HB 235

1	A bill to be entitled
2	An act relating to community college finance; amending s.
3	1001.64, F.S.; providing conditions for certain
4	contracting by community college boards of trustees;
5	authorizing boards of trustees to enter into certain
6	short-term loans and contracts and make payments subject
7	to appropriation; authorizing boards of trustees to incur
8	long-term debt according to specified requirements;
9	amending s. 1004.70, F.S.; requiring community college
10	boards of trustees to authorize debt incurred by direct-
11	support organizations; authorizing delegation for approval
12	of short-term loans and lease-purchase agreements;
13	providing restrictions; amending s. 1009.22, F.S.,
14	relating to workforce education postsecondary student
15	fees, and s. 1009.23, F.S., relating to community college
16	student fees; revising provisions relating to pledge of
17	fee revenues to repayment of debt by community college
18	boards of trustees; providing requirements for the
19	request, issuance, securing, and payment of bonds;
20	revising provisions relating to validation of bonds;
21	providing for limitation of actions; amending s. 1011.84,
22	F.S.; correcting references; providing for transmittal of
23	funds for amounts required for capital improvement revenue
24	bond debt service under certain circumstances; providing
25	restrictions; authorizing rules; providing an effective
26	date.
27
28	Be It Enacted by the Legislature of the State of Florida:
29
30	Section 1.  Subsections (26) and (38) of section 1001.64,
31	Florida Statutes, are amended to read:
32	1001.64  Community college boards of trustees; powers and
33	duties.--
34	(26)  Each board of trustees is authorized to contract for
35	the purchase, sale, lease, license, or acquisition in any manner
36	(including purchase by installment or lease-purchase contract
37	which may provide for the payment of interest on the unpaid
38	portion of the purchase price and for the granting of a security
39	interest in the items purchased, subject to the provisions of
40	subsection (38) and ss. 1009.22 and 1009.23) of goods,
41	materials, equipment, and services required by the community
42	college. The board of trustees may choose to consolidate
43	equipment contracts under master equipment financing agreements
44	made pursuant to s. 287.064.
45	(38)  Each board of trustees is authorized to enter into
46	short-term loans and installment, lease-purchase, and other
47	financing contracts for a term of not more than 5 years,
48	including renewals, extensions, and refundings. Payments on
49	short-term loans and installment, lease-purchase, and other
50	financing contracts pursuant to this subsection shall be subject
51	to annual appropriation by the board of trustees. Each board of
52	trustees is authorized to borrow funds and incur long-term debt,
53	including promissory notes, installment sales agreements, lease-
54	purchase agreements, certificates of participation, and other
55	similar long-term financing arrangements, only as specifically
56	provided entering into lease-purchase agreements and the
57	issuance of revenue bonds as specifically authorized and only
58	for the purposes authorized in ss. 1009.22(6) and (9), and
59	1009.23(11) and (12), and 215.61(1). At the option of the board
60	of trustees, bonds issued pursuant to ss. 1009.22(6) and (9) and
61	1009.23(11) and (12) may be issued which are secured by a
62	combination of revenues authorized to be pledged to bonds
63	pursuant to such subsections ss. 1009.22(6) and 1009.23(11) or
64	ss. 1009.22(9) and 1009.23(12). Notwithstanding the provisions
65	of this subsection, lease-purchase agreements may be secured by
66	a combination of revenues as specifically authorized pursuant to
67	ss. 1009.22(7) and 1009.23(10).
68	Section 2.  Paragraph (e) is added to subsection (4) of
69	section 1004.70, Florida Statutes, to read:
70	1004.70  Community college direct-support organizations.--
71	(4)  ACTIVITIES; RESTRICTIONS.--
72	(e)  A community college board of trustees must authorize
73	all debt, including lease-purchase agreements, incurred by a
74	direct-support organization. Authorization for approval of
75	short-term loans and lease-purchase agreements for a term of not
76	more than 5 years, including renewals, extensions, and
77	refundings, for goods, materials, equipment, and services may be
78	delegated by the board of trustees to the board of directors of
79	the direct-support organization. Trustees shall evaluate
80	proposals for debt according to guidelines issued by the
81	Division of Community Colleges. Revenues of the community
82	college shall not be pledged to debt issued by direct-support
83	organizations.
84	Section 3.  Subsections (6) and (9) of section 1009.22,
85	Florida Statutes, are amended to read:
86	1009.22  Workforce education postsecondary student fees.--
87	(6)(a)  Each district school board and community college
88	board of trustees may establish a separate fee for capital
89	improvements, technology enhancements, or equipping buildings
90	which may not exceed 5 percent of tuition for resident students
91	or 5 percent of tuition and out-of-state fees for nonresident
92	students. Funds collected by community colleges through the fee
93	these fees may be bonded only for the purpose of financing or
94	refinancing new construction and equipment, renovation, or
95	remodeling of educational facilities. The fee shall be collected
96	as a component part of the tuition and fees, paid into a
97	separate account, and expended only to construct and equip,
98	maintain, improve, or enhance the certificate career education
99	or adult education facilities of the school district or
100	community college. Projects funded through the use of the
101	capital improvement fee must meet the survey and construction
102	requirements of chapter 1013. Pursuant to s. 216.0158, each
103	district school board and community college board of trustees
104	shall identify each project, including maintenance projects,
105	proposed to be funded in whole or in part by such fee. Capital
106	improvement fee revenues may be pledged by a board of trustees
107	as a dedicated revenue source to the repayment of debt,
108	including lease-purchase agreements, with an overall term of not
109	more than 7 years, including renewals, extensions, and
110	refundings, and revenue bonds, with a term not exceeding to
111	exceed 20 years, and not exceeding to exceed the useful life of
112	the asset being financed, only for the new construction and
113	equipment, renovation, or remodeling of educational facilities.
114	Bonds authorized pursuant to this paragraph shall be requested
115	by the community college board of trustees and shall be issued
116	by the Division of Bond Finance in compliance with s. 11(d),
117	Art. VII of the State Constitution and the State Bond Act. The
118	Division of Bond Finance may pledge fees collected by one or
119	more community colleges, including capital improvement fees
120	collected pursuant to s. 1009.23(11), to secure such bonds. Any
121	project included in the approved educational plant survey
122	pursuant to chapter 1013 is approved pursuant to s. 11(f), Art.
123	VII of the State Constitution. Community colleges may use the
124	services of the Division of Bond Finance of the State Board of
125	Administration to issue any bonds authorized through the
126	provisions of this subsection. Any such bonds issued by the
127	Division of Bond Finance shall be in compliance with the
128	provisions of the State Bond Act. Bonds issued pursuant to this
129	paragraph may the State Bond Act shall be validated in the
130	manner provided by chapter 75. The complaint for such validation
131	shall be filed in the circuit court of the county where the seat
132	of state government is situated, the notice required to be
133	published by s. 75.06 shall be published only in the county
134	where the complaint is filed, and the complaint and order of the
135	circuit court shall be served only on the state attorney of the
136	circuit in which the action is pending. A maximum of 15 cents
137	per credit hour may be allocated from the capital improvement
138	fee for child care centers conducted by the district school
139	board or community college board of trustees. The use of capital
140	improvement fees for such purpose shall be subordinate to the
141	payment of any bonds secured by the fees.
142	(b)  The state does hereby covenant with the holders of the
143	bonds issued under paragraph (a) that it will not take any
144	action that will materially and adversely affect the rights of
145	such holders so long as the bonds authorized by paragraph (a)
146	are outstanding.
147	(9)(a)  Community college boards of trustees and district
148	school boards are not authorized to charge students enrolled in
149	workforce development programs any fee that is not specifically
150	authorized by statute. In addition to tuition, out-of-state,
151	financial aid, capital improvement, and technology fees, as
152	authorized in this section, community college boards of trustees
153	and district school boards are authorized to establish fee
154	schedules for the following user fees and fines: laboratory
155	fees; parking fees and fines; library fees and fines; fees and
156	fines relating to facilities and equipment use or damage; access
157	or identification card fees; duplicating, photocopying, binding,
158	or microfilming fees; standardized testing fees; diploma
159	replacement fees; transcript fees; application fees; graduation
160	fees; and late fees related to registration and payment. Such
161	user fees and fines shall not exceed the cost of the services
162	provided and shall only be charged to persons receiving the
163	service. Parking fee revenues may be pledged by a community
164	college board of trustees as a dedicated revenue source for the
165	repayment of debt, including lease-purchase agreements, with an
166	overall term of not more than 7 years, including renewals,
167	extensions, and refundings, and revenue bonds with a term terms
168	not exceeding 20 years and not exceeding the useful life of the
169	asset being financed. Community colleges shall use the services
170	of the Division of Bond Finance of the State Board of
171	Administration to issue any revenue bonds authorized by the
172	provisions of this paragraph subsection. Any such bonds issued
173	by the Division of Bond Finance shall be in compliance with the
174	provisions of the State Bond Act. Bonds issued pursuant to the
175	State Bond Act may shall be validated in the manner established
176	in chapter 75. The complaint for such validation shall be filed
177	in the circuit court of the county where the seat of state
178	government is situated, the notice required to be published by
179	s. 75.06 shall be published only in the county where the
180	complaint is filed, and the complaint and order of the circuit
181	court shall be served only on the state attorney of the circuit
182	in which the action is pending.
183	(b)  As provided in this paragraph, a community college
184	board of trustees may, without utilizing the services or
185	obtaining the approval of the Division of Bond Finance, pledge
186	parking fee revenues to debt, including promissory notes,
187	installment sales agreements, lease-purchase agreements,
188	certificates of participation, and other similar financing
189	arrangements, for an overall term of not more than 20 years,
190	including renewals, extensions, refinancings, and refundings,
191	and not exceeding the useful life of the asset being financed as
192	long as the interest rate on any fixed-rate financing is lower
193	than the interest rate on such debt as determined by reference
194	to the Municipal Market Data yields listing for the debt-rating
195	category most closely comparable to the debt being issued
196	immediately prior to the date such interest rate on the debt is
197	set. If the Municipal Market Data yields are no longer
198	available, the interest rate shall be lower than the rate
199	determined by reference to a nationally recognized tax-exempt
200	benchmark interest-rate index. The interest rate on any
201	variable-rate financing must be lower than that of a nationally
202	recognized tax-exempt variable-rate index.
203	Section 4.  Subsections (11) and (12) of section 1009.23,
204	Florida Statutes, are amended to read:
205	1009.23  Community college student fees.--
206	(11)(a)  Each community college board of trustees may
207	establish a separate fee for capital improvements, technology
208	enhancements, or equipping student buildings which may not
209	exceed 10 percent of tuition for resident students or 10 percent
210	of the sum of tuition and out-of-state fees for nonresident
211	students. The fee for resident students shall be limited to an
212	increase of $2 per credit hour over the prior year. Funds
213	collected by community colleges through the fee these fees may
214	be bonded only as provided in this subsection for the purpose of
215	financing or refinancing new construction and equipment,
216	renovation, or remodeling of educational facilities. The fee
217	shall be collected as a component part of the tuition and fees,
218	paid into a separate account, and expended only to construct and
219	equip, maintain, improve, or enhance the educational facilities
220	of the community college. Projects funded through the use of the
221	capital improvement fee shall meet the survey and construction
222	requirements of chapter 1013. Pursuant to s. 216.0158, each
223	community college shall identify each project, including
224	maintenance projects, proposed to be funded in whole or in part
225	by such fee.
226	(b)  Capital improvement fee revenues may be pledged by a
227	board of trustees as a dedicated revenue source to the repayment
228	of debt, including lease-purchase agreements, with an overall
229	term, including renewals, extensions, and refundings, of not
230	more than 7 years, including renewals, extensions, and
231	refundings, and revenue bonds with a term not exceeding to
232	exceed 20 annual maturities and not exceeding to exceed the
233	useful life of the asset being financed, only for financing or
234	refinancing of the new construction and equipment, renovation,
235	or remodeling of educational facilities. Bonds authorized
236	pursuant to through the provisions of this subsection shall be
237	requested by the community college board of trustees and shall
238	be issued by the Division of Bond Finance upon the request of
239	the community college board of trustees in compliance with the
240	provisions of s. 11(d), Art. VII of the State Constitution and
241	the State Bond Act. The Division of Bond Finance may pledge fees
242	collected by one or more community colleges, including capital
243	improvement fees collected pursuant to s. 1009.22(6), to secure
244	such bonds. Any project included in the approved educational
245	plant survey pursuant to chapter 1013 is approved pursuant to s.
246	11(f)(d), Art. VII of the State Constitution.
247	(c)(d)  Any validation of the Bonds issued pursuant to this
248	subsection may be validated shall be in the manner provided by
249	chapter 75. Only the initial series of bonds is required to be
250	validated. The complaint for such validation shall be filed in
251	the circuit court of the county where the seat of state
252	government is situated, the notice required to be published by
253	s. 75.06 shall be published only in the county where the
254	complaint is filed, and the complaint and order of the circuit
255	court shall be served only on the state attorney of the circuit
256	in which the action is pending.
257	(d)(e)  A maximum of 15 percent may be allocated from the
258	capital improvement fee for child care centers conducted by the
259	community college. The use of capital improvement fees for such
260	purpose shall be subordinate to the payment of any bonds secured
261	by the fees.
262	(e)(c)  The state does hereby covenant with the holders of
263	the bonds issued under this subsection that it will not take any
264	action that will materially and adversely affect the rights of
265	such holders so long as the bonds authorized by this subsection
266	are outstanding.
267	(12)(a)  In addition to tuition, out-of-state, financial
268	aid, capital improvement, student activity and service, and
269	technology fees authorized in this section, each community
270	college board of trustees is authorized to establish fee
271	schedules for the following user fees and fines: laboratory
272	fees; parking fees and fines; library fees and fines; fees and
273	fines relating to facilities and equipment use or damage; access
274	or identification card fees; duplicating, photocopying, binding,
275	or microfilming fees; standardized testing fees; diploma
276	replacement fees; transcript fees; application fees; graduation
277	fees; and late fees related to registration and payment. Such
278	user fees and fines shall not exceed the cost of the services
279	provided and shall only be charged to persons receiving the
280	service. A community college may not charge any fee except as
281	authorized by law or rules of the State Board of Education.
282	Parking fee revenues may be pledged by a community college board
283	of trustees as a dedicated revenue source for the repayment of
284	debt, including lease-purchase agreements, with an overall term
285	of not more than 7 years, including renewals, extensions, and
286	refundings, and revenue bonds with a term terms not exceeding 20
287	years and not exceeding the useful life of the asset being
288	financed. Community colleges shall use the services of the
289	Division of Bond Finance of the State Board of Administration to
290	issue any revenue bonds authorized by the provisions of this
291	paragraph subsection. Any such bonds issued by the Division of
292	Bond Finance shall be in compliance with the provisions of the
293	State Bond Act. Bonds issued pursuant to the State Bond Act may
294	shall be validated in the manner established in chapter 75. The
295	complaint for such validation shall be filed in the circuit
296	court of the county where the seat of state government is
297	situated, the notice required to be published by s. 75.06 shall
298	be published only in the county where the complaint is filed,
299	and the complaint and order of the circuit court shall be served
300	only on the state attorney of the circuit in which the action is
301	pending.
302	(b)  As provided in this paragraph, a community college
303	board of trustees may, without utilizing the services or
304	obtaining the approval of the Division of Bond Finance, pledge
305	parking fee revenues to debt, including promissory notes,
306	installment sales agreements, lease-purchase agreements,
307	certificates of participation, and other similar financing
308	arrangements, for an overall term of not more than 20 years,
309	including renewals, extensions, refinancings, and refundings,
310	and not exceeding the useful life of the asset being financed as
311	long as the interest rate on any fixed-rate financing is lower
312	than the interest rate on such debt as determined by reference
313	to the Municipal Market Data yields listing for the debt-rating
314	category most closely comparable to the debt being issued
315	immediately prior to the date such interest rate on the debt is
316	set. If the Municipal Market Data yields are no longer
317	available, the interest rate shall be lower than the rate
318	determined by reference to a nationally recognized tax-exempt
319	benchmark interest-rate index. The interest rate on any
320	variable-rate financing must be lower than that of a nationally
321	recognized tax-exempt variable-rate index.
322	Section 5.  Section 1011.84, Florida Statutes, is amended
323	to read:
324	1011.84  Procedure for determining state financial support
325	and annual apportionment of state funds to each community
326	college district.--The procedure for determining state financial
327	support and the annual apportionment to each community college
328	district authorized to operate a community college under the
329	provisions of s. 1001.61 shall be as follows:
330	(1)  DETERMINING THE AMOUNT TO BE INCLUDED IN THE COMMUNITY
331	COLLEGE PROGRAM FUND FOR THE CURRENT OPERATING PROGRAM.--
332	(a)  The Department of Education shall determine annually
333	from an analysis of operating costs, prepared in the manner
334	prescribed by rules of the State Board of Education, the costs
335	per full-time equivalent student served in courses and fields of
336	study offered in community colleges. This information and
337	current college operating budgets shall be submitted to the
338	Executive Office of the Governor with the legislative budget
339	request prior to each regular session of the Legislature.
340	(b)  The allocation of funds for community colleges shall
341	be based on advanced and professional disciplines, college-
342	preparatory programs, and other programs for adults funded
343	pursuant to s. 1011.80.
344	(c)  The category of lifelong learning is for students
345	enrolled pursuant to s. 1004.93. A student shall also be
346	reported as a lifelong learning student for his or her
347	enrollment in any course that he or she has previously taken,
348	unless it is a credit course in which the student earned a grade
349	of D or F.
350	(d)  If an adult student has been determined to be a
351	disabled student eligible for an approved educational program
352	for disabled adults provided pursuant to s. 1004.93 and rules of
353	the State Board of Education and is enrolled in a class with
354	curriculum frameworks developed for the program, state funding
355	for that student shall be provided at a level double that of a
356	student enrolled in a special adult general education program
357	provided by a community college.
358	(e)  All state inmate education provided by community
359	colleges shall be reported by program, FTE expenditure, and
360	revenue source. These enrollments, expenditures, and revenues
361	shall be reported and projected separately. Instruction of state
362	inmates shall not be included in the full-time equivalent
363	student enrollment for funding through the Community College
364	Program Fund.
365	(f)  When a public educational institution has been fully
366	funded by an external agency for direct instructional costs of
367	any course or program, the FTE generated shall not be reported
368	for state funding.
369	(g)  The State Board of Education shall adopt rules to
370	implement s. 9(d)(8)g.f., Art. XII of the State Constitution.
371	These rules shall provide for the use of the funds available
372	under s. 9(d)(8)g.f., Art. XII by an individual community
373	college for operating expense in any fiscal year during which
374	the State Board of Education has determined that all major
375	capital outlay needs have been met. Highest priority for the use
376	of these funds for purposes other than financing approved
377	capital outlay projects shall be for the proper maintenance and
378	repair of existing facilities for projects approved by the State
379	Board of Education. However, in any fiscal year in which funds
380	from this source are authorized for operating expense other than
381	approved maintenance and repair projects, the allocation of
382	community college program funds shall be reduced by an amount
383	equal to the sum used for such operating expense for that
384	community college that year, and that amount shall not be
385	released or allocated among the other community colleges that
386	year.
387	(2)  DETERMINING THE AMOUNT TO BE INCLUDED FOR CAPITAL
388	OUTLAY AND DEBT SERVICE.--The amount included for capital outlay
389	and debt service shall be as determined and provided in s. 18,
390	Art. XII of the State Constitution of 1885, as adopted by s.
391	9(d), Art. XII of the 1968 revised State Constitution and State
392	Board of Education rules.
393	(3)  REDUCTION FOR AMOUNTS REQUIRED FOR CAPITAL IMPROVEMENT
394	REVENUE BOND DEBT SERVICE.--
395	(a)  If amounts sufficient to fully fund all debt service
396	payments with respect to bonds pledging capital improvement fee
397	revenues under s. 1009.22 or s. 1009.23 that have become due and
398	payable have not been forwarded to the State Board of
399	Administration as otherwise required by the proceedings
400	authorizing such bonds, the State Board of Administration,
401	pursuant to its powers and duties under s. 215.69, shall direct
402	the Department of Education to transmit legally available funds
403	remaining in the Community College Program Fund appropriated to
404	the community college with insufficient capital improvement fees
405	to pay debt service to the State Board of Administration for
406	such purpose. The Department of Education may adopt rules to
407	allocate such debt service liability among the community
408	colleges.
409	(b)  No community college may obligate the state to
410	appropriate funds pursuant to this subsection. Such funds are
411	only available to the extent appropriated, and nothing in this
412	subsection shall constitute a pledge of the state to continue
413	such appropriations.
414	(4)(3)  DETERMINING THE APPORTIONMENT FROM STATE FUNDS.--
415	(a)  By December 15 of each year, the Department of
416	Education shall estimate the annual enrollment of each community
417	college for the current fiscal year and for the 6 subsequent
418	fiscal years. These estimates shall be based upon prior years'
419	enrollments, upon the initial fall term enrollments for the
420	current fiscal year for each college, and upon each college's
421	estimated current enrollment and demographic changes in the
422	respective community college districts.
423	(b)  The apportionment to each community college from the
424	Community College Program Fund shall be determined annually in
425	the General Appropriations Act. In determining each college's
426	apportionment, the Legislature shall consider the following
427	components:
428	1.  Base budget, which includes the state appropriation to
429	the Community College Program Fund in the current year plus the
430	related student tuition and out-of-state fees assigned in the
431	current General Appropriations Act.
432	2.  The cost-to-continue allocation, which consists of
433	incremental changes to the base budget, including salaries,
434	price levels, and other related costs allocated through a
435	funding model approved by the Legislature which may recognize
436	differing economic factors arising from the individual
437	educational approaches of the various community colleges,
438	including, but not limited to:
439	a.  Direct Instructional Funding, including class size,
440	faculty productivity factors, average faculty salary, ratio of
441	full-time to part-time faculty, costs of programs, and
442	enrollment factors.
443	b.  Academic Support, including small colleges factor,
444	multicampus factor, and enrollment factor.
445	c.  Student Services Support, including headcount of
446	students as well as FTE count and enrollment factors.
447	d.  Library Support, including volume and other
448	materials/audiovisual requirements.
449	e.  Special Projects.
450	f.  Operations and Maintenance of Plant, including square
451	footage and utilization factors.
452	g.  District Cost Differential.
453	3.  Students enrolled in a recreation and leisure program
454	and students enrolled in a lifelong learning program who may not
455	be counted as full-time equivalent enrollments for purposes of
456	enrollment workload adjustments.
457	4.  Operating costs of new facilities adjustments, which
458	shall be provided, from funds available, for each new facility
459	that is owned by the college and is recommended in accordance
460	with s. 1013.31.
461	5.  New and improved program enhancements, which shall be
462	determined by the Legislature.
463
464	Student fees in the base budget plus student fee revenues
465	generated by increases in fee rates shall be deducted from the
466	sum of the components determined in subparagraphs 1.-5. The
467	amount remaining shall be the net annual state apportionment to
468	each college.
469	(c)  No community college shall commit funds for the
470	employment of personnel or resources in excess of those required
471	to continue the same level of support for either the previously
472	approved enrollment or the revised enrollment, whichever is
473	lower.
474	(d)  The apportionment to each community college district
475	for capital outlay and debt service shall be the amount
476	determined in accordance with subsection (2). This amount, less
477	any amount determined as necessary for administrative expense by
478	the State Board of Education and any amount necessary for debt
479	service on bonds issued by the State Board of Education pursuant
480	to s. 9(d), Art. XII of the 1968 revised State Constitution,
481	shall be transmitted to the community college board of trustees
482	to be expended in a manner prescribed by rules of the State
483	Board of Education.
484	(e)  If at any time the unencumbered balance in the general
485	fund of the community college board of trustees approved
486	operating budget goes below 5 percent, the president shall
487	provide written notification to the State Board of Education.
488	(f)  Expenditures for apprenticeship programs shall be
489	reported separately.
490	(5)(4)  EXPENDITURE OF ALLOCATED FUNDS.--Subject to the
491	provisions of subsection (3), any funds allocated herein to any
492	community college shall be expended only for the purpose of
493	supporting that community college.
494	(6)(5)  REPORT OF REMEDIAL EDUCATION.--Each community
495	college board of trustees shall report the volume and cost of
496	remedial education activities as a separate item in its annual
497	cost accounting system.
498	Section 6.  This act shall take effect July 1, 2008.

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