| 1 | A bill to be entitled |
| 2 | An act relating to community colleges; 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 | prohibiting a board of trustees from securing or repaying |
| 10 | such debt using tuition or certain other revenues; |
| 11 | amending s. 1004.70, F.S.; requiring community college |
| 12 | boards of trustees to authorize debt incurred by direct- |
| 13 | support organizations; authorizing delegation for approval |
| 14 | of short-term loans and lease-purchase agreements; |
| 15 | providing restrictions; amending s. 1009.22, F.S., |
| 16 | relating to workforce education postsecondary student |
| 17 | fees, and s. 1009.23, F.S., relating to community college |
| 18 | student fees; revising provisions relating to the pledge |
| 19 | of fee revenues to the repayment of debt by community |
| 20 | college boards of trustees; providing requirements for the |
| 21 | request, issuance, securing, and payment of bonds; |
| 22 | providing for limitation of actions; amending s. 1000.21, |
| 23 | F.S.; renaming Daytona Beach Community College as "Daytona |
| 24 | Beach College" and renaming Indian River Community College |
| 25 | as "Indian River College"; providing an effective date. |
| 26 |
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| 27 | Be It Enacted by the Legislature of the State of Florida: |
| 28 |
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| 29 | Section 1. Subsections (26) and (38) of section 1001.64, |
| 30 | Florida Statutes, are amended to read: |
| 31 | 1001.64 Community college boards of trustees; powers and |
| 32 | duties.-- |
| 33 | (26) Each board of trustees is authorized to contract for |
| 34 | the purchase, sale, lease, license, or acquisition in any |
| 35 | manner, (including purchase by installment or lease-purchase |
| 36 | contract which may provide for the payment of interest on the |
| 37 | unpaid portion of the purchase price and for the granting of a |
| 38 | security interest in the items purchased, subject to the |
| 39 | provisions of subsection (38) and ss. 1009.22 and 1009.23,) of |
| 40 | goods, materials, equipment, and services required by the |
| 41 | community college. The board of trustees may choose to |
| 42 | consolidate equipment contracts under master equipment financing |
| 43 | agreements made pursuant to s. 287.064. |
| 44 | (38) Each board of trustees is authorized to enter into |
| 45 | short-term loans and installment, lease-purchase, and other |
| 46 | financing contracts for a term of not more than 5 years, |
| 47 | including renewals, extensions, and refundings. Payments on |
| 48 | short-term loans and installment, lease-purchase, and other |
| 49 | financing contracts pursuant to this subsection shall be subject |
| 50 | to annual appropriation by the board of trustees. Each board of |
| 51 | trustees is authorized to borrow funds and incur long-term debt, |
| 52 | including promissory notes, installment sales agreements, lease- |
| 53 | purchase agreements, certificates of participation, and other |
| 54 | similar long-term financing arrangements, only as specifically |
| 55 | provided entering into lease-purchase agreements and the |
| 56 | issuance of revenue bonds as specifically authorized and only |
| 57 | for the purposes authorized in ss. 1009.22(6) and (9) and |
| 58 | 1009.23(11) and (12). At the option of the board of trustees, |
| 59 | bonds issued pursuant to ss. 1009.22(6) and (9) and 1009.23(11) |
| 60 | and (12) may be issued which are secured by a combination of |
| 61 | revenues authorized to be pledged to bonds pursuant to such |
| 62 | subsections ss. 1009.22(6) and 1009.23(11) or ss. 1009.22(9) and |
| 63 | 1009.23(12). Revenue bonds may not be secured by or paid from, |
| 64 | directly or indirectly, tuition, financial aid fees, the |
| 65 | Community College Program Fund, or any other operating revenues |
| 66 | of a community college. Lease-purchase agreements may be secured |
| 67 | by a combination of revenues as specifically authorized pursuant |
| 68 | to ss. 1009.22(7) and 1009.23(10). |
| 69 | Section 2. Paragraph (e) is added to subsection (4) of |
| 70 | section 1004.70, Florida Statutes, to read: |
| 71 | 1004.70 Community college direct-support organizations.-- |
| 72 | (4) ACTIVITIES; RESTRICTIONS.-- |
| 73 | (e) A community college board of trustees must authorize |
| 74 | all debt, including lease-purchase agreements, incurred by a |
| 75 | direct-support organization. Authorization for approval of |
| 76 | short-term loans and lease-purchase agreements for a term of not |
| 77 | more than 5 years, including renewals, extensions, and |
| 78 | refundings, for goods, materials, equipment, and services may be |
| 79 | delegated by the board of trustees to the board of directors of |
| 80 | the direct-support organization. Trustees shall evaluate |
| 81 | proposals for debt according to guidelines issued by the |
| 82 | Division of Community Colleges. Revenues of the community |
| 83 | college may not be pledged to debt issued by direct-support |
| 84 | organizations. |
| 85 | Section 3. Subsections (6) and (9) of section 1009.22, |
| 86 | Florida Statutes, are amended to read: |
| 87 | 1009.22 Workforce education postsecondary student fees.-- |
| 88 | (6)(a) Each district school board and community college |
| 89 | board of trustees may establish a separate fee for capital |
| 90 | improvements, technology enhancements, or equipping buildings |
| 91 | which may not exceed 5 percent of tuition for resident students |
| 92 | or 5 percent of tuition and out-of-state fees for nonresident |
| 93 | students. Funds collected by community colleges through the fee |
| 94 | these fees may be bonded only for the purpose of financing or |
| 95 | refinancing new construction and equipment, renovation, or |
| 96 | remodeling of educational facilities. The fee shall be collected |
| 97 | as a component part of the tuition and fees, paid into a |
| 98 | separate account, and expended only to construct and equip, |
| 99 | maintain, improve, or enhance the certificate career education |
| 100 | or adult education facilities of the school district or |
| 101 | community college. Projects funded through the use of the |
| 102 | capital improvement fee must meet the survey and construction |
| 103 | requirements of chapter 1013. Pursuant to s. 216.0158, each |
| 104 | district school board and community college board of trustees |
| 105 | shall identify each project, including maintenance projects, |
| 106 | proposed to be funded in whole or in part by such fee. Capital |
| 107 | improvement fee revenues may be pledged by a board of trustees |
| 108 | as a dedicated revenue source to the repayment of debt, |
| 109 | including lease-purchase agreements, with an overall term of not |
| 110 | more than 7 years, including renewals, extensions, and |
| 111 | refundings, and revenue bonds, with a term not exceeding to |
| 112 | exceed 20 years, and not exceeding to exceed the useful life of |
| 113 | the asset being financed, only for the new construction and |
| 114 | equipment, renovation, or remodeling of educational facilities. |
| 115 | Bonds authorized pursuant to this paragraph shall be requested |
| 116 | by the community college board of trustees and shall be issued |
| 117 | by the Division of Bond Finance in compliance with s. 11(d), |
| 118 | Art. VII of the State Constitution and the State Bond Act. The |
| 119 | Division of Bond Finance may pledge fees collected by one or |
| 120 | more community colleges to secure such bonds. Any project |
| 121 | included in the approved educational plant survey pursuant to |
| 122 | chapter 1013 is approved pursuant to s. 11(f), Art. VII of the |
| 123 | State Constitution. Community colleges may use the services of |
| 124 | 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 the |
| 129 | State Bond Act may shall be validated in the manner provided by |
| 130 | chapter 75. The complaint for such validation shall be filed in |
| 131 | the circuit court of the county where the seat of state |
| 132 | government is situated, the notice required to be published by |
| 133 | s. 75.06 shall be published only in the county where the |
| 134 | complaint is filed, and the complaint and order of the circuit |
| 135 | court shall be served only on the state attorney of the circuit |
| 136 | in which the action is pending. A maximum of 15 cents per credit |
| 137 | hour may be allocated from the capital improvement fee for child |
| 138 | care centers conducted by the district school board or community |
| 139 | college board of trustees. The use of capital improvement fees |
| 140 | for such purpose shall be subordinate to the payment of any |
| 141 | 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) 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 subsection. Any such bonds issued by the |
| 173 | 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 | Section 4. Subsections (11) and (12) of section 1009.23, |
| 184 | Florida Statutes, are amended to read: |
| 185 | 1009.23 Community college student fees.-- |
| 186 | (11)(a) Each community college board of trustees may |
| 187 | establish a separate fee for capital improvements, technology |
| 188 | enhancements, or equipping student buildings which may not |
| 189 | exceed 10 percent of tuition for resident students or 10 percent |
| 190 | of the sum of tuition and out-of-state fees for nonresident |
| 191 | students. The fee for resident students shall be limited to an |
| 192 | increase of $2 per credit hour over the prior year. Funds |
| 193 | collected by community colleges through the fee these fees may |
| 194 | be bonded only as provided in this subsection for the purpose of |
| 195 | financing or refinancing new construction and equipment, |
| 196 | renovation, or remodeling of educational facilities. The fee |
| 197 | shall be collected as a component part of the tuition and fees, |
| 198 | paid into a separate account, and expended only to construct and |
| 199 | equip, maintain, improve, or enhance the educational facilities |
| 200 | of the community college. Projects funded through the use of the |
| 201 | capital improvement fee shall meet the survey and construction |
| 202 | requirements of chapter 1013. Pursuant to s. 216.0158, each |
| 203 | community college shall identify each project, including |
| 204 | maintenance projects, proposed to be funded in whole or in part |
| 205 | by such fee. |
| 206 | (b) Capital improvement fee revenues may be pledged by a |
| 207 | board of trustees as a dedicated revenue source to the repayment |
| 208 | of debt, including lease-purchase agreements, with an overall |
| 209 | term, including renewals, extensions, and refundings, of not |
| 210 | more than 7 years, including renewals, extensions, and |
| 211 | refundings, and revenue bonds with a term not exceeding to |
| 212 | exceed 20 annual maturities and not exceeding to exceed the |
| 213 | useful life of the asset being financed, only for financing or |
| 214 | refinancing of the new construction and equipment, renovation, |
| 215 | or remodeling of educational facilities. Bonds authorized |
| 216 | pursuant to through the provisions of this subsection shall be |
| 217 | requested by the community college board of trustees and shall |
| 218 | be issued by the Division of Bond Finance upon the request of |
| 219 | the community college board of trustees in compliance with the |
| 220 | provisions of s. 11(d), Art. VII of the State Constitution and |
| 221 | the State Bond Act. The Division of Bond Finance may pledge fees |
| 222 | collected by one or more community colleges to secure such |
| 223 | bonds. Any project included in the approved educational plant |
| 224 | survey pursuant to chapter 1013 is approved pursuant to s. |
| 225 | 11(f)(d), Art. VII of the State Constitution. |
| 226 | (c)(d) Any validation of the Bonds issued pursuant to this |
| 227 | subsection may be validated shall be in the manner provided by |
| 228 | chapter 75. Only the initial series of bonds is required to be |
| 229 | validated. The complaint for such validation shall be filed in |
| 230 | the circuit court of the county where the seat of state |
| 231 | government is situated, the notice required to be published by |
| 232 | s. 75.06 shall be published only in the county where the |
| 233 | complaint is filed, and the complaint and order of the circuit |
| 234 | court shall be served only on the state attorney of the circuit |
| 235 | in which the action is pending. |
| 236 | (d)(e) A maximum of 15 percent may be allocated from the |
| 237 | capital improvement fee for child care centers conducted by the |
| 238 | community college. The use of capital improvement fees for such |
| 239 | purpose shall be subordinate to the payment of any bonds secured |
| 240 | by the fees. |
| 241 | (e)(c) The state does hereby covenant with the holders of |
| 242 | the bonds issued under this subsection that it will not take any |
| 243 | action that will materially and adversely affect the rights of |
| 244 | such holders so long as the bonds authorized by this subsection |
| 245 | are outstanding. |
| 246 | (12) In addition to tuition, out-of-state, financial aid, |
| 247 | capital improvement, student activity and service, and |
| 248 | technology fees authorized in this section, each community |
| 249 | college board of trustees is authorized to establish fee |
| 250 | schedules for the following user fees and fines: laboratory |
| 251 | fees; parking fees and fines; library fees and fines; fees and |
| 252 | fines relating to facilities and equipment use or damage; access |
| 253 | or identification card fees; duplicating, photocopying, binding, |
| 254 | or microfilming fees; standardized testing fees; diploma |
| 255 | replacement fees; transcript fees; application fees; graduation |
| 256 | fees; and late fees related to registration and payment. Such |
| 257 | user fees and fines shall not exceed the cost of the services |
| 258 | provided and shall only be charged to persons receiving the |
| 259 | service. A community college may not charge any fee except as |
| 260 | authorized by law or rules of the State Board of Education. |
| 261 | Parking fee revenues may be pledged by a community college board |
| 262 | of trustees as a dedicated revenue source for the repayment of |
| 263 | debt, including lease-purchase agreements, with an overall term |
| 264 | of not more than 7 years, including renewals, extensions, and |
| 265 | refundings, and revenue bonds with a term terms not exceeding 20 |
| 266 | years and not exceeding the useful life of the asset being |
| 267 | financed. Community colleges shall use the services of the |
| 268 | Division of Bond Finance of the State Board of Administration to |
| 269 | issue any revenue bonds authorized by the provisions of this |
| 270 | subsection. Any such bonds issued by the Division of Bond |
| 271 | Finance shall be in compliance with the provisions of the State |
| 272 | Bond Act. Bonds issued pursuant to the State Bond Act may shall |
| 273 | be validated in the manner established in chapter 75. The |
| 274 | complaint for such validation shall be filed in the circuit |
| 275 | court of the county where the seat of state government is |
| 276 | situated, the notice required to be published by s. 75.06 shall |
| 277 | be published only in the county where the complaint is filed, |
| 278 | and the complaint and order of the circuit court shall be served |
| 279 | only on the state attorney of the circuit in which the action is |
| 280 | pending. |
| 281 | Section 5. Paragraphs (e) and (k) of subsection (3) of |
| 282 | section 1000.21, Florida Statutes, are amended to read: |
| 283 | 1000.21 Systemwide definitions.--As used in the Florida K- |
| 284 | 20 Education Code: |
| 285 | (3) "Community college," except as otherwise specifically |
| 286 | provided, includes the following institutions and any branch |
| 287 | campuses, centers, or other affiliates of the institution: |
| 288 | (e) Daytona Beach Community College. |
| 289 | (k) Indian River Community College. |
| 290 | Section 6. This act shall take effect July 1, 2008. |