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

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; amending s. 1000.21, F.S.; redesignating

26

Indian River Community College as "Indian River College";

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providing an effective date.

28

29

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

30

31

     Section 1.  Subsections (26) and (38) of section 1001.64,

32

Florida Statutes, are amended to read:

33

     1001.64  Community college boards of trustees; powers and

34

duties.--

35

     (26)  Each board of trustees is authorized to contract for

36

the purchase, sale, lease, license, or acquisition in any manner

37

(including purchase by installment or lease-purchase contract

38

which may provide for the payment of interest on the unpaid

39

portion of the purchase price and for the granting of a security

40

interest in the items purchased, subject to the provisions of

41

subsection (38) and ss. 1009.22 and 1009.23) of goods, materials,

42

equipment, and services required by the community college. The

43

board of trustees may choose to consolidate equipment contracts

44

under master equipment financing agreements made pursuant to s.

45

287.064.

46

     (38) Each board of trustees is authorized to enter into

47

short-term loans and installment, lease-purchase, and other

48

financing contracts for a term of not more than 5 years,

49

including renewals, extensions, and refundings. Payments on

50

short-term loans and installment, lease-purchase, and other

51

financing contracts pursuant to this subsection shall be subject

52

to annual appropriation by the board of trustees. Each board of

53

trustees is authorized to borrow funds and incur long-term debt,

54

including promissory notes, installment sales agreements, lease-

55

purchase agreements, certificates of participation, and other

56

similar long-term financing arrangements, only as specifically

57

provided entering into lease-purchase agreements and the issuance

58

of revenue bonds as specifically authorized and only for the

59

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

60

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

61

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

62

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

63

revenues authorized to be pledged to bonds pursuant to such

64

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

65

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

66

lease-purchase agreements may be secured by a combination of

67

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

68

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 short-

76

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

77

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

78

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

79

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

80

organization. Trustees shall evaluate proposals for debt

81

according to guidelines issued by the Division of Community

82

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

83

debt issued by direct-support 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 separate

97

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

98

improve, or enhance the certificate career education or adult

99

education facilities of the school district or community college.

100

Projects funded through the use of the capital improvement fee

101

must meet the survey and construction requirements of chapter

102

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

103

community college board of trustees shall identify each project,

104

including maintenance projects, proposed to be funded in whole or

105

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

106

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

107

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

108

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

109

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

110

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

111

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

112

construction and equipment, renovation, or remodeling of

113

educational facilities. Bonds authorized pursuant to this

114

paragraph shall be requested by the community college board of

115

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

116

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

117

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

118

collected by one or more community colleges, including capital

119

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

120

such bonds. Any project included in the approved educational

121

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

122

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

123

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

124

Board of Administration to issue any bonds authorized through the

125

provisions of this subsection. Any such bonds issued by the

126

Division of Bond Finance shall be in compliance with the

127

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

128

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

129

provided by chapter 75. The complaint for such validation shall

130

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

131

state government is situated, the notice required to be published

132

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

133

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

134

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

135

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

136

hour may be allocated from the capital improvement fee for child

137

care centers conducted by the district school board or community

138

college board of trustees. The use of capital improvement fees

139

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

140

secured by the fees.

141

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

142

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

143

that will materially and adversely affect the rights of such

144

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

145

outstanding.

146

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

147

school boards are not authorized to charge students enrolled in

148

workforce development programs any fee that is not specifically

149

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

150

financial aid, capital improvement, and technology fees, as

151

authorized in this section, community college boards of trustees

152

and district school boards are authorized to establish fee

153

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

154

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

155

relating to facilities and equipment use or damage; access or

156

identification card fees; duplicating, photocopying, binding, or

157

microfilming fees; standardized testing fees; diploma replacement

158

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

159

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

160

fines shall not exceed the cost of the services provided and

161

shall only be charged to persons receiving the service. Parking

162

fee revenues may be pledged by a community college board of

163

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

164

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

165

more than 7 years, including renewals, extensions, and

166

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

167

years and not exceeding the useful life of the asset being

168

financed. Community colleges shall use the services of the

169

Division of Bond Finance of the State Board of Administration to

170

issue any revenue bonds authorized by the provisions of this

171

paragraph subsection. Any such bonds issued by the Division of

172

Bond Finance shall be in compliance with the provisions of the

173

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

174

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

175

complaint for such validation shall be filed in the circuit court

176

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

177

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

178

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

179

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

180

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

181

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

182

board of trustees may, without using the services or obtaining

183

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

184

revenues to debt, including promissory notes, installment sales

185

agreements, lease-purchase agreements, certificates of

186

participation, and other similar financing arrangements, for an

187

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

188

extensions, refinancings, and refundings, and not exceeding the

189

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

190

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

191

on such debt as determined by reference to the Municipal Market

192

Data yields listing for the debt-rating category most closely

193

comparable to the debt being issued immediately prior to the date

194

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

195

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

196

lower than the rate determined by reference to a nationally

197

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

198

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

199

nationally recognized tax-exempt variable-rate index.

200

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

201

Florida Statutes, are amended to read:

202

     1009.23  Community college student fees.--

203

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

204

establish a separate fee for capital improvements, technology

205

enhancements, or equipping student buildings which may not exceed

206

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

207

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

208

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

209

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

210

community colleges through the fee these fees may be bonded only

211

as provided in this subsection for the purpose of financing or

212

refinancing new construction and equipment, renovation, or

213

remodeling of educational facilities. The fee shall be collected

214

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

215

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

216

improve, or enhance the educational facilities of the community

217

college. Projects funded through the use of the capital

218

improvement fee shall meet the survey and construction

219

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

220

community college shall identify each project, including

221

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

222

by such fee.

223

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

224

board of trustees as a dedicated revenue source to the repayment

225

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

226

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

227

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

228

revenue bonds with a term not exceeding to exceed 20 annual

229

maturities and not exceeding to exceed the useful life of the

230

asset being financed, only for financing or refinancing of the

231

new construction and equipment, renovation, or remodeling of

232

educational facilities. Bonds authorized pursuant to through the

233

provisions of this subsection shall be requested by the community

234

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

235

Bond Finance upon the request of the community college board of

236

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

237

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

238

Bond Finance may pledge fees collected by one or more community

239

colleges, including capital improvement fees collected pursuant

240

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

241

the approved educational plant survey pursuant to chapter 1013 is

242

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

243

Constitution.

244

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

245

subsection may be validated shall be in the manner provided by

246

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

247

validated. The complaint for such validation shall be filed in

248

the circuit court of the county where the seat of state

249

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

250

75.06 shall be published only in the county where the complaint

251

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

252

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

253

action is pending.

254

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

255

capital improvement fee for child care centers conducted by the

256

community college. The use of capital improvement fees for such

257

purpose shall be subordinate to the payment of any bonds secured

258

by the fees.

259

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

260

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

261

action that will materially and adversely affect the rights of

262

such holders so long as the bonds authorized by this subsection

263

are outstanding.

264

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

265

aid, capital improvement, student activity and service, and

266

technology fees authorized in this section, each community

267

college board of trustees is authorized to establish fee

268

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

269

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

270

relating to facilities and equipment use or damage; access or

271

identification card fees; duplicating, photocopying, binding, or

272

microfilming fees; standardized testing fees; diploma replacement

273

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

274

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

275

fines shall not exceed the cost of the services provided and

276

shall only be charged to persons receiving the service. A

277

community college may not charge any fee except as authorized by

278

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

279

revenues may be pledged by a community college board of trustees

280

as a dedicated revenue source for the repayment of debt,

281

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

282

more than 7 years, including renewals, extensions, and

283

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

284

years and not exceeding the useful life of the asset being

285

financed. Community colleges shall use the services of the

286

Division of Bond Finance of the State Board of Administration to

287

issue any revenue bonds authorized by the provisions of this

288

paragraph subsection. Any such bonds issued by the Division of

289

Bond Finance shall be in compliance with the provisions of the

290

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

291

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

292

complaint for such validation shall be filed in the circuit court

293

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

294

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

295

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

296

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

297

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

298

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

299

board of trustees may, without using the services or obtaining

300

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

301

revenues to debt, including promissory notes, installment sales

302

agreements, lease-purchase agreements, certificates of

303

participation, and other similar financing arrangements, for an

304

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

305

extensions, refinancings, and refundings, and not exceeding the

306

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

307

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

308

on such debt as determined by reference to the Municipal Market

309

Data yields listing for the debt-rating category most closely

310

comparable to the debt being issued immediately prior to the date

311

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

312

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

313

lower than the rate determined by reference to a nationally

314

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

315

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

316

nationally recognized tax-exempt variable-rate index.

317

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

318

read:

319

     1011.84  Procedure for determining state financial support

320

and annual apportionment of state funds to each community college

321

district.--The procedure for determining state financial support

322

and the annual apportionment to each community college district

323

authorized to operate a community college under the provisions of

324

s. 1001.61 shall be as follows:

325

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

326

COLLEGE PROGRAM FUND FOR THE CURRENT OPERATING PROGRAM.--

327

     (a)  The Department of Education shall determine annually

328

from an analysis of operating costs, prepared in the manner

329

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

330

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

331

study offered in community colleges. This information and current

332

college operating budgets shall be submitted to the Executive

333

Office of the Governor with the legislative budget request prior

334

to each regular session of the Legislature.

335

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

336

based on advanced and professional disciplines, college-

337

preparatory programs, and other programs for adults funded

338

pursuant to s. 1011.80.

339

     (c)  The category of lifelong learning is for students

340

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

341

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

342

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

343

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

344

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

345

disabled student eligible for an approved educational program for

346

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

347

State Board of Education and is enrolled in a class with

348

curriculum frameworks developed for the program, state funding

349

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

350

student enrolled in a special adult general education program

351

provided by a community college.

352

     (e)  All state inmate education provided by community

353

colleges shall be reported by program, FTE expenditure, and

354

revenue source. These enrollments, expenditures, and revenues

355

shall be reported and projected separately. Instruction of state

356

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

357

enrollment for funding through the Community College Program

358

Fund.

359

     (f)  When a public educational institution has been fully

360

funded by an external agency for direct instructional costs of

361

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

362

for state funding.

363

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

364

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

365

These rules shall provide for the use of the funds available

366

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

367

for operating expense in any fiscal year during which the State

368

Board of Education has determined that all major capital outlay

369

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

370

for purposes other than financing approved capital outlay

371

projects shall be for the proper maintenance and repair of

372

existing facilities for projects approved by the State Board of

373

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

374

source are authorized for operating expense other than approved

375

maintenance and repair projects, the allocation of community

376

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

377

sum used for such operating expense for that community college

378

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

379

among the other community colleges that year.

380

     (2)  DETERMINING THE AMOUNT TO BE INCLUDED FOR CAPITAL

381

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

382

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

383

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

384

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

385

Board of Education rules.

386

     (3) REDUCTION FOR AMOUNTS REQUIRED FOR CAPITAL IMPROVEMENT

387

REVENUE BOND DEBT SERVICE.--

388

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

389

payments with respect to bonds pledging capital improvement fee

390

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

391

payable have not been forwarded to the State Board of

392

Administration as otherwise required by the proceedings

393

authorizing such bonds, the State Board of Administration,

394

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

395

the Department of Education to transmit legally available funds

396

remaining in the Community College Program Fund appropriated to

397

the community college that has insufficient capital improvement

398

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

399

such purpose.

400

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

401

appropriate funds pursuant to this subsection. Such funds are

402

available only to the extent appropriated, and nothing in this

403

subsection constitutes a pledge of the state to continue such

404

appropriations.

405

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

406

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

407

Education shall estimate the annual enrollment of each community

408

college for the current fiscal year and for the 6 subsequent

409

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

410

enrollments, upon the initial fall term enrollments for the

411

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

412

estimated current enrollment and demographic changes in the

413

respective community college districts.

414

     (b)  The apportionment to each community college from the

415

Community College Program Fund shall be determined annually in

416

the General Appropriations Act. In determining each college's

417

apportionment, the Legislature shall consider the following

418

components:

419

     1.  Base budget, which includes the state appropriation to

420

the Community College Program Fund in the current year plus the

421

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

422

current General Appropriations Act.

423

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

424

incremental changes to the base budget, including salaries, price

425

levels, and other related costs allocated through a funding model

426

approved by the Legislature which may recognize differing

427

economic factors arising from the individual educational

428

approaches of the various community colleges, including, but not

429

limited to:

430

     a.  Direct Instructional Funding, including class size,

431

faculty productivity factors, average faculty salary, ratio of

432

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

433

factors.

434

     b.  Academic Support, including small colleges factor,

435

multicampus factor, and enrollment factor.

436

     c.  Student Services Support, including headcount of

437

students as well as FTE count and enrollment factors.

438

     d.  Library Support, including volume and other

439

materials/audiovisual requirements.

440

     e.  Special Projects.

441

     f.  Operations and Maintenance of Plant, including square

442

footage and utilization factors.

443

     g.  District Cost Differential.

444

     3.  Students enrolled in a recreation and leisure program

445

and students enrolled in a lifelong learning program who may not

446

be counted as full-time equivalent enrollments for purposes of

447

enrollment workload adjustments.

448

     4.  Operating costs of new facilities adjustments, which

449

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

450

that is owned by the college and is recommended in accordance

451

with s. 1013.31.

452

     5.  New and improved program enhancements, which shall be

453

determined by the Legislature.

454

455

Student fees in the base budget plus student fee revenues

456

generated by increases in fee rates shall be deducted from the

457

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

458

amount remaining shall be the net annual state apportionment to

459

each college.

460

     (c)  No community college shall commit funds for the

461

employment of personnel or resources in excess of those required

462

to continue the same level of support for either the previously

463

approved enrollment or the revised enrollment, whichever is

464

lower.

465

     (d)  The apportionment to each community college district

466

for capital outlay and debt service shall be the amount

467

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

468

any amount determined as necessary for administrative expense by

469

the State Board of Education and any amount necessary for debt

470

service on bonds issued by the State Board of Education pursuant

471

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

472

shall be transmitted to the community college board of trustees

473

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

474

of Education.

475

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

476

fund of the community college board of trustees approved

477

operating budget goes below 5 percent, the president shall

478

provide written notification to the State Board of Education.

479

     (f)  Expenditures for apprenticeship programs shall be

480

reported separately.

481

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

482

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.  Paragraph (k) of subsection (3) of section

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1000.21, Florida Statutes, is amended to read:

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     1000.21  Systemwide definitions.--As used in the Florida K-

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20 Education Code:

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     (3)  "Community college," except as otherwise specifically

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provided, includes the following institutions and any branch

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campuses, centers, or other affiliates of the institution:

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     (k) Indian River Community College.

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     Section 7.  This act shall take effect July 1, 2008.