HB 0319, Engrossed 1 2003
1	A bill to be entitled
2	An act relating to state universities; creating s.
3	1001.70, F.S.; establishing the Board of Governors;
4	providing membership and terms of office; amending s.
5	1001.71, F.S.; revising membership of university boards of
6	trustees and terms of office; creating s. 1010.10, F.S.;
7	creating the Florida Uniform Management of Institutional
8	Funds Act; providing definitions; providing for
9	expenditure of endowment funds by a governing board;
10	providing for a standard of conduct; providing investment
11	authority; providing for delegation of investment
12	management; providing for investment costs; providing for
13	release of restrictions on use or investment; providing
14	for uniformity of application and construction; providing
15	for retroactive effect; amending s. 1011.94, F.S.,
16	relating to the Trust Fund for University Major Gifts;
17	revising provisions relating to use of proceeds; replacing
18	references to State Board of Education with Board of
19	Governors; providing limitations on matching funds;
20	amending s. 17.076, F.S.; providing an exception to a
21	public records exemption; amending s. 20.555, F.S.;
22	deleting reference to the Board of Regents; amending s.
23	110.161, F.S.; including employees of state universities
24	in the definition of "employee" for purposes of the pretax
25	benefits program; amending s. 112.215, F.S.; including
26	employees of state university boards of trustees in the
27	definition of "employee" for purposes of the deferred
28	compensation program; amending s. 287.064, F.S.;
29	authorizing state universities to continue to participate
30	in the consolidated equipment financing program; amending
31	s. 440.38, F.S.; including state universities as self-
32	insurers for purposes of workers' compensation; amending
33	s. 1001.74, F.S.; adding a cross reference relating to
34	pretax benefits for state university employees; amending
35	s. 1004.24, F.S.; deleting obsolete reference to postaudit
36	of financial accounts; providing for financial audit
37	pursuant to s. 11.45, F.S.; amending s. 1004.26, F.S.;
38	conforming university oversight of student government;
39	amending s. 1004.445, F.S.; deleting obsolete reference to
40	postaudit of financial accounts; providing for financial
41	audit pursuant to s. 11.45, F.S.; amending s. 1009.21,
42	F.S.; revising provisions relating to determination of
43	resident status for tuition purposes; providing for
44	reclassification; providing for classification of certain
45	graduate teaching assistants or graduate research
46	assistants; amending s. 1009.24, F.S.; revising provisions
47	relating to undergraduate tuition and fees; authorizing a
48	nonrefundable admissions deposit; creating 1012.975, F.S.;
49	defining the terms "cash-equivalent compensation," "public
50	funds," and "remuneration"; limiting the annual
51	remuneration of a state university president to $225,000
52	from public funds; providing certain limitations on
53	benefits for state university presidents under the Florida
54	Retirement System; authorizing a party to provide cash or
55	cash-equivalent compensation in excess of annual limit
56	from nonpublic funds; eliminating any state obligation to
57	provide cash or cash-equivalent compensation for state
58	university presidents under certain circumstances;
59	providing effective dates.
60
61	Be It Enacted by the Legislature of the State of Florida:
62
63	Section 1. Section 1001.70, Florida Statutes, is created
64	to read:
65	1001.70 Board of Governors.--Pursuant to s. 7(d), Art. IX
66	of the State Constitution, the Board of Governors is established
67	as a body corporate comprised of 17 members as follows: 14
68	citizen members appointed by the Governor subject to
69	confirmation by the Senate; the Commissioner of Education; the
70	chair of the advisory council of faculty senates or the
71	equivalent; and the president of the Florida student association
72	or the equivalent. The appointed members shall serve staggered
73	7-year terms. In order to achieve staggered terms, beginning
74	July 1, 2003, of the initial appointments, 4 members shall serve
75	2-year terms, 5 members shall serve 3-year terms, and 5 members
76	shall serve 7-year terms.
77	Section 2. Section 1001.71, Florida Statutes, is amended
78	to read:
79	1001.71 University boards of trustees; membership.--
80	(1) Pursuant to s. 7(c), Art. IX of the State
81	Constitution, each local constituent university shall be
82	administered by a university board of trustees comprised of 13
83	members as follows: 6 citizen members appointed by the Governor
84	subject to confirmation by the Senate; 5 citizen members
85	appointed by the Board of Governors subject to confirmation by
86	the Senate; the chair of the faculty senate or the equivalent;
87	and the president of the student body of the university. The
88	appointed members shall serve staggered 5-year terms. In order
89	to achieve staggered terms, beginning July 1, 2003, of the
90	initial appointments by the Governor, 2 members shall serve 2-
91	year terms, 3 members shall serve 3-year terms, and 1 member
92	shall serve a 5-year term and of the initial appointments by the
93	Board of Governors, 2 members shall serve 2-year terms, 2
94	members shall serve 3-year terms, and 1 member shall serve a 5-
95	year term.University boards of trustees shall be comprised of
96	12 members appointed by the Governor and confirmed by the Senate
97	in the regular legislative session immediately following his or
98	her appointment. In addition, the student body president elected
99	on the main campus of the university pursuant to s. 1004.26
100	shall serve ex officio as a voting member of his or her
101	university board of trustees.There shall be no state residency
102	requirement for university board members, but the Governor and
103	the Board of Governorsshall consider diversity and regional
104	representation.
105	(2) Members of the boards of trustees shall receive no
106	compensation but may be reimbursed for travel and per diem
107	expenses as provided in s. 112.061.
108	(3) The Governor may remove a trustee upon the
109	recommendation of the State Board of Education, or for cause.
110	(4) Boards of trustees' members shall be appointed for
111	staggered 4-year terms, and may be reappointed for additional
112	terms not to exceed 8 years of service.
113	(3)(5)Each board of trustees shall select its chair and
114	vice chair from the appointed members at its first regular
115	meeting after July 1. The chair shall serve for 2 years and may
116	be reselected for one additional consecutive term. The duties of
117	the chair shall include presiding at all meetings of the board
118	of trustees, calling special meetings of the board of trustees,
119	and attesting to actions of the board of trustees, and notifying
120	the Governor in writing whenever a board member fails to attend
121	three consecutive regular board meetings in any fiscal year,
122	which failure may be grounds for removal. The duty of the vice
123	chair is to act as chair during the absence or disability of the
124	chair.
125	(4)(6)The university president shall serve as executive
126	officer and corporate secretary of the board of trustees and
127	shall be responsible to the board of trustees for all operations
128	of the university and for setting the agenda for meetings of the
129	board of trustees in consultation with the chair.
130	Section 3. Effective upon this act becoming a law and
131	operating retroactively to January 7, 2003, section 1010.10,
132	Florida Statutes, is created to read:
133	1010.10 Florida Uniform Management of Institutional Funds
134	Act.--
135	(1) POPULAR NAME.--This section shall be known by the
136	popular name the "Florida Uniform Management of Institutional
137	Funds Act."
138	(2) DEFINITIONS.--As used in this section:
139	(a) "Endowment fund" means an institutional fund, or any
140	part thereof, not wholly expendable by the institution on a
141	current basis under the terms of the applicable gift instrument.
142	(b) "Governing board" means the body responsible for the
143	management of an institution or an institutional fund.
144	(c) "Institution" means an incorporated or unincorporated
145	organization organized and operated exclusively for the
146	advancement of educational purposes, or a governmental entity to
147	the extent that it holds funds exclusively for educational
148	purposes.
149	(d) "Institutional fund" means a fund held by an
150	institution for its exclusive use, benefit, or purposes. The
151	term excludes a fund held for an institution by a trustee that
152	is not an institution. The term also excludes a fund in which a
153	beneficiary that is not an institution has an interest other
154	than possible rights that could arise upon violation or failure
155	of the purposes of the fund.
156	(e) "Instrument" means a will, deed, grant, conveyance,
157	agreement, memorandum, electronic record, writing, or other
158	governing document, including the terms of any institutional
159	solicitations from which an institutional fund resulted, under
160	which property is transferred to or held by an institution as an
161	institutional fund.
162	(3) EXPENDITURE OF ENDOWMENT FUNDS.--
163	(a) A governing board may expend so much of an endowment
164	fund as the governing board determines to be prudent for the
165	uses and purposes for which the endowment fund is established,
166	consistent with the goal of conserving the purchasing power of
167	the endowment fund. In making its determination, the governing
168	board shall use reasonable care, skill, and caution in
169	considering the following:
170	1. Purposes of the institution.
171	2. Intent of the donors of the endowment fund.
172	3. Terms of the applicable instrument.
173	4. Long-term and short-term needs of the institution in
174	carrying out its purposes.
175	5. General economic conditions.
176	6. Possible effect of inflation or deflation.
177	7. Other resources of the institution.
178	8. Perpetuation of the endowment.
179
180	Expenditures made under this paragraph will be considered to be
181	prudent if the amount expended is consistent with the goal of
182	preserving the purchasing power of the endowment fund.
183	(b) A restriction upon the expenditure of an endowment
184	fund may not be implied from a designation of a gift as an
185	endowment, or from a direction or authorization in the
186	instrument to use only "income," "interest," "dividends," or
187	"rents, issues, or profits," or "to preserve the principal
188	intact," or words of similar import.
189	(c) The provisions of paragraph (a) shall not apply to an
190	instrument if the instrument so indicates by stating, "I direct
191	that the expenditure provision of paragraph (a) of subsection
192	(3) of the Florida Uniform Management of Institutional Funds Act
193	not apply to this gift" or words of similar import.
194	(d) This subsection does not limit the authority of a
195	governing board to expend funds as permitted under other law,
196	the terms of the instrument, or the charter of the institution.
197	(e) Except as otherwise provided, this subsection applies
198	to instruments executed or in effect before or after the
199	effective date of this section.
200	(4) STANDARD OF CONDUCT.--
201	(a) Members of a governing board shall invest and manage
202	an institutional fund as a prudent investor would by considering
203	the purposes, distribution requirements, and other circumstances
204	of the fund. In satisfying this standard, the governing board
205	shall exercise reasonable care, skill, and caution.
206	(b) A governing board's investment and management
207	decisions about individual assets shall be made not in isolation
208	but in the context of the institutional fund's portfolio of
209	investments as a whole and as a part of an overall investment
210	strategy having risk and return objectives reasonably suited to
211	the fund and to the institution.
212	(c) Among circumstances that a governing board shall
213	consider are:
214	1. Long-term and short-term needs of the institution in
215	carrying out its purposes.
216	2. Its present and anticipated financial resources.
217	3. General economic conditions.
218	4. Possible effect of inflation or deflation.
219	5. Expected tax consequences, if any, of investment
220	decisions or strategies.
221	6. The role that each investment or course of action plays
222	within the overall investment portfolio of the institutional
223	fund.
224	7. Expected total return from income and appreciation of
225	its investments.
226	8. Other resources of the institution.
227	9. Needs of the institution and the institutional fund for
228	liquidity, regularity of income, and preservation or
229	appreciation of capital.
230	10. An asset's special relationship or special value, if
231	any, to the purposes of the applicable gift instrument or to the
232	institution.
233	(d) A governing board shall make a reasonable effort to
234	verify the facts relevant to the investment and management of
235	institutional fund assets.
236	(e) A governing board shall diversify the investments of
237	an institutional fund unless the board reasonably determines
238	that, because of special circumstances, the purposes of the fund
239	are better served without diversifying.
240	(f) A governing board shall invest and manage the assets
241	of an institutional fund solely in the interest of the
242	institution.
243	(5) INVESTMENT AUTHORITY.--In addition to an investment
244	otherwise authorized by law or by the applicable gift
245	instrument, and without restriction to investments a fiduciary
246	may make, the governing board, subject to any specific
247	limitations set forth in the applicable gift instrument or in
248	the applicable law other than law relating to investments by a
249	fiduciary:
250	(a) Within a reasonable time after receiving property,
251	shall review the property and make and implement decisions
252	concerning the retention and disposition of the assets in order
253	to bring the portfolio of the institutional fund into compliance
254	with the purposes, terms, distribution requirements, and other
255	circumstances of the institution and with the requirements of
256	this section.
257	(b) May invest in any kind of property or type of
258	investment consistent with the standards of this section.
259	(c) May include all or any part of an institutional fund
260	in any pooled or common fund maintained by the institution.
261	(d) May invest all or any part of the institutional fund
262	in any other pooled or common fund available for investment,
263	including shares or interests in regulated investment companies,
264	mutual funds, common trust funds, investment partnerships, real
265	estate investment trusts, or similar organizations in which
266	funds are commingled and investment determinations are made by
267	persons other than the governing board.
268	(6) DELEGATION OF INVESTMENT MANAGEMENT.--
269	(a) Except as otherwise provided by applicable law
270	relating to governmental institutions or funds, a governing
271	board may delegate investment and management functions that a
272	prudent governing body could properly delegate under the
273	circumstances. A governing board shall exercise reasonable care,
274	skill, and caution in:
275	1. Selecting an agent.
276	2. Establishing the scope and terms of the delegation
277	consistent with the purposes of the institutional fund.
278	3. Periodically reviewing the agent's actions in order to
279	monitor the agent's performance and the agent's compliance with
280	the terms of the delegation.
281	(b) In performing a delegated function, an agent owes a
282	duty to the governing board to exercise reasonable care to
283	comply with the terms of the delegation.
284	(c) The members of a governing board who comply with the
285	requirements of paragraph (a) are not liable for the decisions
286	or actions of the agent to whom the function was delegated.
287	(d) By accepting the delegation of an investment or
288	management function from a governing board of an institution
289	that is subject to the laws of this state, an agent submits to
290	the jurisdiction of the courts of this state in all actions
291	arising from the delegation.
292	(7) INVESTMENT COSTS.--In investing and managing trust
293	assets, a governing board may only incur costs that are
294	appropriate and reasonable in relation to the assets and the
295	purposes of the institution.
296	(8) RELEASE OF RESTRICTIONS ON USE OR INVESTMENT.--
297	(a) With the written consent of the donor, a governing
298	board may release, in whole or in part, a restriction imposed by
299	the applicable instrument on the use or investment of an
300	institutional fund.
301	(b) If written consent of the donor cannot be obtained by
302	reason of the donor's death, disability, unavailability, or
303	impossibility of identification, a governing board may release,
304	in whole or in part, a restriction imposed by the applicable
305	instrument on the use or investment of an institutional fund if
306	the fund has a total value of less than $100,000 and if the
307	governing board, in its fiduciary judgment, concludes that the
308	value of the fund is insufficient to justify the cost of
309	administration as a separate institutional fund.
310	(c) If written consent of the donor cannot be obtained by
311	reason of the donor's death, disability, unavailability, or
312	impossibility of identification, a governing board may apply in
313	the name of the institution to the circuit court of the county
314	in which the institution is located for release of a restriction
315	imposed by the applicable instrument on the use or investment of
316	an institutional fund. The Attorney General shall be notified of
317	the application and shall be given an opportunity to be heard.
318	If the court finds that the restriction is unlawful,
319	impracticable, impossible to achieve, or wasteful, it may by
320	order release the restriction in whole or in part. A release
321	under this subsection may not change an endowment fund to a fund
322	that is not an endowment fund.
323	(d) A release under this subsection may not allow a fund
324	to be used for purposes other than the educational purposes of
325	the institution affected.
326	(e) This subsection does not limit the application of the
327	doctrine of cy pres.
328	(9) UNIFORMITY OF APPLICATION AND CONSTRUCTION.--This act
329	shall be so applied and construed as to effectuate its general
330	purpose to make uniform the law with respect to the subject of
331	this act among those states which enact it.
332	Section 4. Section 1011.94, Florida Statutes, is amended
333	to read:
334	1011.94 Trust Fund for University Major Gifts.--
335	(1) There is established a Trust Fund for University Major
336	Gifts. The purpose of the trust fund is to enable each
337	university and New College to provide donors with an incentive
338	in the form of matching grants for donations for the
339	establishment of permanent endowments and sales tax exemption
340	matching funds received pursuant to s. 212.08(5)(j), which must
341	be invested, with the proceeds of the investment used to support
342	university priorities as established by the university board of
343	trusteeslibraries and instruction and research programs, as
344	defined by the State Board of Education. All funds appropriated
345	for the challenge grants, new donors, major gifts, sales tax
346	exemption matching funds pursuant to s. 212.08(5)(j), or eminent
347	scholars program must be deposited into the trust fund and
348	invested pursuant to s. 18.125 until the Board of Governors
349	State Board of Educationallocates the funds to universities to
350	match private donations. Notwithstanding s. 216.301 and pursuant
351	to s. 216.351, any undisbursed balance remaining in the trust
352	fund and interest income accruing to the portion of the trust
353	fund which is not matched and distributed to universities must
354	remain in the trust fund and be used to increase the total funds
355	available for challenge grants. Funds deposited in the trust
356	fund for the sales tax exemption matching program authorized in
357	s. 212.08(5)(j), and interest earnings thereon, shall be
358	maintained in a separate account within the Trust Fund for
359	University Major Gifts, and may be used only to match qualified
360	sales tax exemptions that a certified business designates for
361	use by state universities and community colleges to support
362	research and development projects requested by the certified
363	business. The Board of GovernorsState Board of Educationmay
364	authorize any university to encumber the state matching portion
365	of a challenge grant from funds available under s. 1011.45.
366	(2) The Board of GovernorsState Board of Educationshall
367	specify the process for submission, documentation, and approval
368	of requests for matching funds, accountability for endowments
369	and proceeds of endowments, allocations to universities,
370	restrictions on the use of the proceeds from endowments, and
371	criteria used in determining the value of donations.
372	(3)(a) The Board of GovernorsState Board of Education
373	shall allocate the amount appropriated to the trust fund to each
374	university and New College based on the amount of the donation
375	and the restrictions applied to the donation.
376	(b) Donations for a specific purpose must be matched in
377	the following manner:
378	1. Each university that raises at least $100,000 but no
379	more than $599,999 from a private source must receive a matching
380	grant equal to 50 percent of the private contribution.
381	2. Each university that raises a contribution of at least
382	$600,000 but no more than $1 million from a private source must
383	receive a matching grant equal to 70 percent of the private
384	contribution.
385	3. Each university that raises a contribution in excess of
386	$1 million but no more than $1.5 million from a private source
387	must receive a matching grant equal to 75 percent of the private
388	contribution.
389	4. Each university that raises a contribution in excess of
390	$1.5 million but no more than $2 million from a private source
391	must receive a matching grant equal to 80 percent of the private
392	contribution.
393	5. Each university that raises a contribution in excess of
394	$2 million from a private source must receive a matching grant
395	equal to 100 percent of the private contribution.
396	6. The amount of matching funds used to match a single
397	gift in any given year shall be limited to $3 million. The total
398	amount of matching funds available for any single gift shall be
399	limited to $15 million, to be distributed in equal amounts of $3
400	million per year over a period of 5 years.
401	(c) The Board of GovernorsState Board of Educationshall
402	encumber state matching funds for any pledged contributions, pro
403	rata, based on the requirements for state matching funds as
404	specified for the particular challenge grant and the amount of
405	the private donations actually received by the university for
406	the respective challenge grant.
407	(4) Matching funds may be provided for contributions
408	encumbered or pledged under the Eminent Scholars Act prior to
409	July 1, 1994, and for donations or pledges of any amount equal
410	to or in excess of the prescribed minimums which are pledged for
411	the purpose of this section.
412	(5)(a) Each university foundation and New College
413	Foundation shall establish a challenge grant account for each
414	challenge grant as a depository for private contributions and
415	state matching funds to be administered on behalf of the Board
416	of GovernorsState Board of Education, the university, or New
417	College. State matching funds must be transferred to a
418	university foundation or New College Foundation upon
419	notification that the university or New College has received and
420	deposited the amount specified in this section in a foundation
421	challenge grant account.
422	(b) The foundation serving a university and New College
423	Foundation each has the responsibility for the maintenance and
424	investment of its challenge grant account and for the
425	administration of the program on behalf of the university or New
426	College, pursuant to procedures specified by the Board of
427	GovernorsState Board of Education. Each foundation shall
428	include in its annual report to the Board of GovernorsState
429	Board of Educationinformation concerning collection and
430	investment of matching gifts and donations and investment of the
431	account.
432	(c) A donation of at least $600,000 and associated state
433	matching funds may be used to designate an Eminent Scholar
434	Endowed Chair pursuant to procedures specified by the Board of
435	GovernorsState Board of Education.
436	(6) The donations, state matching funds, or proceeds from
437	endowments established under this section may not be expended
438	for the construction, renovation, or maintenance of facilities
439	or for the support of intercollegiate athletics.
440	Section 5. Subsection (5) of section 17.076, Florida
441	Statutes, is amended to read:
442	17.076 Direct deposit of funds.--
443	(5) All direct deposit records made prior to October 1,
444	1986, are exempt from the provisions of s. 119.07(1). With
445	respect to direct deposit records made on or after October 1,
446	1986, the names of the authorized financial institutions and the
447	account numbers of the beneficiaries are confidential and exempt
448	from the provisions of s. 119.07(1) and s. 24(a), Art. I of the
449	State Constitution. Notwithstanding this exemption and the
450	provisions of s. 119.07(3)(dd), the department may provide a
451	state university, upon request, with that university’s employee
452	or vendor direct deposit authorization information on file with
453	the department in order to accommodate the transition to the
454	university accounting system. The state university shall
455	maintain the confidentiality of all such information provided by
456	the department.
457	Section 6. Paragraph (a) of subsection (1) of section
458	20.055, Florida Statutes, is amended to read:
459	20.055 Agency inspectors general.--
460	(1) For the purposes of this section:
461	(a) "State agency" means each department created pursuant
462	to this chapter, and also includes the Executive Office of the
463	Governor, the Department of Military Affairs, the Board of
464	Regents,the Fish and Wildlife Conservation Commission, the
465	Public Service Commission, and the state courts system.
466	Section 7. Subsection (2) of section 110.161, Florida
467	Statutes, is amended to read:
468	110.161 State employees; pretax benefits program.--
469	(2) As used in this section, "employee" means any
470	individual filling an authorized and established position in the
471	executive, legislative, or judicial branch of the state,
472	including the employees of the State Board of Administration and
473	state universities.
474	Section 8. Subsection (2) of section 112.215, Florida
475	Statutes, is amended to read:
476	112.215 Government employees; deferred compensation
477	program.--
478	(2) For the purposes of this section, the term "employee"
479	means any person, whether appointed, elected, or under contract,
480	providing services for the state; any state agency or county or
481	other political subdivision of the state; any municipality; any
482	state university board of trustees;or any constitutional county
483	officer under s. 1(d), Art. VIII of the State Constitution for
484	which compensation or statutory fees are paid.
485	Section 9. Subsections (1) through (6) of section 287.064,
486	Florida Statutes, are amended to read:
487	287.064 Consolidated financing of deferred-payment
488	purchases.--
489	(1) The Division of Bond Finance of the State Board of
490	Administration and the Comptroller shall plan and coordinate
491	deferred-payment purchases made by or on behalf of the state or
492	its agencies or by or on behalf of state universities orstate
493	community colleges participating under this section pursuant to
494	s. 1001.74(5) or s. 1001.64(26), respectively. The Division of
495	Bond Finance shall negotiate and the Comptroller shall execute
496	agreements and contracts to establish master equipment financing
497	agreements for consolidated financing of deferred-payment,
498	installment sale, or lease purchases with a financial
499	institution or a consortium of financial institutions. As used
500	in this act, the term "deferred-payment" includes installment
501	sale and lease-purchase.
502	(a) The period during which equipment may be acquired
503	under any one master equipment financing agreement shall be
504	limited to not more than 3 years.
505	(b) Repayment of the whole or a part of the funds drawn
506	pursuant to the master equipment financing agreement may
507	continue beyond the period established pursuant to paragraph
508	(a).
509	(c) The interest rate component of any master equipment
510	financing agreement shall be deemed to comply with the interest
511	rate limitation imposed in s. 287.063 so long as the interest
512	rate component of every interagency, state university,or
513	community college agreement entered into under such master
514	equipment financing agreement complies with the interest rate
515	limitation imposed in s. 287.063. Such interest rate limitation
516	does not apply when the payment obligation under the master
517	equipment financing agreement is rated by a nationally
518	recognized rating service in any one of the three highest
519	classifications, which rating services and classifications are
520	determined pursuant to rules adopted by the Comptroller.
521	(2) Unless specifically exempted by the Comptroller, all
522	deferred-payment purchases, including those made by a state
523	university orcommunity college that is participating under this
524	section, shall be acquired by funding through master equipment
525	financing agreements. The Comptroller is authorized to exempt
526	any purchases from consolidated financing when, in his or her
527	judgment, alternative financing would be cost-effective or
528	otherwise beneficial to the state.
529	(3) The Comptroller may require agencies to enter into
530	interagency agreements and may require participating state
531	universities orcommunity colleges to enter into systemwide
532	agreements for the purpose of carrying out the provisions of
533	this act.
534	(a) The term of any interagency or systemwide agreement
535	shall expire on June 30 of each fiscal year but shall
536	automatically be renewed annually subject to appropriations and
537	deferred-payment schedules. The period of any interagency or
538	systemwide agreement shall not exceed the useful life of the
539	equipment for which the agreement was made as determined by the
540	Comptroller.
541	(b) The interagency or systemwide agreements may include,
542	but are not limited to, equipment costs, terms, and a pro rata
543	share of program and issuance expenses.
544	(4) Each state university orcommunity college may choose
545	to have its purchasing agreements involving administrative and
546	instructional materials consolidated under this section.
547	(5) The Comptroller is authorized to automatically debit
548	each agency's or state university’sfunds and each community
549	college's portion of the Community College Program Fund
550	consistently with the deferred-payment schedules.
551	(6) There is created the Consolidated Payment Trust Fund
552	in the Comptroller's office for the purpose of implementing the
553	provisions of this act. All funds debited from each agency,
554	state university, and eachcommunity college may be deposited in
555	the trust fund and shall be used to meet the financial
556	obligations incurred pursuant to this act. Any income from the
557	investment of funds may be used to fund administrative costs
558	associated with this program.
559	Section 10. Subsection (6) of section 440.38, Florida
560	Statutes, is amended to read:
561	440.38 Security for compensation; insurance carriers and
562	self-insurers.--
563	(6) The state and its boards, bureaus, departments, and
564	agencies and all of its political subdivisions which employ
565	labor, and the state universities,shall be deemed self-insurers
566	under the terms of this chapter, unless they elect to procure
567	and maintain insurance to secure the benefits of this chapter to
568	their employees; and they are hereby authorized to pay the
569	premiums for such insurance.
570	Section 11. Subsection (19) of section 1001.74, Florida
571	Statutes, is amended to read:
572	1001.74 Powers and duties of university boards of
573	trustees.--
574	(19) Each board of trustees shall establish the personnel
575	program for all employees of the university, including the
576	president, pursuant to the provisions of chapter 1012 and, in
577	accordance with rules and guidelines of the State Board of
578	Education, including: compensation and other conditions of
579	employment, recruitment and selection, nonreappointment,
580	standards for performance and conduct, evaluation, benefits and
581	hours of work, leave policies, recognition and awards,
582	inventions and works, travel, learning opportunities, exchange
583	programs, academic freedom and responsibility, promotion,
584	assignment, demotion, transfer, tenure and permanent status,
585	ethical obligations and conflicts of interest, restrictive
586	covenants, disciplinary actions, complaints, appeals and
587	grievance procedures, and separation and termination from
588	employment. The Department of Management Services shall retain
589	authority over state university employees for programs
590	established in ss. 110.123, 110.1232, 110.1234, and 110.1238,
591	and 110.161and in chapters 121, 122, and 238.
592	Section 12. Subsection (5) of section 1004.24, Florida
593	Statutes, is amended to read:
594	1004.24 State Board of Education authorized to secure
595	liability insurance.--
596	(5) Each self-insurance program council shall make
597	provision for an annual financial audit pursuant to s. 11.45
598	postaudit of its financialaccounts to be conducted by an
599	independent certified public accountant. The annual audit report
600	must include a management letter and shall be submitted to the
601	State Board of Education for review. The State Board of
602	Education shall have the authority to require and receive from
603	the self-insurance program council or from its independent
604	auditor any detail or supplemental data relative to the
605	operation of the self-insurance program.
606	Section 13. Subsections (1) and (5) of section 1004.26,
607	Florida Statutes, are amended to read:
608	1004.26 University student governments.--
609	(1) A student government is created on the main campus of
610	each state university. In addition, each university board of
611	trustees may establish a student government on any branch campus
612	or center. Each student government is a part of the university
613	at which it is established.
614	(5) Each student government is a part of the university at
615	which it is established. If an internal procedure of the
616	university student government is disapproved by the university
617	president under s. 229.0082(15), a member of the university
618	board of trustees may request a review of the disapproved
619	procedure at the next meeting of the board of trustees.
620	Section 14. Paragraph (d) of subsection (3) of section
621	1004.445, Florida Statutes, is amended to read:
622	1004.445 Florida Alzheimer's Center and Research
623	Institute.--
624	(3) The State Board of Education shall provide in the
625	agreement with the not-for-profit corporation for the following:
626	(d) Preparation of an annual financial audit pursuant to
627	s. 11.45postaudit of the not-for-profit corporation's financial
628	accounts and the financialaccounts of any subsidiaries to be
629	conducted by an independent certified public accountant. The
630	annual audit report shall include management letters and shall
631	be submitted to the Auditor General and the State Board of
632	Education for review. The State Board of Education, the Auditor
633	General, and the Office of Program Policy Analysis and
634	Government Accountability shall have the authority to require
635	and receive from the not-for-profit corporation and any
636	subsidiaries, or from their independent auditor, any detail or
637	supplemental data relative to the operation of the not-for-
638	profit corporation or subsidiary.
639	Section 15. Paragraphs (a) and (b) of subsection (2) of
640	section 1009.21, Florida Statutes, are amended, paragraph (d) is
641	added to said subsection, and paragraph (k) is added to
642	subsection (10) of said section, to read:
643	1009.21 Determination of resident status for tuition
644	purposes.--Students shall be classified as residents or
645	nonresidents for the purpose of assessing tuition in community
646	colleges and state universities.
647	(2)(a) To qualify as a resident for tuition purposes:
648	1. A person or, if that person is a dependent child, his
649	or her parent or parents must have established legal residence
650	in this state and must have maintained legal residence in this
651	state for at least 12 months immediately prior to his or her
652	initial enrollment at a Florida postsecondary educational
653	institution. For purposes of this section, the term “initial
654	enrollment” is defined as the first day of classqualification.
655	2. Every applicant for admission to an institution of
656	higher education shall be required to make a statement as to his
657	or her length of residence in the state and, further, shall
658	establish that his or her presence or, if the applicant is a
659	dependent child, the presence of his or her parent or parents in
660	the state currently is, and during the requisite 12-month
661	qualifying period was, for the purpose of maintaining a bona
662	fide domicile, rather than for the purpose of maintaining a mere
663	temporary residence or abode incident to enrollment in an
664	institution of higher education.
665	(b) However, with respect to a dependent child living with
666	an adult relative other than the child's parent, such child may
667	qualify as a resident for tuition purposes if the adult relative
668	is a legal resident who has maintained legal residence in this
669	state for at least 12 months immediately prior to the child's
670	initial enrollment at a Florida postsecondary educational
671	institutionqualification, provided the child has resided
672	continuously with such relative for the 5 years immediately
673	prior to the child's initial enrollmentqualification, during
674	which time the adult relative has exercised day-to-day care,
675	supervision, and control of the child.
676	(d) A person who is classified as a nonresident for
677	tuition purposes may become eligible for reclassification as a
678	resident for tuition purposes if that person, or if that person
679	is a dependent child, his or her parent, presents documentation
680	that supports permanent residency in this state, such as
681	documentation of permanent full-time employment for the previous
682	12 months or the purchase of a home in this state and residence
683	therein for the prior 12 months.
684	(10) The following persons shall be classified as
685	residents for tuition purposes:
686	(k) A graduate teaching assistant or graduate research
687	assistant while employed by a state university, when such
688	employment is at least one-half time in a teaching or research
689	assistant position that relates to the graduate assistant’s
690	degree program.
691	Section 16. Subsections (3) and (13) of section 1009.24,
692	Florida Statutes, are amended to read:
693	1009.24 State university student fees.--
694	(3) Within proviso in the General Appropriations Act and
695	law, each board of trustees shall set university tuition and
696	fees. The sum of the activity and service, health, and athletic
697	fees a student is required to pay to register for a course shall
698	not exceed 40 percent of the tuition established in law or in
699	the General Appropriations Act. No university shall be required
700	to lower any fee in effect on the effective date of this act in
701	order to comply with this subsection. Within the 40 percent cap,
702	universities may not increase the aggregate sum of activity and
703	service, health, and athletic fees more than 5 percent per year
704	unless specifically authorized in law or in the General
705	Appropriations Act. This subsection does not prohibit a
706	university from increasing or assessing optional fees related to
707	specific activities if payment of such fees is not required as a
708	part of registration for courses. Except as otherwise provided
709	by law, the sum of nonresident tuition and out-of-state fees
710	charged to undergraduates shall be sufficient to defray the full
711	cost of undergraduate education.
712	(13) Each university board of trustees is authorized to
713	establish a nonrefundable admissions deposit for undergraduate,
714	graduate, and professional degree programs in an amount not to
715	exceed $200. The admissions deposit shall be imposed at the time
716	of an applicant’s acceptance to the university and shall be
717	applied toward tuition upon enrollment. In the event the
718	applicant does not enroll in the university, the admissions
719	deposit shall be deposited in an auxiliary account of the
720	university and used to expand financial assistance,
721	scholarships, and student academic and career counseling
722	services at the university. A university board of trustees that
723	establishes an admissions deposit pursuant to this subsection
724	must also adopt policies that provide for the waiver of such
725	deposit on the basis of financial hardship.The board of
726	trustees of the University of Florida is authorized to establish
727	an admissions deposit fee for the University of Florida College
728	of Dentistry in an amount not to exceed $200.
729	Section 17. Section 1012.975, Florida Statutes, is created
730	to read:
731	1012.975 Remuneration of state university presidents;
732	limitations.--
733	(1) DEFINITIONS.--As used in this section, the term:
734	(a) "Cash-equivalent compensation" means any benefit that
735	may be assigned an equivalent cash value.
736	(b) "Public funds" means funds appropriated from the
737	General Revenue Fund, funds appropriated from state trust funds,
738	tuition and fees, or any funds from a state university trust
739	fund regardless of repository.
740	(c) "Remuneration" means salary, bonuses, and cash-
741	equivalent compensation paid to a state university president by
742	his or her employer for work performed, excluding health
743	insurance benefits and retirement benefits.
744	(2) LIMITATION ON COMPENSATION.--Notwithstanding any other
745	law, resolution, or rule to the contrary, a state university
746	president may not receive more than $225,000 in remuneration
747	annually from public funds. Only compensation, as such term is
748	defined in s. 121.021(22), provided to a state university
749	president may be used in calculating benefits under chapter 121.
750	(3) EXCEPTIONS.--This section does not prohibit any party
751	from providing cash or cash-equivalent compensation from funds
752	that are not public funds to a state university president in
753	excess of the limit in subsection (2). If a party is unable or
754	unwilling to fulfill an obligation to provide cash or cash-
755	equivalent compensation to a state university president as
756	permitted under this subsection, public funds may not be used to
757	fulfill such obligation.
758	Section 18. Except as otherwise provided herein, this act
759	shall take effect July 1, 2003.
760