of the

27  obligations or of the proceedings authorizing the issuance

28  thereof, or of any covenants made therein, must be instituted

29  within 20 days after the first publication of the notice, or

30  the validity of the obligations, proceedings, and covenants

31  may not be thereafter questioned in any court. If no action or


                                  21

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  proceeding is instituted within the 20-day period, then the

  2  validity of the obligations, proceedings, and covenants is

  3  conclusive, and all persons or parties whatsoever are forever

  4  barred from questioning the validity of the obligations,

  5  proceedings, or covenants in any court. Notwithstanding this

  6  section, the bonds, notes, or other obligations issued by the

  7  authority and the obligations of any participating

  8  institution, or others providing credit for the obligations,

  9  who may be before the jurisdiction of the court, must be

10  validated in the manner provided by chapter 75, Florida

11  Statutes, and the jurisdiction of the action may be in the

12  jurisdiction of the circuit court where the project is to be

13  located, or in the discretion of the authority, in the county

14  seat of state government.

15         Section 17.  Act furnishes full authority for issuance

16  of bonds.--This act constitutes full authority for the

17  issuance of bonds and the exercise of the powers of the

18  authority provided in this act. Any bonds issued by the

19  authority are not secured by the full faith and credit of the

20  state and do not constitute an obligation, either general or

21  special, of the state.

22         Section 18.  Security of bondholders.--In the

23  discretion of the authority any revenue bonds issued under

24  this act may be secured by a trust agreement by and between

25  the authority and a corporate trustee or trustees, which may

26  be any trust company or bank having the powers of a trust

27  company within or without the state. The trust agreement or

28  the resolution providing for the issuance of revenue bonds may

29  pledge or assign the revenues to be received or the proceeds

30  of any contract or contracts pledged and may convey or

31  mortgage the project or any portion thereof. The trust


                                  22

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  agreement or resolution providing for the issuance of revenue

  2  bonds may contain provisions for protecting and enforcing the

  3  rights and remedies of the bondholders as may be reasonable

  4  and proper and not in violation of law, including particularly

  5  those provisions specifically authorized by this act to be

  6  included in any resolution of the authority authorizing

  7  revenue bonds. Any bank or trust company incorporated under

  8  the laws of this state or of any other state or the United

  9  States which may legally act as depository of the proceeds of

10  bonds or of revenues or other moneys or security may furnish

11  indemnifying bonds or pledge securities required by the

12  authority, if any. Any trust agreement may set forth the

13  rights and remedies of the bondholders and of the trustee or

14  trustees, and may restrict the individual right of action by

15  bondholders. In addition any trust agreement or resolution may

16  contain any other provisions the authority may consider

17  reasonable and proper for the security of the bondholders. All

18  expenses incurred in carrying out the trust agreement or

19  resolution may be treated as a part of the cost of the

20  operation of a project.

21         Section 19.  Payment of bonds.--Revenue bonds issued

22  under this act may not be considered to constitute a debt or

23  liability of the authority, any municipality, the state or any

24  political subdivision thereof or a pledge of the faith and

25  credit of the state, of the authority, of any municipality or

26  of any political subdivision, but are payable solely from

27  revenues of the authority pertaining to the project relating

28  to the issue; payments by participating institutions of higher

29  education, banks, insurance companies, or others under letters

30  of credit or purchase agreements; investment earnings from

31  funds or accounts maintained under the bond resolution;


                                  23

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  insurance proceeds; loan funding deposits; proceeds of sales

  2  of education loans; proceeds of refunding obligations; and

  3  fees, charges, and other revenues of the authority from the

  4  project.  All revenue bonds must contain on the face thereof a

  5  statement to the effect that neither the authority, any

  6  municipality, the state, nor any political subdivision thereof

  7  is obligated to pay the bond or the interest thereon except

  8  from revenues of the project or the portion thereof for which

  9  they are issued, and that neither the faith and credit nor the

10  taxing power of the authority, any municipality, the state, or

11  any political subdivision thereof is pledged to the payment of

12  the principal of or the interest on the bonds. The issuance of

13  revenue bonds under this act may not directly or indirectly or

14  contingently obligate the authority, any municipality, the

15  state, or any political subdivision thereof to levy or to

16  pledge any form of taxation therefor or to make any

17  appropriation for their payment.

18         Section 20.  Rates, rents, fees, and charges.--

19         (1)  The authority may fix, revise, charge, and collect

20  rates, rents, fees, and charges for the use of and for the

21  services furnished or to be furnished by each project and may

22  contract with any person, partnership, association or

23  corporation, or other body, public or private, in respect

24  thereof. The rates, rents, fees, and charges must be fixed and

25  adjusted in respect of the aggregate of rates, rents, fees,

26  and charges from the project so as to provide funds sufficient

27  with other revenues, if any:

28         (a)  To pay the cost of maintaining, repairing, and

29  operating the project and each portion thereof, to the extent

30  that the payment of the cost has not otherwise been adequately

31  provided for.


                                  24

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1         (b)  To pay the principal of and the interest on

  2  outstanding revenue bonds of the authority issued in respect

  3  of the project as the bonds become due and payable.

  4         (c)  To create and maintain reserves required or

  5  provided for in any resolution authorizing, or trust agreement

  6  securing, the revenue bonds of the authority. The rates,

  7  rents, fees, and charges are not subject to supervision or

  8  regulation by any department, commission, board, body, bureau,

  9  or agency of this state other than the authority.

10         (2)  A sufficient amount of the revenues derived in

11  respect of a project, except the part of the revenues

12  necessary to pay the cost of maintenance, repair, and

13  operation and to provide reserves and for renewals,

14  replacements, extensions, enlargements, and improvements

15  provided for in the resolution authorizing the issuance of any

16  revenue bonds of the authority or in the trust agreement

17  securing them must be set aside at regular intervals as

18  provided in the resolution or trust agreement in a sinking or

19  other similar fund that is hereby pledged to, and charged

20  with, the payment of the principal of and the interest on the

21  revenue bonds as they become due and the redemption price or

22  the purchase price of bonds retired by call or purchase as

23  therein provided. The pledge must be valid and binding from

24  the time when the pledge is made; the rates, rents, fees,

25  charges, and other revenues or other moneys so pledged and

26  thereafter received by the authority must immediately be

27  subject to the lien of the pledge without any physical

28  delivery thereof or further act, and the lien of any pledge is

29  valid and binding as against all parties having claims of any

30  kind in tort, contract, or otherwise against the authority,

31  irrespective of whether the parties have notice thereof.


                                  25

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  Neither the resolution nor any trust agreement by which a

  2  pledge is created need be filed or recorded except in the

  3  records of the authority.

  4         (3)  The use and disposition of moneys to the credit of

  5  a sinking or other similar fund must be subject to the

  6  resolution authorizing the issuance of the bonds or of the

  7  trust agreement. Except as may otherwise be provided in the

  8  resolution or the trust agreement, the sinking or other

  9  similar fund must be a fund for all revenue bonds issued to

10  finance projects at a particular institution for higher

11  education without distinction or priority of one over another.

12  However, the authority in any resolution or trust agreement

13  may provide that the sinking or other similar fund be the fund

14  for a particular project at an institution for higher

15  education and for the revenue bonds issued to finance a

16  particular project, and may, additionally, permit and provide

17  for the issuance of revenue bonds having a subordinate lien in

18  respect of the security authorized to other revenue bonds of

19  the authority, and, in such case, the authority may create

20  separate sinking or other similar funds in respect of the

21  subordinate lien bonds.

22         Section 21.  Trust funds.--All moneys received under

23  the authority of this act, whether as proceeds from the sale

24  of bonds or as revenues, are considered to be trust funds to

25  be held and applied solely as provided in this act. Any

26  officer with whom, or any bank or trust company with which,

27  the moneys are deposited shall act as trustee of the moneys

28  and shall hold and apply them for the purposes of this act,

29  subject to the regulations this act and the resolution

30  authorizing the bonds of any issue or the trust agreement

31  securing the bonds provides.


                                  26

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1         Section 22.  Remedies of bondholders.--Any holder of

  2  revenue bonds issued under this act or any of the coupons

  3  appertaining thereto, and the trustee or trustees under any

  4  trust agreement, except to the extent the rights given may be

  5  restricted by any resolution authorizing the issuance of, or

  6  any such trust agreement securing, the bonds, may, either at

  7  law or in equity, by suit, action, mandamus, or other

  8  proceedings, protect and enforce any rights under the laws of

  9  the state or granted hereunder or under the resolution or

10  trust agreement, and may enforce and compel the performance of

11  all duties required by this act or by the resolution or trust

12  agreement to be performed by the authority or by any officer,

13  employee, or agent thereof, including the fixing, charging,

14  and collecting of the rates, rents, fees, and charges

15  authorized and required by the provisions of the resolution or

16  trust agreement to be fixed, established, and collected.

17         Section 23.  Tax exemption.--The exercise of the powers

18  granted by this act will be in all respects for the benefit of

19  the people of this state, for the increase of their commerce,

20  education, welfare, and prosperity, and for the improvement of

21  their health and living conditions, and because the operation

22  and maintenance of a project by the authority or its agent or

23  the owner or lessee thereof, as authorized in this act, will

24  constitute the performance of an essential public function,

25  neither the authority nor its agent is required to pay any

26  taxes or assessments upon or in respect of a project or any

27  property acquired or used by the authority or its agent under

28  the provisions of this act or upon the income therefrom, and

29  any bonds issued under this act, any security therefor, their

30  transfer, and the income therefrom, including any profit made

31  on the sale thereof, and all notes, mortgages, security


                                  27

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  agreements, letters of credit, or other instruments that arise

  2  out of or are given to secure the repayment of bonds issued in

  3  connection with a project financed under this part, shall at

  4  all times be free from taxation by the state or any local

  5  unit, political subdivision, or other instrumentality of the

  6  state. The exemption granted by this section is not applicable

  7  to any tax imposed by chapter 220, Florida Statutes, on

  8  interest, income, or profits or on debt obligations owned by

  9  corporations.

10         Section 24.  Refunding bonds.--

11         (1)  The authority may provide for the issuance of

12  revenue bonds of the authority for the purpose of refunding

13  any revenue bonds of the authority then outstanding, including

14  the payment of any redemption premium thereon and any interest

15  accrued or to accrue to the earliest or subsequent date of

16  redemption, purchase, or maturity of the revenue bonds, and,

17  if considered advisable by the authority, for the additional

18  purpose of paying all or any part of the cost of constructing

19  and acquiring additions, improvements, extensions, or

20  enlargements of a project or any portion thereof.

21         (2)  The proceeds of any revenue bonds issued for the

22  purpose of refunding outstanding revenue bonds may be applied

23  to the purchase or retirement at maturity or redemption of the

24  outstanding revenue bonds either on their earliest or any

25  subsequent redemption date or upon the purchase or at the

26  maturity thereof and may, pending the application, be placed

27  in escrow to be applied to the purchase or retirement at

28  maturity or redemption on the date as may be determined by the

29  authority.

30         (3)  Any escrowed proceeds, pending use, may be

31  invested and reinvested in direct obligations of the United


                                  28

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  States of America, or in certificates of deposit or time

  2  deposits secured by direct obligations of the United States,

  3  or other investments as the resolution authorizing the

  4  issuance and sale of the bonds, or the trust agreement, may

  5  provide, maturing at the time or times as shall be appropriate

  6  to assure the prompt payment, as to principal, interest, and

  7  redemption premium, if any, of the outstanding revenue bonds

  8  to be so refunded. The interest, income, and profits, if any,

  9  earned or realized on any such investment may also be applied

10  to the payment of the outstanding revenue bonds to be so

11  refunded. After the terms of the escrow have been fully

12  satisfied and carried out, any balance of the proceeds and

13  interest, income and profits, if any, earned or realized on

14  the investments thereof may be returned to the authority or to

15  the participating institution for use by it in any lawful

16  manner.

17         (4)  The portion of the proceeds of any revenue bonds

18  issued for the additional purpose of paying all or any part of

19  the cost of constructing and acquiring additions,

20  improvements, extensions, or enlargements of a project may be

21  invested and reinvested in direct obligations of the United

22  States, or in certificates of deposit or time deposits secured

23  by direct obligations of the United States, or other

24  investments as the resolution authorizing the issuance and

25  sale of the bonds, or the trust agreement, may provide,

26  maturing not later than the time or times when the proceeds

27  will be needed for the purpose of paying all or any part of

28  the cost. The interest, income, and profits, if any, earned or

29  realized on the investment may be applied to the payment of

30  all or any part of the cost or may be used by the authority or

31  the participating institution in any lawful manner.


                                  29

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1         (5)  All refunding revenue bonds are subject to this

  2  act in the same manner and to the same extent as other revenue

  3  bonds issued under this act.

  4         Section 25.  Legal investment.--Bonds issued by the

  5  authority under this act are made securities in which all

  6  public officers and public bodies of the state and its

  7  political subdivisions, all insurance companies, trust

  8  companies, banking associations, investment companies,

  9  executors, administrators, trustees, and other fiduciaries may

10  properly and legally invest funds, including capital in their

11  control or belonging to them. The bonds are made securities

12  that may properly and legally be deposited with and received

13  by any state or municipal officer or any agency or political

14  subdivision of the state for any purpose for which the deposit

15  of bonds or obligations of the state is now or may hereafter

16  be authorized by law.

17         Section 26.  Reports.--Within the first 90 days of each

18  calendar year, the authority shall make a report to the

19  Department of Education of its activities for the preceding

20  calendar year. Each report must set forth a complete operating

21  and financial statement covering its operations during the

22  year. The authority shall cause an audit of its books and

23  accounts to be made at least once each year by a certified

24  public accountant and the cost of the audit shall be paid by

25  the authority from funds available to it under this act.

26         Section 27.  State agreement.--The state agrees with

27  the holders of any obligations issued under this act, and with

28  those parties who may enter into contracts with the authority

29  under this act, that the state will not limit or alter the

30  rights vested in the authority until the obligations, together

31  with the interest thereon, are fully met and discharged and


                                  30

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  the contracts are fully performed on the part of the

  2  authority. However, this act does not preclude any limitation

  3  or alteration if adequate provision is made by law for the

  4  protection of the holders of the obligations of the authority

  5  or those entering into contracts with the authority. The

  6  authority is authorized to include this pledge and undertaking

  7  for the state in any obligations or contracts.

  8         Section 28.  Alternative means.--This act provides an

  9  additional and alternative method for the doing of the things

10  authorized, and shall be regarded as supplemental and

11  additional to powers conferred by other laws; but the issuance

12  of notes, certificates of participation, revenue bonds, and

13  revenue refunding bonds under this act need not comply with

14  the requirements of any other law applicable to the issuance

15  of bonds or such obligations. Except as otherwise expressly

16  provided in this act, the powers granted to the authority

17  under this act are not subject to the supervision or

18  regulation of, or require the approval or consent of, any

19  municipality or political subdivision or any commission,

20  board, body, bureau, official, or agency thereof or of the

21  state.

22         Section 29.  Liberal construction.--Sections 1 through

23  30 of this act shall be liberally construed to effectively

24  carry out their purpose.

25         Section 30.  Act controlling.--To the extent that

26  sections 1 through 30 of this act are inconsistent with any

27  general statute or special act or parts thereof, sections 1

28  through 30 control.

29         Section 31.  Subsection (5) of section 196.012, Florida

30  Statutes, is amended to read:

31


                                  31

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1         196.012  Definitions.--For the purpose of this chapter,

  2  the following terms are defined as follows, except where the

  3  context clearly indicates otherwise:

  4         (5)  "Educational institution" means a federal, state,

  5  parochial, church, or private school, college, or university

  6  conducting regular classes and courses of study required for

  7  eligibility to certification by, accreditation to, or

  8  membership in the State Department of Education of Florida,

  9  Southern Association of Colleges and Schools, or the Florida

10  Council of Independent Schools; a nonprofit private school the

11  principal activity of which is conducting regular classes and

12  courses of study accepted for continuing postgraduate dental

13  education credit by a board of the Division of Medical Quality

14  Assurance; educational direct-support organizations created

15  pursuant to ss. 229.8021, 240.299, and 240.331; and facilities

16  located on the property of eligible entities which will become

17  owned by those entities on a date certain; and institutions of

18  higher education as defined under and participating in the

19  Higher Educational Facilities Financing Act created pursuant

20  to chapter 2000-   , Laws of Florida.

21         Section 32.  Section 196.198, Florida Statutes, is

22  amended to read:

23         196.198  Educational property exemption.--Educational

24  institutions within this state and their property used by them

25  or by any other exempt entity or educational institution

26  exclusively for educational purposes shall be exempt from

27  taxation.  Sheltered workshops providing rehabilitation and

28  retraining of disabled individuals and exempted by a

29  certificate under s. (d) of the federal Fair Labor Standards

30  Act of 1938, as amended, are declared wholly educational in

31  purpose and shall be exempted from certification,


                                  32

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  accreditation, and membership requirements set forth in s.

  2  196.012.  Those portions of property of college fraternities

  3  and sororities certified by the president of the college or

  4  university to the appropriate property appraiser as being

  5  essential to the educational process, shall be exempt from ad

  6  valorem taxation. The use of property by public fairs and

  7  expositions chartered by chapter 616 is presumed to be an

  8  educational use of such property and shall be exempt from ad

  9  valorem taxation to the extent of such use.  Property used

10  exclusively for educational purposes shall be deemed owned by

11  an educational institution if the entity owning 100 percent of

12  the educational institution is owned by the identical persons

13  who own the property. If legal title to property is held by a

14  governmental agency that leases the property to a lessee, the

15  property shall be deemed to be owned by the governmental

16  agency and used exclusively for educational purposes if the

17  governmental agency continues to use such property exclusively

18  for educational purposes pursuant to a sublease or other

19  contractual agreement with that lessee. If the title to land

20  is held by the trustee of an irrevocable inter vivos trust and

21  if the trust grantor owns 100 percent of the entity that owns

22  an educational institution that is using the land exclusively

23  for educational purposes, the land is deemed to be property

24  owned by the educational institution for purposes of this

25  exemption. Property owned by an educational institution shall

26  be deemed to be used for an educational purpose if the

27  institution has taken affirmative steps to prepare the

28  property for educational use.  Affirmative steps means

29  environmental or land use permitting activities, creation of

30  architectural plans or schematic drawings, land clearing or

31  site preparation, construction or renovation activities, or


                                  33

CODING: Words stricken are deletions; words underlined are additions.






    CS for CS for SB 1450                   Second Engrossed (ntc)



  1  other similar activities that demonstrate commitment of the

  2  property to an educational use.

  3         Section 33.  Sections 1 through 30 of this act shall

  4  take effect upon becoming a law.

  5

  6

  7

  8

  9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31


                                  34