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

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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;

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providing restrictions; amending s. 1009.22, F.S.,

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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

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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;

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revising provisions relating to validation of bonds;

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providing for limitation of actions; amending s. 1011.84,

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F.S.; correcting references; providing for transmittal of

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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, materials,

41

equipment, and services required by the community college. The

42

board of trustees may choose to consolidate equipment contracts

43

under master equipment financing agreements made pursuant to s.

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287.064.

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     (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

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similar long-term financing arrangements, only as specifically

56

provided entering into lease-purchase agreements and the issuance

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of revenue bonds as specifically authorized and only for the

58

purposes authorized in ss. 1009.22(6) and (9), and 1009.23(11)

59

and (12), and 215.61(1). At the option of the board of trustees,

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bonds issued pursuant to ss. 1009.22(6) and (9) and 1009.23(11)

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and (12) may be issued which are secured by a combination of

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revenues authorized to be pledged to bonds pursuant to such

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subsections ss. 1009.22(6) and 1009.23(11) or ss. 1009.22(9) and

64

1009.23(12). Notwithstanding the provisions of this subsection,

65

lease-purchase agreements may be secured by a combination of

66

revenues as specifically authorized pursuant to ss. 1009.22(7)

67

and 1009.23(10).

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     Section 2.  Paragraph (e) is added to subsection (4) of

69

section 1004.70, Florida Statutes, to read:

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     1004.70  Community college direct-support organizations.--

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     (4)  ACTIVITIES; RESTRICTIONS.--

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     (e) A community college board of trustees must authorize

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all debt, including lease-purchase agreements, incurred by a

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direct-support organization. Authorization for approval of short-

75

term loans and lease-purchase agreements for a term of not more

76

than 5 years, including renewals, extensions, and refundings, for

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goods, materials, equipment, and services may be delegated by the

78

board of trustees to the board of directors of the direct-support

79

organization. Trustees shall evaluate proposals for debt

80

according to guidelines issued by the Division of Community

81

Colleges. Revenues of the community college may not be pledged to

82

debt issued by direct-support organizations.

83

     Section 3.  Subsections (6) and (9) of section 1009.22,

84

Florida Statutes, are amended to read:

85

     1009.22  Workforce education postsecondary student fees.--

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     (6)(a) Each district school board and community college

87

board of trustees may establish a separate fee for capital

88

improvements, technology enhancements, or equipping buildings

89

which may not exceed 5 percent of tuition for resident students

90

or 5 percent of tuition and out-of-state fees for nonresident

91

students. Funds collected by community colleges through the fee

92

these fees may be bonded only for the purpose of financing or

93

refinancing new construction and equipment, renovation, or

94

remodeling of educational facilities. The fee shall be collected

95

as a component part of the tuition and fees, paid into a separate

96

account, and expended only to construct and equip, maintain,

97

improve, or enhance the certificate career education or adult

98

education facilities of the school district or community college.

99

Projects funded through the use of the capital improvement fee

100

must meet the survey and construction requirements of chapter

101

1013. Pursuant to s. 216.0158, each district school board and

102

community college board of trustees shall identify each project,

103

including maintenance projects, proposed to be funded in whole or

104

in part by such fee. Capital improvement fee revenues may be

105

pledged by a board of trustees as a dedicated revenue source to

106

the repayment of debt, including lease-purchase agreements, with

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an overall term of not more than 7 years, including renewals,

108

extensions, and refundings, and revenue bonds, with a term not

109

exceeding to exceed 20 years, and not exceeding to exceed the

110

useful life of the asset being financed, only for the new

111

construction and equipment, renovation, or remodeling of

112

educational facilities. Bonds authorized pursuant to this

113

paragraph shall be requested by the community college board of

114

trustees and shall be issued by the Division of Bond Finance in

115

compliance with s. 11(d), Art. VII of the State Constitution and

116

the State Bond Act. The Division of Bond Finance may pledge fees

117

collected by one or more community colleges, including capital

118

improvement fees collected pursuant to s. 1009.23(11), to secure

119

such bonds. Any project included in the approved educational

120

plant survey pursuant to chapter 1013 is approved pursuant to s.

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11(f), Art. VII of the State Constitution. Community colleges may

122

use the services of the Division of Bond Finance of the State

123

Board of Administration to issue any bonds authorized through the

124

provisions of this subsection. Any such bonds issued by the

125

Division of Bond Finance shall be in compliance with the

126

provisions of the State Bond Act. Bonds issued pursuant to this

127

paragraph may the State Bond Act shall be validated in the manner

128

provided by chapter 75. The complaint for such validation shall

129

be filed in the circuit court of the county where the seat of

130

state government is situated, the notice required to be published

131

by s. 75.06 shall be published only in the county where the

132

complaint is filed, and the complaint and order of the circuit

133

court shall be served only on the state attorney of the circuit

134

in which the action is pending. A maximum of 15 cents per credit

135

hour may be allocated from the capital improvement fee for child

136

care centers conducted by the district school board or community

137

college board of trustees. The use of capital improvement fees

138

for such purpose shall be subordinate to the payment of any bonds

139

secured by the fees.

140

     (b) The state does hereby covenant with the holders of the

141

bonds issued under paragraph (a) that it will not take any action

142

that will materially and adversely affect the rights of such

143

holders so long as the bonds authorized by paragraph (a) are

144

outstanding.

145

     (9)(a) Community college boards of trustees and district

146

school boards are not authorized to charge students enrolled in

147

workforce development programs any fee that is not specifically

148

authorized by statute. In addition to tuition, out-of-state,

149

financial aid, capital improvement, and technology fees, as

150

authorized in this section, community college boards of trustees

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and district school boards are authorized to establish fee

152

schedules for the following user fees and fines: laboratory fees;

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parking fees and fines; library fees and fines; fees and fines

154

relating to facilities and equipment use or damage; access or

155

identification card fees; duplicating, photocopying, binding, or

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microfilming fees; standardized testing fees; diploma replacement

157

fees; transcript fees; application fees; graduation fees; and

158

late fees related to registration and payment. Such user fees and

159

fines shall not exceed the cost of the services provided and

160

shall only be charged to persons receiving the service. Parking

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fee revenues may be pledged by a community college board of

162

trustees as a dedicated revenue source for the repayment of debt,

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including lease-purchase agreements, with an overall term of not

164

more than 7 years, including renewals, extensions, and

165

refundings, and revenue bonds with a term terms not exceeding 20

166

years and not exceeding the useful life of the asset being

167

financed. Community colleges shall use the services of the

168

Division of Bond Finance of the State Board of Administration to

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issue any revenue bonds authorized by the provisions of this

170

paragraph subsection. Any such bonds issued by the Division of

171

Bond Finance shall be in compliance with the provisions of the

172

State Bond Act. Bonds issued pursuant to the State Bond Act may

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shall be validated in the manner established in chapter 75. The

174

complaint for such validation shall be filed in the circuit court

175

of the county where the seat of state government is situated, the

176

notice required to be published by s. 75.06 shall be published

177

only in the county where the complaint is filed, and the

178

complaint and order of the circuit court shall be served only on

179

the state attorney of the circuit in which the action is pending.

180

     (b) As provided in this paragraph, a community college

181

board of trustees may, without using the services or obtaining

182

the approval of the Division of Bond Finance, pledge parking fee

183

revenues to debt, including promissory notes, installment sales

184

agreements, lease-purchase agreements, certificates of

185

participation, and other similar financing arrangements, for an

186

overall term of not more than 20 years, including renewals,

187

extensions, refinancings, and refundings, and not exceeding the

188

useful life of the asset being financed as long as the interest

189

rate on any fixed-rate financing is lower than the interest rate

190

on such debt as determined by reference to the Municipal Market

191

Data yields listing for the debt-rating category most closely

192

comparable to the debt being issued immediately prior to the date

193

such interest rate on the debt is set. If the Municipal Market

194

Data yields are no longer available, the interest rate shall be

195

lower than the rate determined by reference to a nationally

196

recognized tax-exempt benchmark interest-rate index. The interest

197

rate on any variable-rate financing must be lower than that of a

198

nationally recognized tax-exempt variable-rate index.

199

     Section 4.  Subsections (11) and (12) of section 1009.23,

200

Florida Statutes, are amended to read:

201

     1009.23  Community college student fees.--

202

     (11)(a)  Each community college board of trustees may

203

establish a separate fee for capital improvements, technology

204

enhancements, or equipping student buildings which may not exceed

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10 percent of tuition for resident students or 10 percent of the

206

sum of tuition and out-of-state fees for nonresident students.

207

The fee for resident students shall be limited to an increase of

208

$2 per credit hour over the prior year. Funds collected by

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community colleges through the fee these fees may be bonded only

210

as provided in this subsection for the purpose of financing or

211

refinancing new construction and equipment, renovation, or

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remodeling of educational facilities. The fee shall be collected

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as a component part of the tuition and fees, paid into a separate

214

account, and expended only to construct and equip, maintain,

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improve, or enhance the educational facilities of the community

216

college. Projects funded through the use of the capital

217

improvement fee shall meet the survey and construction

218

requirements of chapter 1013. Pursuant to s. 216.0158, each

219

community college shall identify each project, including

220

maintenance projects, proposed to be funded in whole or in part

221

by such fee.

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     (b)  Capital improvement fee revenues may be pledged by a

223

board of trustees as a dedicated revenue source to the repayment

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of debt, including lease-purchase agreements, with an overall

225

term, including renewals, extensions, and refundings, of not more

226

than 7 years, including renewals, extensions, and refundings, and

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revenue bonds with a term not exceeding to exceed 20 annual

228

maturities and not exceeding to exceed the useful life of the

229

asset being financed, only for financing or refinancing of the

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new construction and equipment, renovation, or remodeling of

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educational facilities. Bonds authorized pursuant to through the

232

provisions of this subsection shall be requested by the community

233

college board of trustees and shall be issued by the Division of

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Bond Finance upon the request of the community college board of

235

trustees in compliance with the provisions of s. 11(d), Art. VII

236

of the State Constitution and the State Bond Act. The Division of

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Bond Finance may pledge fees collected by one or more community

238

colleges, including capital improvement fees collected pursuant

239

to s. 1009.22(6), to secure such bonds. Any project included in

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the approved educational plant survey pursuant to chapter 1013 is

241

approved pursuant to s. 11(f)(d), Art. VII of the State

242

Constitution.

243

     (c)(d) Any validation of the Bonds issued pursuant to this

244

subsection may be validated shall be in the manner provided by

245

chapter 75. Only the initial series of bonds is required to be

246

validated. The complaint for such validation shall be filed in

247

the circuit court of the county where the seat of state

248

government is situated, the notice required to be published by s.

249

75.06 shall be published only in the county where the complaint

250

is filed, and the complaint and order of the circuit court shall

251

be served only on the state attorney of the circuit in which the

252

action is pending.

253

     (d)(e) A maximum of 15 percent may be allocated from the

254

capital improvement fee for child care centers conducted by the

255

community college. The use of capital improvement fees for such

256

purpose shall be subordinate to the payment of any bonds secured

257

by the fees.

258

     (e)(c) The state does hereby covenant with the holders of

259

the bonds issued under this subsection that it will not take any

260

action that will materially and adversely affect the rights of

261

such holders so long as the bonds authorized by this subsection

262

are outstanding.

263

     (12)(a) In addition to tuition, out-of-state, financial

264

aid, capital improvement, student activity and service, and

265

technology fees authorized in this section, each community

266

college board of trustees is authorized to establish fee

267

schedules for the following user fees and fines: laboratory fees;

268

parking fees and fines; library fees and fines; fees and fines

269

relating to facilities and equipment use or damage; access or

270

identification card fees; duplicating, photocopying, binding, or

271

microfilming fees; standardized testing fees; diploma replacement

272

fees; transcript fees; application fees; graduation fees; and

273

late fees related to registration and payment. Such user fees and

274

fines shall not exceed the cost of the services provided and

275

shall only be charged to persons receiving the service. A

276

community college may not charge any fee except as authorized by

277

law or rules of the State Board of Education. Parking fee

278

revenues may be pledged by a community college board of trustees

279

as a dedicated revenue source for the repayment of debt,

280

including lease-purchase agreements, with an overall term of not

281

more than 7 years, including renewals, extensions, and

282

refundings, and revenue bonds with a term terms not exceeding 20

283

years and not exceeding the useful life of the asset being

284

financed. Community colleges shall use the services of the

285

Division of Bond Finance of the State Board of Administration to

286

issue any revenue bonds authorized by the provisions of this

287

paragraph subsection. Any such bonds issued by the Division of

288

Bond Finance shall be in compliance with the provisions of the

289

State Bond Act. Bonds issued pursuant to the State Bond Act may

290

shall be validated in the manner established in chapter 75. The

291

complaint for such validation shall be filed in the circuit court

292

of the county where the seat of state government is situated, the

293

notice required to be published by s. 75.06 shall be published

294

only in the county where the complaint is filed, and the

295

complaint and order of the circuit court shall be served only on

296

the state attorney of the circuit in which the action is pending.

297

     (b) As provided in this paragraph, a community college

298

board of trustees may, without using the services or obtaining

299

the approval of the Division of Bond Finance, pledge parking fee

300

revenues to debt, including promissory notes, installment sales

301

agreements, lease-purchase agreements, certificates of

302

participation, and other similar financing arrangements, for an

303

overall term of not more than 20 years, including renewals,

304

extensions, refinancings, and refundings, and not exceeding the

305

useful life of the asset being financed as long as the interest

306

rate on any fixed-rate financing is lower than the interest rate

307

on such debt as determined by reference to the Municipal Market

308

Data yields listing for the debt-rating category most closely

309

comparable to the debt being issued immediately prior to the date

310

such interest rate on the debt is set. If the Municipal Market

311

Data yields are no longer available, the interest rate shall be

312

lower than the rate determined by reference to a nationally

313

recognized tax-exempt benchmark interest-rate index. The interest

314

rate on any variable-rate financing must be lower than that of a

315

nationally recognized tax-exempt variable-rate index.

316

     Section 5.  Section 1011.84, Florida Statutes, is amended to

317

read:

318

     1011.84  Procedure for determining state financial support

319

and annual apportionment of state funds to each community college

320

district.--The procedure for determining state financial support

321

and the annual apportionment to each community college district

322

authorized to operate a community college under the provisions of

323

s. 1001.61 shall be as follows:

324

     (1)  DETERMINING THE AMOUNT TO BE INCLUDED IN THE COMMUNITY

325

COLLEGE PROGRAM FUND FOR THE CURRENT OPERATING PROGRAM.--

326

     (a)  The Department of Education shall determine annually

327

from an analysis of operating costs, prepared in the manner

328

prescribed by rules of the State Board of Education, the costs

329

per full-time equivalent student served in courses and fields of

330

study offered in community colleges. This information and current

331

college operating budgets shall be submitted to the Executive

332

Office of the Governor with the legislative budget request prior

333

to each regular session of the Legislature.

334

     (b)  The allocation of funds for community colleges shall be

335

based on advanced and professional disciplines, college-

336

preparatory programs, and other programs for adults funded

337

pursuant to s. 1011.80.

338

     (c)  The category of lifelong learning is for students

339

enrolled pursuant to s. 1004.93. A student shall also be reported

340

as a lifelong learning student for his or her enrollment in any

341

course that he or she has previously taken, unless it is a credit

342

course in which the student earned a grade of D or F.

343

     (d)  If an adult student has been determined to be a

344

disabled student eligible for an approved educational program for

345

disabled adults provided pursuant to s. 1004.93 and rules of the

346

State Board of Education and is enrolled in a class with

347

curriculum frameworks developed for the program, state funding

348

for that student shall be provided at a level double that of a

349

student enrolled in a special adult general education program

350

provided by a community college.

351

     (e)  All state inmate education provided by community

352

colleges shall be reported by program, FTE expenditure, and

353

revenue source. These enrollments, expenditures, and revenues

354

shall be reported and projected separately. Instruction of state

355

inmates shall not be included in the full-time equivalent student

356

enrollment for funding through the Community College Program

357

Fund.

358

     (f)  When a public educational institution has been fully

359

funded by an external agency for direct instructional costs of

360

any course or program, the FTE generated shall not be reported

361

for state funding.

362

     (g)  The State Board of Education shall adopt rules to

363

implement s. 9(d)(8)g.f., Art. XII of the State Constitution.

364

These rules shall provide for the use of the funds available

365

under s. 9(d)(8)g.f., Art. XII by an individual community college

366

for operating expense in any fiscal year during which the State

367

Board of Education has determined that all major capital outlay

368

needs have been met. Highest priority for the use of these funds

369

for purposes other than financing approved capital outlay

370

projects shall be for the proper maintenance and repair of

371

existing facilities for projects approved by the State Board of

372

Education. However, in any fiscal year in which funds from this

373

source are authorized for operating expense other than approved

374

maintenance and repair projects, the allocation of community

375

college program funds shall be reduced by an amount equal to the

376

sum used for such operating expense for that community college

377

that year, and that amount shall not be released or allocated

378

among the other community colleges that year.

379

     (2)  DETERMINING THE AMOUNT TO BE INCLUDED FOR CAPITAL

380

OUTLAY AND DEBT SERVICE.--The amount included for capital outlay

381

and debt service shall be as determined and provided in s. 18,

382

Art. XII of the State Constitution of 1885, as adopted by s.

383

9(d), Art. XII of the 1968 revised State Constitution and State

384

Board of Education rules.

385

     (3) REDUCTION FOR AMOUNTS REQUIRED FOR CAPITAL IMPROVEMENT

386

REVENUE BOND DEBT SERVICE.--

387

     (a) If amounts sufficient to fully fund all debt service

388

payments with respect to bonds pledging capital improvement fee

389

revenues under s. 1009.22 or s. 1009.23 which have become due and

390

payable have not been forwarded to the State Board of

391

Administration as otherwise required by the proceedings

392

authorizing such bonds, the State Board of Administration,

393

pursuant to its powers and duties under s. 215.69, shall direct

394

the Department of Education to transmit legally available funds

395

remaining in the Community College Program Fund appropriated to

396

the community college that has insufficient capital improvement

397

fees to pay debt service to the State Board of Administration for

398

such purpose. The Department of Education may adopt rules to

399

allocate such debt service liability among the community

400

colleges.

401

     (b) A community college may not obligate the state to

402

appropriate funds pursuant to this subsection. Such funds are

403

available only to the extent appropriated, and nothing in this

404

subsection constitutes a pledge of the state to continue such

405

appropriations.

406

     (4)(3) DETERMINING THE APPORTIONMENT FROM STATE FUNDS.--

407

     (a)  By December 15 of each year, the Department of

408

Education shall estimate the annual enrollment of each community

409

college for the current fiscal year and for the 6 subsequent

410

fiscal years. These estimates shall be based upon prior years'

411

enrollments, upon the initial fall term enrollments for the

412

current fiscal year for each college, and upon each college's

413

estimated current enrollment and demographic changes in the

414

respective community college districts.

415

     (b)  The apportionment to each community college from the

416

Community College Program Fund shall be determined annually in

417

the General Appropriations Act. In determining each college's

418

apportionment, the Legislature shall consider the following

419

components:

420

     1.  Base budget, which includes the state appropriation to

421

the Community College Program Fund in the current year plus the

422

related student tuition and out-of-state fees assigned in the

423

current General Appropriations Act.

424

     2.  The cost-to-continue allocation, which consists of

425

incremental changes to the base budget, including salaries, price

426

levels, and other related costs allocated through a funding model

427

approved by the Legislature which may recognize differing

428

economic factors arising from the individual educational

429

approaches of the various community colleges, including, but not

430

limited to:

431

     a.  Direct Instructional Funding, including class size,

432

faculty productivity factors, average faculty salary, ratio of

433

full-time to part-time faculty, costs of programs, and enrollment

434

factors.

435

     b.  Academic Support, including small colleges factor,

436

multicampus factor, and enrollment factor.

437

     c.  Student Services Support, including headcount of

438

students as well as FTE count and enrollment factors.

439

     d.  Library Support, including volume and other

440

materials/audiovisual requirements.

441

     e.  Special Projects.

442

     f.  Operations and Maintenance of Plant, including square

443

footage and utilization factors.

444

     g.  District Cost Differential.

445

     3.  Students enrolled in a recreation and leisure program

446

and students enrolled in a lifelong learning program who may not

447

be counted as full-time equivalent enrollments for purposes of

448

enrollment workload adjustments.

449

     4.  Operating costs of new facilities adjustments, which

450

shall be provided, from funds available, for each new facility

451

that is owned by the college and is recommended in accordance

452

with s. 1013.31.

453

     5.  New and improved program enhancements, which shall be

454

determined by the Legislature.

455

456

Student fees in the base budget plus student fee revenues

457

generated by increases in fee rates shall be deducted from the

458

sum of the components determined in subparagraphs 1.-5. The

459

amount remaining shall be the net annual state apportionment to

460

each college.

461

     (c)  No community college shall commit funds for the

462

employment of personnel or resources in excess of those required

463

to continue the same level of support for either the previously

464

approved enrollment or the revised enrollment, whichever is

465

lower.

466

     (d)  The apportionment to each community college district

467

for capital outlay and debt service shall be the amount

468

determined in accordance with subsection (2). This amount, less

469

any amount determined as necessary for administrative expense by

470

the State Board of Education and any amount necessary for debt

471

service on bonds issued by the State Board of Education pursuant

472

to s. 9(d), Art. XII of the 1968 revised State Constitution,

473

shall be transmitted to the community college board of trustees

474

to be expended in a manner prescribed by rules of the State Board

475

of Education.

476

     (e)  If at any time the unencumbered balance in the general

477

fund of the community college board of trustees approved

478

operating budget goes below 5 percent, the president shall

479

provide written notification to the State Board of Education.

480

     (f)  Expenditures for apprenticeship programs shall be

481

reported separately.

482

     (5)(4) EXPENDITURE OF ALLOCATED FUNDS.--Subject to the

483

provisions of subsection (3), any funds allocated herein to any

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community college shall be expended only for the purpose of

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supporting that community college.

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     (6)(5) REPORT OF REMEDIAL EDUCATION.--Each community

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college board of trustees shall report the volume and cost of

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remedial education activities as a separate item in its annual

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cost accounting system.

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     Section 6.  This act shall take effect July 1, 2008.