Florida Senate - 2009              PROPOSED COMMITTEE SUBSTITUTE
       Bill No. SB 1696
       
       
       
       
       
                                Barcode 394972                          
       
       605-02393E-09                                                   
       Proposed Committee Substitute by the Committee on Higher
       Education Appropriations
    1                        A bill to be entitled                      
    2         An act relating to higher education funding; amending
    3         s. 216.136, F.S.; requiring the Education Estimating
    4         Conference to develop information relating to the
    5         national average of tuition and fees; amending s.
    6         1001.64, F.S.; prohibiting a community college board
    7         of trustees from entering into an employment contract
    8         that requires the community college to pay the
    9         president an amount from state funds in excess of 1
   10         year of the president’s annual salary for termination,
   11         buy-out, or any other type of contract settlement;
   12         providing that the payment of leave and benefits
   13         accrued by the president before the contract
   14         terminates is not prohibited; limiting the
   15         remuneration that a community college president
   16         receives annually from state funds; providing a
   17         definition for the term “remuneration”; limiting the
   18         president’s compensation that is used to calculate
   19         benefits under ch. 121, F.S.; amending s. 1001.706,
   20         F.S.; prohibiting the Board of Governors from entering
   21         into an employment contract that requires the board to
   22         pay an employee an amount from state funds in excess
   23         of 1 year of the employee’s annual salary for
   24         termination, buy-out, or any other type of contract
   25         settlement; providing that the payment of leave and
   26         benefits accrued by the employee before the contract
   27         terminates is not prohibited; amending s. 1001.74,
   28         F.S.; prohibiting a university board of trustees from
   29         entering into an employment contract that requires the
   30         university to pay an employee an amount from state
   31         funds in excess of 1 year of the employee’s annual
   32         salary for termination, buy-out, or any other type of
   33         contract settlement; providing that the payment of
   34         leave and benefits accrued by the employee before the
   35         contract terminates is not prohibited; amending s.
   36         1007.33, F.S.; suspending the authorization for a
   37         community college or the State Board of Education to
   38         develop new community college baccalaureate degree
   39         programs during the 2009-2010 fiscal year; amending s.
   40         1009.01, F.S.; revising the definition of the term
   41         “tuition differential”; amending s. 1009.21, F.S.;
   42         revising definitions; defining the terms “initial
   43         enrollment” and “nonresident for tuition purposes”;
   44         revising provisions relating to the qualifications as
   45         a resident for tuition purposes; requiring certain
   46         documentation to demonstrate state residency; amending
   47         s. 1009.24, F.S.; increasing the maximum percentage of
   48         adjustments that a state university is permitted to
   49         make to out-of-state fees or tuition for graduate
   50         programs; revising provisions relating to the use of
   51         the student financial aid fee; deleting obsolete
   52         provisions; revising provisions relating to the
   53         establishment of a tuition differential; providing
   54         requirements for the assessment and expenditure of a
   55         tuition differential; providing requirements for a
   56         university board of trustees to submit a proposal to
   57         the Board of Governors to implement a tuition
   58         differential; requiring the Board of Governors’ review
   59         and approval of a proposal; requiring the Board of
   60         Governors to report specified information annually to
   61         the Legislature and the Governor; creating s.
   62         1009.286, F.S.; requiring an additional payment for
   63         credit hours exceeding the requirements for completing
   64         a baccalaureate degree program; providing exceptions;
   65         requiring notice upon a student’s initial enrollment
   66         in a state university or community college; amending
   67         s. 1009.53, F.S.; requiring that an institution refund
   68         within a specified period after the end of a semester
   69         funds from the Florida Bright Futures Scholarship for
   70         courses dropped by students after the end of the drop
   71         and add period; providing exceptions; amending s.
   72         1009.532, F.S.; revising the requirements for student
   73         eligibility to renew a scholarship under the Florida
   74         Bright Futures Scholarship Program; amending s.
   75         1009.534, F.S.; revising provisions relating to the
   76         Florida Academic Scholars Award; amending s. 1009.536,
   77         F.S.; deleting a provision that allows a Florida Gold
   78         Seal Scholar to apply for a Florida Medallion Scholars
   79         award; amending ss. 1009.57, 1009.58, 1009.59,
   80         1009.60, and 1009.605, F.S.; revising provisions
   81         relating to the Florida Teacher Scholarship and
   82         Forgivable Loan Program, the Critical Teacher Shortage
   83         Student Loan Forgiveness Program, the minority teacher
   84         education scholars program, and the Florida Fund for
   85         Minority Teachers, Inc.; requiring that the amount of
   86         scholarships awarded under such programs be prorated
   87         based on available appropriations and not exceed
   88         specified amounts; amending s. 1009.701, F.S.;
   89         requiring that an applicant under the First Generation
   90         Matching Grant Program meet the same eligibility
   91         requirements required under the Florida Public Student
   92         Assistance Grant Program; repealing s. 1009.765, F.S.,
   93         relating to Ethics in Business scholarships for
   94         community colleges and independent postsecondary
   95         educational institutions; amending s. 1009.98, F.S.;
   96         revising provisions relating to the prepaid community
   97         college and university plans; authorizing the Florida
   98         Prepaid College Board to offer an advance payment
   99         contract covering certain fees for such plans;
  100         providing definitions regarding payments on behalf of
  101         qualified beneficiaries of an advance payment
  102         contract; providing the amounts of fees to be paid by
  103         the board; providing an exemption for certain
  104         qualified beneficiaries from paying any tuition
  105         differential fee; requiring that the board pay state
  106         universities the actual amount assessed for
  107         registration fees and tuition differential fees for
  108         certain advanced payment contracts; requiring that the
  109         board pay state universities the actual amount
  110         assessed for local fees and dormitory fees; requiring
  111         that the board pay community colleges and career
  112         centers the actual amount assessed for registration
  113         fees and local fees; amending s. 1011.83, F.S.;
  114         revising provisions relating to financial support of
  115         community colleges; providing for state funding of
  116         baccalaureate degree programs in the General
  117         Appropriations Act; requiring that the Board of
  118         Governors review a community college’s baccalaureate
  119         degree programs for possible transfer under the Board
  120         of Governors’ oversight if the community college
  121         offers more than a specified number of baccalaureate
  122         degrees; amending ss. 1011.32, 1011.85, and 1011.94,
  123         F.S.; requiring that donors be notified of a delay in
  124         the availability of state matching funds for the
  125         Community College Facility Enhancement Challenge Grant
  126         Program, the Dr. Philip Benjamin Matching Grant
  127         Program for Community Colleges, and the University
  128         Major Gifts Program; amending s. 1012.83, F.S.;
  129         conforming provisions relating to contracts with
  130         community college administrative and instructional
  131         staff to changes made by the act; amending s. 1013.79,
  132         F.S.; providing that a university is not precluded
  133         from expending funds from private sources to develop a
  134         prospectus; requiring that donors be notified of a
  135         delay in the availability of state matching funds for
  136         the University Facility Enhancement Challenge Grant
  137         Program; providing an effective date.
  138  
  139  Be It Enacted by the Legislature of the State of Florida:
  140  
  141         Section 1. Paragraph (a) of subsection (4) of section
  142  216.136, Florida Statutes, is amended to read:
  143         216.136 Consensus estimating conferences; duties and
  144  principals.—
  145         (4) EDUCATION ESTIMATING CONFERENCE.—
  146         (a) The Education Estimating Conference shall develop such
  147  official information relating to the state public and private
  148  educational system, including forecasts of student enrollments,
  149  the national average of tuition and fees at public postsecondary
  150  educational institutions, the number of students qualified for
  151  state financial aid programs and for the William L. Boyd, IV,
  152  Florida Resident Access Grant Program and the appropriation
  153  required to fund the full award amounts for each program, fixed
  154  capital outlay needs, and Florida Education Finance Program
  155  formula needs, as the conference determines is needed for the
  156  state planning and budgeting system. The conference’s initial
  157  projections of enrollments in public schools shall be forwarded
  158  by the conference to each school district no later than 2 months
  159  prior to the start of the regular session of the Legislature.
  160  Each school district may, in writing, request adjustments to the
  161  initial projections. Any adjustment request shall be submitted
  162  to the conference no later than 1 month prior to the start of
  163  the regular session of the Legislature and shall be considered
  164  by the principals of the conference. A school district may amend
  165  its adjustment request, in writing, during the first 3 weeks of
  166  the legislative session, and such amended adjustment request
  167  shall be considered by the principals of the conference. For any
  168  adjustment so requested, the district shall indicate and
  169  explain, using definitions adopted by the conference, the
  170  components of anticipated enrollment changes that correspond to
  171  continuation of current programs with workload changes; program
  172  improvement; program reduction or elimination; initiation of new
  173  programs; and any other information that may be needed by the
  174  Legislature. For public schools, the conference shall submit its
  175  full-time equivalent student consensus estimate to the
  176  Legislature no later than 1 month after the start of the regular
  177  session of the Legislature. No conference estimate may be
  178  changed without the agreement of the full conference.
  179         Section 2. Subsections (47) and (48) are added to section
  180  1001.64, Florida Statutes, to read:
  181         1001.64 Community college boards of trustees; powers and
  182  duties.—
  183         (47)A board of trustees may not enter into an employment
  184  contract that requires the community college to pay a community
  185  college president an amount from state funds in excess of 1 year
  186  of the president’s annual salary for termination, buy-out, or
  187  any other type of contract settlement. This subsection does not
  188  prohibit the payment of leave and benefits accrued by the
  189  president in accordance with the community college’s leave and
  190  benefits policies before the contract terminates.
  191         (48)Notwithstanding any other law, resolution, or rule to
  192  the contrary, a community college president may not receive more
  193  than $225,000 in remuneration annually from state funds. As used
  194  in this subsection, the term “remuneration” means salary,
  195  bonuses, and cash-equivalent compensation paid to a community
  196  college president by his or her employer for work performed,
  197  excluding health insurance benefits and retirement benefits.
  198  Only compensation, as defined in s. 121.021(22), which is
  199  provided to a community college president may be used in
  200  calculating benefits under chapter 121.
  201         Section 3. Paragraph (d) is added to subsection (5) of
  202  section 1001.706, Florida Statutes, to read:
  203         1001.706 Powers and duties of the Board of Governors.—
  204         (5) POWERS AND DUTIES RELATING TO PERSONNEL.—
  205         (d)The Board of Governors may not enter into an employment
  206  contract that requires the board to pay an employee an amount
  207  from state funds in excess of 1 year of the employee’s annual
  208  salary for termination, buy-out, or any other type of contract
  209  settlement. This subsection does not prohibit the payment of
  210  leave and benefits accrued by the employee in accordance with
  211  the board’s leave and benefits policies before the contract
  212  terminates.
  213         Section 4. Paragraph (d) is added to subsection (5) of
  214  section 1001.74, Florida Statutes, to read:
  215         1001.74 Powers and duties of university boards of
  216  trustees.—
  217         (5) POWERS AND DUTIES RELATING TO PERSONNEL.—
  218         (d)A board of trustees may not enter into an employment
  219  contract that requires the university to pay an employee an
  220  amount from state funds in excess of 1 year of the employee’s
  221  annual salary for termination, buy-out, or any other type of
  222  contract settlement. This subsection does not prohibit the
  223  payment of leave and benefits accrued by the employee in
  224  accordance with the university’s leave and benefits policies
  225  before the contract terminates.
  226         Section 5. Subsection (5) is added to section 1007.33,
  227  Florida Statutes, to read:
  228         1007.33 Site-determined baccalaureate degree access.—
  229         (5)The authorization provided in this section, and any
  230  other state law, for a community college or the State Board of
  231  Education to develop new community college baccalaureate degree
  232  programs, is suspended during the 2009-2010 fiscal year.
  233         Section 6. Subsection (3) of section 1009.01, Florida
  234  Statutes, is amended to read:
  235         1009.01 Definitions.—The term:
  236         (3) “Tuition differential” means the supplemental fee
  237  charged to a student for instruction provided by a public
  238  university in this state pursuant to s. 1009.24(16).
  239         Section 7. Subsections (1), (2), (3), and (4) and paragraph
  240  (d) of subsection (10) of section 1009.21, Florida Statutes, are
  241  amended to read:
  242         1009.21 Determination of resident status for tuition
  243  purposes.—Students shall be classified as residents or
  244  nonresidents for the purpose of assessing tuition in community
  245  colleges and state universities.
  246         (1) As used in this section, the term:
  247         (a) The term “Dependent child” means any person, whether or
  248  not living with his or her parent, who is eligible to be claimed
  249  by his or her parent as a dependent under the federal income tax
  250  code.
  251         (b)“Initial enrollment” means the first day of class at an
  252  institution of higher education.
  253         (c)(b)The term “Institution of higher education” means any
  254  public community college as defined in s. 1000.21(3) or state
  255  university as defined in s. 1000.21(6).
  256         (d)(c)A “Legal resident” or “resident” means is a person
  257  who has maintained his or her residence in this state for the
  258  preceding year, has purchased a home which is occupied by him or
  259  her as his or her residence, or has established a domicile in
  260  this state pursuant to s. 222.17.
  261         (e)“Nonresident for tuition purposes” means a person who
  262  does not qualify for the in-state tuition rate.
  263         (f)(d)The term “Parent” means the natural or adoptive
  264  parent or legal guardian of a dependent child.
  265         (g)(e)A “Resident for tuition purposes” means is a person
  266  who qualifies as provided in subsection (2) for the in-state
  267  tuition rate; a “nonresident for tuition purposes” is a person
  268  who does not qualify for the in-state tuition rate.
  269         (2)(a) To qualify as a resident for tuition purposes:
  270         1. A person or, if that person is a dependent child, his or
  271  her parent or parents must have established legal residence in
  272  this state and must have maintained legal residence in this
  273  state for at least 12 consecutive months immediately prior to
  274  his or her initial enrollment in an institution of higher
  275  education qualification. Legal residence must be established by
  276  written or electronic verification including two or more of the
  277  following documents that demonstrate clear and convincing
  278  evidence of continuous residence in the state for at least 12
  279  consecutive months prior to the student’s initial enrollment in
  280  an institution of higher education:
  281         a.A voter information card pursuant to s. 97.071;
  282         b.A driver’s license;
  283         c.An identification card issued by the State of Florida;
  284         d.A vehicle registration;
  285         e.A declaration of domicile;
  286         f.Proof of purchase of a permanent home;
  287         g.Proof of a homestead exemption in Florida;
  288         h.A transcript from a Florida high school;
  289         i.A Florida high school equivalency diploma and
  290  transcript;
  291         j.Proof of permanent full-time employment;
  292         k.Proof of 12 consecutive months of payment of utility
  293  bills;
  294         l.A domicile lease and proof of 12 consecutive months of
  295  payments; or
  296         m.Other official state or court documents evidencing legal
  297  ties to Florida.
  298  
  299  No single piece of evidence shall be conclusive.
  300         2. Every applicant for admission to an institution of
  301  higher education shall be required to make a statement as to his
  302  or her length of residence in the state and, further, shall
  303  establish that his or her presence or, if the applicant is a
  304  dependent child, the presence of his or her parent or parents in
  305  the state currently is, and during the requisite 12-month
  306  qualifying period was, for the purpose of maintaining a bona
  307  fide domicile, rather than for the purpose of maintaining a mere
  308  temporary residence or abode incident to enrollment in an
  309  institution of higher education.
  310         (b) However, with respect to a dependent child living with
  311  an adult relative other than the child’s parent, such child may
  312  qualify as a resident for tuition purposes if the adult relative
  313  is a legal resident who has maintained legal residence in this
  314  state for at least 12 consecutive months immediately prior to
  315  the child’s initial enrollment in an institution of higher
  316  education qualification, provided the child has resided
  317  continuously with such relative for the 5 years immediately
  318  prior to the child’s initial enrollment in an institution of
  319  higher education qualification, during which time the adult
  320  relative has exercised day-to-day care, supervision, and control
  321  of the child.
  322         (c) The legal residence of a dependent child whose parents
  323  are divorced, separated, or otherwise living apart will be
  324  deemed to be this state if either parent is a legal resident of
  325  this state, regardless of which parent is entitled to claim, and
  326  does in fact claim, the minor as a dependent pursuant to federal
  327  individual income tax provisions.
  328         (d)A person who is classified as a nonresident for tuition
  329  purposes may become eligible for reclassification as a resident
  330  for tuition purposes if that person or, if that person is a
  331  dependent child, his or her parent presents clear and convincing
  332  evidence that supports permanent residency in this state rather
  333  than temporary residency for the purpose of pursuing an
  334  education, such as documentation of full-time permanent
  335  employment for the prior 12 months or the purchase of a home in
  336  this state and residence therein for the prior 12 months. If a
  337  person who is a dependent child and his or her parent move to
  338  this state while such child is a high school student and the
  339  child graduates from a high school in this state, the child may
  340  become eligible for reclassification as a resident for tuition
  341  purposes when the parent qualifies for permanent residency.
  342         (3)(a) An individual shall not be classified as a resident
  343  for tuition purposes and, thus, shall not be eligible to receive
  344  the in-state tuition rate until he or she has provided such
  345  evidence related to legal residence and its duration or, if the
  346  individual is a dependent child, documentation of his or her
  347  parent’s legal residence and its duration, as well as
  348  documentation confirming his or her status as a dependent child,
  349  as may be required by law and by officials of the institution of
  350  higher education from which he or she seeks the in-state tuition
  351  rate. The documentation must provide clear and convincing
  352  evidence that the individual has been a resident in this state
  353  for a minimum of 12 consecutive months prior to the student’s
  354  initial enrollment in an institution of higher education. No
  355  single piece of evidence shall be conclusive.
  356         (b)Each institution of higher learning shall:
  357         1.Determine whether an applicant who has been granted
  358  admission to that institution is a dependent child.
  359         2.Affirmatively determine that an applicant who has been
  360  granted admission to that institution as a Florida resident
  361  meets the residency requirements of this section at the time of
  362  his or her initial enrollment.
  363         (4) With respect to a dependent child, the legal residence
  364  of the dependent child’s such individual’s parent or parents is
  365  prima facie evidence of the dependent child’s individual’s legal
  366  residence, which evidence may be reinforced or rebutted,
  367  relative to the age and general circumstances of the dependent
  368  child individual, by the other evidence of legal residence
  369  required of or presented by the dependent child individual.
  370  However, the legal residence of a dependent child’s an
  371  individual whose parent or parents who are domiciled outside
  372  this state is not prima facie evidence of the dependent child’s
  373  individual’s legal residence if that dependent child individual
  374  has lived in this state for 5 consecutive years prior to
  375  enrolling or reregistering at the institution of higher
  376  education at which resident status for tuition purposes is
  377  sought.
  378         (10) The following persons shall be classified as residents
  379  for tuition purposes:
  380         (d) Full-time instructional and administrative personnel
  381  employed by state public schools, community colleges, and
  382  institutions of higher education, as defined in s. 1000.04, and
  383  their spouses and dependent children.
  384         Section 8. Paragraph (c) of subsection (4) and subsections
  385  (7) and (16) of section 1009.24, Florida Statutes, are amended
  386  to read:
  387         1009.24 State university student fees.—
  388         (4)
  389         (c) The Board of Governors, or the board’s designee, may
  390  establish tuition for graduate and professional programs, and
  391  out-of-state fees for all programs. The sum of tuition and out
  392  of-state fees assessed to nonresident students must be
  393  sufficient to offset the full instructional cost of serving such
  394  students. However, adjustments to out-of-state fees or tuition
  395  for graduate programs pursuant to this section may not exceed 15
  396  10 percent in any year, and adjustments to out-of-state fees or
  397  tuition for professional programs may not exceed 15 percent in
  398  any year.
  399         (7) A university board of trustees is authorized to collect
  400  for financial aid purposes an amount not to exceed 5 percent of
  401  the tuition and out-of-state fee. The revenues from fees are to
  402  remain at each campus and replace existing financial aid fees.
  403  Such funds shall be disbursed to students as quickly as
  404  possible. A minimum of 75 percent of funds from the student
  405  financial aid fee for new financial aid awards shall be used to
  406  provide financial aid based on absolute need. A student who has
  407  received an award prior to July 1, 1984, shall have his or her
  408  eligibility assessed on the same criteria that were used at the
  409  time of his or her original award. The Board of Governors shall
  410  develop criteria for making financial aid awards. Each
  411  university shall report annually to the Board of Governors and
  412  the Department of Education on the revenue collected pursuant to
  413  this subsection, the amount carried forward, the criteria used
  414  to make awards, the amount and number of awards for each
  415  criterion, and a delineation of the distribution of such awards.
  416  The report shall include an assessment by category of the
  417  financial need of every student who receives an award,
  418  regardless of the purpose for which the award is received.
  419  Awards which are based on financial need shall be distributed in
  420  accordance with a nationally recognized system of need analysis
  421  approved by the Board of Governors. An award for academic merit
  422  shall require a minimum overall grade point average of 3.0 on a
  423  4.0 scale or the equivalent for both initial receipt of the
  424  award and renewal of the award.
  425         (16) Each university board of trustees may establish a
  426  tuition differential for undergraduate courses upon receipt of
  427  approval from the Board of Governors. The tuition differential
  428  shall promote improvements in the quality of undergraduate
  429  education and shall provide financial aid to undergraduate
  430  students who exhibit financial need.
  431         (a) Seventy-percent of the revenues from the tuition
  432  differential shall be expended for purposes of undergraduate
  433  education, including, but not limited to, increasing course
  434  offerings, improving graduation rates, increasing the percentage
  435  of undergraduate students who are taught by faculty, decreasing
  436  student-faculty ratios, providing salary increases for faculty
  437  who have a history of excellent teaching in undergraduate
  438  courses, improving the efficiency of the delivery of
  439  undergraduate education through academic advisement and
  440  counseling, and reducing the percentage of students who graduate
  441  with excess hours. This expenditure for undergraduate education
  442  may not be used to pay the salaries of graduate teaching
  443  assistants. The remaining 30 percent of the revenues from the
  444  tuition differential shall be expended to provide financial aid
  445  to undergraduate students who exhibit financial need to meet the
  446  cost of university attendance. This expenditure for need-based
  447  financial aid shall not supplant the amount of need-based aid
  448  provided to undergraduate students in the preceding fiscal year
  449  from financial aid fee revenues or the direct appropriation for
  450  financial assistance provided to state universities in the
  451  General Appropriations Act.
  452         (b) Each tuition differential is subject to the following
  453  conditions:
  454         1.The tuition differential may be assessed on one or more
  455  undergraduate courses or on all undergraduate courses at a state
  456  university.
  457         2. For each state university that has total research and
  458  development expenditures for all fields of at least $100 million
  459  per year as reported annually to the National Science
  460  Foundation, the aggregate sum of tuition and the tuition
  461  differential charged for a given course or courses may not be
  462  increased by more than 15 percent of the total charged for the
  463  aggregate sum of these fees in the same course or courses in the
  464  preceding fiscal year. For each state university that has total
  465  research and development expenditures for all field of less than
  466  $100 million per year as reported annually to the National
  467  Science Foundation, the aggregate sum of tuition and the tuition
  468  differential charged for a given course or courses may not be
  469  increased by more than 12.5 percent of the total charged for the
  470  aggregate sum of these fees in the same course or courses in the
  471  preceding fiscal year.
  472         3. The aggregate sum of undergraduate tuition and fees per
  473  credit hour, including the tuition differential, may not exceed
  474  the national average of undergraduate tuition and fees at 4-year
  475  degree-granting public postsecondary educational institutions.
  476         4. The tuition differential may not be calculated as a part
  477  of the scholarship programs established in ss. 1009.53-1009.538.
  478         5. Beneficiaries having prepaid tuition contracts pursuant
  479  to s. 1009.98(2)(b) which were in effect on July 1, 2007, and
  480  which remain in effect, are exempt from the payment of the
  481  tuition differential.
  482         6. The tuition differential may not be charged to any
  483  student who was in attendance at the university before July 1,
  484  2007, and who maintains continuous enrollment.
  485         7. The tuition differential may be waived by the university
  486  for students who meet the eligibility requirements for the
  487  Florida public student assistance grant established in s.
  488  1009.50.
  489         8. Subject to approval by the Board of Governors, the
  490  tuition differential authorized pursuant to this subsection may
  491  take effect with the 2009 fall term.
  492         (c) A university board of trustees may submit a proposal to
  493  the Board of Governors to implement a tuition differential for
  494  one or more undergraduate courses. At a minimum, the proposal
  495  shall:
  496         1. Identify the course or courses for which the tuition
  497  differential will be assessed.
  498         2. Indicate the amount that will be assessed for each
  499  tuition differential proposed.
  500         3. Indicate the purpose of the tuition differential.
  501         4. Indicate how the revenues from the tuition differential
  502  will be used.
  503         5. Indicate how the university will monitor the success of
  504  the tuition differential in achieving the purpose for which the
  505  tuition differential is being assessed.
  506         (d) The Board of Governors shall review each proposal and
  507  advise the university board of trustees of approval of the
  508  proposal, the need for additional information or revision to the
  509  proposal, or denial of the proposal. The Board of Governors
  510  shall establish a process for any university to revise a
  511  proposal or appeal a decision of the board.
  512         (e) The Board of Governors shall submit a report to the
  513  President of the Senate, the Speaker of the House of
  514  Representatives, and the Governor describing the implementation
  515  of the provisions of this subsection no later than January 1,
  516  2010, and no later than January 1 each year thereafter. The
  517  report shall summarize proposals received by the board during
  518  the preceding fiscal year and actions taken by the board in
  519  response to such proposals. In addition, the report shall
  520  provide the following information for each university that has
  521  been approved by the board to assess a tuition differential:
  522         1.The course or courses for which the tuition differential
  523  was assessed and the amount assessed.
  524         2. The total revenues generated by the tuition
  525  differential.
  526         3. With respect to waivers authorized under subparagraph
  527  (b)8., the number of students eligible for a waiver, the number
  528  of students receiving a waiver, and the value of waivers
  529  provided.
  530         4. Detailed expenditures of the revenues generated by the
  531  tuition differential.
  532         5. Changes in retention rates, graduation rates, the
  533  percentage of students graduating with more than 110 percent of
  534  the hours required for graduation, pass rates on licensure
  535  examinations, the number of undergraduate course offerings, the
  536  percentage of undergraduate students who are taught by faculty,
  537  student-faculty ratios, and the average salaries of faculty who
  538  teach undergraduate courses.
  539         (f) No state university shall be required to lower any
  540  tuition differential that was approved by the Board of Governors
  541  and in effect prior to January 1, 2009, in order to comply with
  542  the provisions of this subsection. The Board of Governors may
  543  establish a uniform maximum undergraduate tuition differential
  544  that does not exceed 40 percent of tuition for all universities
  545  that meet the criteria for Funding Level 1 under s. 1004.635(3),
  546  and may establish a uniform maximum undergraduate tuition
  547  differential that does not exceed 30 percent of tuition for all
  548  universities that have total research and development
  549  expenditures for all fields of at least $100 million per year as
  550  reported annually to the National Science Foundation. Once these
  551  criteria have been met and the differential established by the
  552  Board of Governors, the board of trustees of a qualified
  553  university may maintain the differential unless otherwise
  554  directed by the Board of Governors. However, the board shall
  555  ensure that the maximum tuition differential it establishes for
  556  universities meeting the Funding Level 1 criteria is at least 30
  557  percent greater than the maximum tuition differential the board
  558  establishes for universities that meet the required criteria for
  559  research and development expenditures. The tuition differential
  560  is subject to the following conditions:
  561         (a) The sum of tuition and the tuition differential may not
  562  be increased by more than 15 percent of the total charged for
  563  these fees in the preceding fiscal year.
  564         (b) The tuition differential may not be calculated as a
  565  part of the scholarship programs established in ss. 1009.53
  566  1009.537.
  567         (c) Beneficiaries having prepaid tuition contracts pursuant
  568  to s. 1009.98(2)(b) which were in effect on July 1, 2007, and
  569  which remain in effect, are exempt from the payment of the
  570  tuition differential.
  571         (d) The tuition differential may not be charged to any
  572  student who was in attendance at the university before July 1,
  573  2007, and who maintains continuous enrollment.
  574         (e) The tuition differential may be waived by the
  575  university for students who meet the eligibility requirements
  576  for the Florida public student assistance grant established in
  577  s. 1009.50.
  578         (f) A university board of trustees that has been authorized
  579  by the Board of Governors to establish a tuition differential
  580  pursuant to this subsection may establish the tuition
  581  differential at a rate lower than the maximum tuition
  582  differential established by the board, but may not exceed the
  583  maximum tuition differential established by the board.
  584         (g) The revenue generated from the tuition differential
  585  must be spent solely for improving the quality of direct
  586  undergraduate instruction and support services.
  587         (h) Information relating to the annual receipt and
  588  expenditure of the proceeds from the assessment of the tuition
  589  differential shall be reported by the university in accordance
  590  with guidelines established by the Board of Governors.
  591         Section 9. Section 1009.286, Florida Statutes, is created
  592  to read:
  593         1009.286Additional student payment required for hours
  594  exceeding graduation requirements.—
  595         (1)It is the intent of the Legislature to encourage each
  596  undergraduate student who enrolls in a state university to
  597  complete the student’s respective baccalaureate degree program
  598  in the most efficient way possible while providing for access to
  599  additional college coursework. Therefore, the Legislature
  600  intends to enact a policy that provides incentives for efficient
  601  baccalaureate degree completion.
  602         (2)State universities shall require a student to pay an
  603  excess hour surcharge equal to 50 percent of the tuition rate
  604  for each credit hour in excess of 120 percent of the number of
  605  credit hours required to complete the baccalaureate degree
  606  program in which the student is enrolled, in accordance with the
  607  provisions of this section.
  608         (3)The provisions of this section shall become effective
  609  for students who enter a community college or a state university
  610  for the first time in the 2009-2010 academic year and
  611  thereafter.
  612         (4)Except as otherwise provided by law, and for purposes
  613  of this section, the following credit hours shall be included
  614  when calculating the number of hours taken by a student:
  615         (a)All credit hours for courses taken at the state
  616  university from which the student is seeking a baccalaureate
  617  degree, including failed courses, courses that are dropped after
  618  the university’s advertised last day of the drop and add period,
  619  and repeated courses, except for which the student has paid the
  620  full cost of instruction as provided in s. 1009.285.
  621         (b)All credit hours earned at another institution and
  622  accepted for transfer by the state university and applied toward
  623  the student’s baccalaureate degree program.
  624         (5)For purposes of this section, credit hours earned under
  625  the following circumstances are not calculated as hours required
  626  to earn a baccalaureate degree:
  627         (a)College credits earned through an articulated
  628  accelerated mechanism identified in s. 1007.27.
  629         (b)Credit hours earned through internship programs.
  630         (c)Credit hours required for certification,
  631  recertification, or certificate programs.
  632         (d)Credit hours in courses from which a student must
  633  withdraw due to reasons of medical or personal hardship.
  634         (e)Credit hours taken by active-duty military personnel.
  635         (f)Credit hours required to achieve a dual major taken
  636  while pursuing a baccalaureate degree.
  637         (g)Remedial and English as a Second Language credit hours.
  638         (h)Credit hours earned in military science courses
  639  (R.O.T.C.).
  640         (6)Each state university and community college shall
  641  implement a process for notifying students regarding the
  642  provisions of this section. The notice must be provided to a
  643  student upon his or her initial enrollment in the institution
  644  and again upon the student’s having earned the credit hours
  645  required to complete the baccalaureate degree program in which
  646  the student is enrolled. The notice must include a
  647  recommendation that each student who intends to earn credit
  648  hours at the institution in excess of the credit hours required
  649  for the baccalaureate degree program in which the student is
  650  enrolled meet with his or her academic advisor.
  651         (7)For purposes of this section, the term “state
  652  university” includes the institutions identified in s.
  653  1000.21(6) and the term “community college” includes the
  654  institutions identified in s. 1000.21(3).
  655         Section 10. Paragraph (a) of subsection (5) of section
  656  1009.53, Florida Statutes, is amended, and subsection (11) is
  657  added to that section, to read:
  658         1009.53 Florida Bright Futures Scholarship Program.—
  659         (5) The department shall issue awards from the scholarship
  660  program annually. Annual awards may be for up to 45 semester
  661  credit hours or the equivalent. Before the registration period
  662  each semester, the department shall transmit payment for each
  663  award to the president or director of the postsecondary
  664  education institution, or his or her representative, except that
  665  the department may withhold payment if the receiving institution
  666  fails to report or to make refunds to the department as required
  667  in this section.
  668         (a) Within 30 days after the end of regular registration
  669  each semester, the educational institution shall certify to the
  670  department the eligibility status of each student who receives
  671  an award. After the end of the drop and add period, an
  672  institution is not required to reevaluate or revise a student’s
  673  eligibility status; however, an institution but must make a
  674  refund to the department within 30 days after the end of the
  675  semester of any funds received for courses dropped by students
  676  after the end of the drop and add period unless a student has
  677  been granted an exception by the department pursuant to
  678  subsection (11) if a student who receives an award disbursement
  679  terminates enrollment for any reason during an academic term and
  680  a refund is permitted by the institution’s refund policy.
  681         (11)Funds for any scholarship within the Florida Bright
  682  Futures Scholarship Program may not be used to pay for courses
  683  dropped after the end of the drop and add period. However, a
  684  student who receives an award under this program and
  685  subsequently drops one or more courses, or withdraws from all
  686  courses, after the end of the drop and add period due to a
  687  verifiable illness or other emergency may be granted an
  688  exception, unless the institution’s policy is to refund the cost
  689  of the courses. The student must make a written appeal for such
  690  an exception to the institution. The appeal must include a
  691  description and verification of the circumstances. Verification
  692  of illness or other emergency may include, but not be limited
  693  to, a physician’s statement or the written statement of a parent
  694  or institution official. The institution shall recommend the
  695  exceptions and necessary documentation to the department. The
  696  department may accept or reject the institution’s
  697  recommendations.
  698         Section 11. Paragraph (a) of subsection (1) of section
  699  1009.532, Florida Statutes, is amended to read:
  700         1009.532 Florida Bright Futures Scholarship Program;
  701  student eligibility requirements for renewal awards.—
  702         (1) To be eligible to renew a scholarship from any of the
  703  three types of scholarships under the Florida Bright Futures
  704  Scholarship Program, a student must:
  705         (a) Complete at least 24 12 semester credit hours or the
  706  equivalent in the last academic year in which the student earned
  707  a scholarship if the student was enrolled full time, or a
  708  prorated number of credit hours as determined by the Department
  709  of Education if the student was enrolled less than full time for
  710  any part of the academic year. This paragraph also applies to
  711  students who were enrolled and funded in the 2008-2009 academic
  712  year.
  713         Section 12. Subsection (2) of section 1009.534, Florida
  714  Statutes, is amended to read:
  715         1009.534 Florida Academic Scholars award.—
  716         (2) Effective January 1, 2008, a Florida Academic Scholar
  717  who is enrolled in a public postsecondary education institution
  718  is eligible for an award equal to the amount required to pay
  719  tuition and, fees, and an additional amount for college-related
  720  expenses annually as specified in law or the General
  721  Appropriations Act. A student who is enrolled in a nonpublic
  722  postsecondary education institution is eligible for an award
  723  equal to the amount that would be required to pay for the
  724  average tuition and fees of a public postsecondary education
  725  institution at the comparable level, plus the annual amount
  726  specified in law or the General Appropriations Act for college
  727  related expenses.
  728         Section 13. Subsection (4) of section 1009.536, Florida
  729  Statutes, is amended to read:
  730         1009.536 Florida Gold Seal Vocational Scholars award.—The
  731  Florida Gold Seal Vocational Scholars award is created within
  732  the Florida Bright Futures Scholarship Program to recognize and
  733  reward academic achievement and career preparation by high
  734  school students who wish to continue their education.
  735         (4) A student may earn a Florida Gold Seal Vocational
  736  Scholarship for 110 percent of the number of credit hours
  737  required to complete the program, up to 90 credit hours or the
  738  equivalent. A Florida Gold Seal Scholar who has a cumulative
  739  grade point average of 2.75 in all postsecondary education work
  740  attempted may apply for a Florida Medallion Scholars award at
  741  any renewal period. All other provisions of that program apply,
  742  and the credit-hour limitation must be calculated by subtracting
  743  from the student’s total eligibility the number of credit hours
  744  the student attempted while earning the Gold Seal Vocational
  745  Scholarship.
  746         Section 14. Paragraph (b) of subsection (2) and paragraphs
  747  (b) and (c) of subsection (3) of section 1009.57, Florida
  748  Statutes, are amended to read:
  749         1009.57 Florida Teacher Scholarship and Forgivable Loan
  750  Program.—
  751         (2) Within the Florida Teacher Scholarship and Forgivable
  752  Loan Program shall be established the “Chappie” James Most
  753  Promising Teacher Scholarship which shall be offered to a top
  754  graduating senior from each public secondary school in the
  755  state. An additional number of “Chappie” James Most Promising
  756  Teacher Scholarship awards shall be offered annually to
  757  graduating seniors from private secondary schools in the state
  758  which are listed with the Department of Education and accredited
  759  by the Southern Association of Colleges and Schools or any other
  760  private statewide accrediting agency which makes public its
  761  standards, procedures, and member schools. The private secondary
  762  schools shall be in compliance with regulations of the Office
  763  for Civil Rights. The number of awards to private secondary
  764  school students shall be proportional to the number of awards
  765  available to public secondary school students and shall be
  766  calculated as the ratio of the number of private to public
  767  secondary school seniors in the state multiplied by the number
  768  of public secondary schools in the state.
  769         (b) The amount of the scholarship shall be prorated based
  770  on available appropriations and may not exceed is $1,500 per
  771  year. The scholarship and may be renewed for 1 year if the
  772  student earns a 2.5 cumulative grade point average and 12 credit
  773  hours per term and meets the eligibility requirements for
  774  renewal of the award.
  775         (3)
  776         (b) An undergraduate forgivable loan may be awarded for 2
  777  undergraduate years, not to exceed $4,000 per year, or for a
  778  maximum of 3 years for programs requiring a fifth year of
  779  instruction to obtain initial teaching certification. The amount
  780  of the scholarship shall be prorated based on available
  781  appropriations and may not exceed $4,000 per year.
  782         (c) A graduate forgivable loan may be awarded for 2
  783  graduate years, the amount of the scholarship shall be prorated
  784  based on available appropriations and may not to exceed $8,000
  785  per year. In addition to meeting criteria specified in paragraph
  786  (a), a loan recipient at the graduate level shall:
  787         1. Hold a bachelor’s degree from any college or university
  788  accredited by a regional accrediting association as defined by
  789  State Board of Education rule.
  790         2. Not already hold a teaching certificate resulting from
  791  an undergraduate degree in education in an area of critical
  792  teacher shortage as designated by the State Board of Education.
  793         3. Not have received an undergraduate forgivable loan as
  794  provided for in paragraph (b).
  795         Section 15. Subsection (3) of section 1009.58, Florida
  796  Statutes, is amended to read:
  797         1009.58 Critical teacher shortage tuition reimbursement
  798  program.—
  799         (3) Participants may receive tuition reimbursement payments
  800  for up to 9 semester hours, or the equivalent in quarter hours,
  801  per year, the amount of the reimbursement per semester hour
  802  shall be prorated based on available appropriations and may not
  803  exceed at a rate not to exceed $78 per semester hour, up to a
  804  total of 36 semester hours. All tuition reimbursements shall be
  805  contingent on passing an approved course with a minimum grade of
  806  3.0 or its equivalent.
  807         Section 16. Subsection (2) of section 1009.59, Florida
  808  Statutes, is amended to read:
  809         1009.59 Critical Teacher Shortage Student Loan Forgiveness
  810  Program.—
  811         (2) From the funds available, The Department of Education
  812  may make loan principal repayments, which shall be prorated
  813  based on available appropriations as follows:
  814         (a) Up to $2,500 a year for up to 4 years on behalf of
  815  selected graduates of state-approved undergraduate postsecondary
  816  teacher preparation programs, persons certified to teach
  817  pursuant to any applicable teacher certification requirements,
  818  or selected teacher preparation graduates from any state
  819  participating in the Interstate Agreement on the Qualification
  820  of Educational Personnel.
  821         (b) Up to $5,000 a year for up to 2 years on behalf of
  822  selected graduates of state-approved graduate postsecondary
  823  teacher preparation programs, persons with graduate degrees
  824  certified to teach pursuant to any applicable teacher
  825  certification requirements, or selected teacher preparation
  826  graduates from any state participating in the Interstate
  827  Agreement on the Qualification of Educational Personnel.
  828         (c) All repayments shall be contingent on continued proof
  829  of employment in the designated subject areas in this state and
  830  shall be made directly to the holder of the loan. The state
  831  shall not bear responsibility for the collection of any interest
  832  charges or other remaining balance. In the event that designated
  833  critical teacher shortage subject areas are changed by the State
  834  Board of Education, a teacher shall continue to be eligible for
  835  loan forgiveness as long as he or she continues to teach in the
  836  subject area for which the original loan repayment was made and
  837  otherwise meets all conditions of eligibility.
  838         Section 17. Subsections (1) and (3) of section 1009.60,
  839  Florida Statutes, are amended to read:
  840         1009.60 Minority teacher education scholars program.—There
  841  is created the minority teacher education scholars program,
  842  which is a collaborative performance-based scholarship program
  843  for African-American, Hispanic-American, Asian-American, and
  844  Native American students. The participants in the program
  845  include Florida’s community colleges and its public and private
  846  universities that have teacher education programs.
  847         (1) The minority teacher education scholars program shall
  848  provide an annual scholarship in an amount that shall be
  849  prorated based on available appropriations and may not exceed of
  850  $4,000 for each approved minority teacher education scholar who
  851  is enrolled in one of Florida’s public or private universities
  852  in the junior year and is admitted into a teacher education
  853  program.
  854         (3) The total amount appropriated annually for new
  855  scholarships in the program must be divided by $4,000 and by the
  856  number of participating colleges and universities. Each
  857  participating institution has access to the same number of
  858  scholarships and may award all of them to eligible minority
  859  students. If a college or university does not award all of its
  860  scholarships by the date set by the program administration at
  861  the Florida Fund for Minority Teachers, Inc., the remaining
  862  scholarships must be transferred to another institution that has
  863  eligible students. If the total amount appropriated for new
  864  scholarships is insufficient to award $4,000 to each eligible
  865  student, the amount of the scholarship shall be prorated based
  866  on available appropriations.
  867         Section 18. Paragraph (a) of subsection (2) of section
  868  1009.605, Florida Statutes, is amended, and subsection (4) is
  869  added to that section, to read:
  870         1009.605 Florida Fund for Minority Teachers, Inc.—
  871         (2) The corporation shall submit an annual budget
  872  projection to the Department of Education to be included in the
  873  annual legislative budget request. The projection must be based
  874  on a 7-year plan that would be capable of awarding the following
  875  schedule of scholarships:
  876         (a) In the initial year, 700 scholarships in an amount that
  877  shall be prorated based on available appropriations and may not
  878  exceed of $4,000 per scholar each to scholars in his or her the
  879  junior year of college.
  880         (4)Within 60 days after the end of each fiscal year, the
  881  corporation shall return all unexpended funds for the minority
  882  teacher education scholars program to the Department of
  883  Education to be deposited in the State Student Financial
  884  Assistance Trust Fund.
  885         Section 19. Paragraph (e) of subsection (5) of section
  886  1009.701, Florida Statutes, is amended to read:
  887         1009.701 First Generation Matching Grant Program.—
  888         (5) In order to be eligible to receive a grant pursuant to
  889  this section, an applicant must:
  890         (e) Have met the eligibility requirements in s. 1009.50 for
  891  demonstrated financial need for the Florida Public Student
  892  Assistance Grant Program by completing the Free Application for
  893  Federal Student Aid.
  894         Section 20. Section 1009.765, Florida Statutes, is
  895  repealed.
  896         Section 21. Subsection (2) of section 1009.98, Florida
  897  Statutes, is amended, and subsection (10) is added to that
  898  section, to read:
  899         1009.98 Stanley G. Tate Florida Prepaid College Program.—
  900         (2) PREPAID COLLEGE PLANS.—At a minimum, the board shall
  901  make advance payment contracts available for two independent
  902  plans to be known as the community college plan and the
  903  university plan. The board may also make advance payment
  904  contracts available for a dormitory residence plan. The board
  905  may restrict the number of participants in the community college
  906  plan, university plan, and dormitory residence plan,
  907  respectively. However, any person denied participation solely on
  908  the basis of such restriction shall be granted priority for
  909  participation during the succeeding year.
  910         (a)1. Through the community college plan, the advance
  911  payment contract may shall provide prepaid registration fees for
  912  a specified number of undergraduate semester credit hours not to
  913  exceed the average number of hours required for the conference
  914  of an associate degree. Qualified beneficiaries shall bear the
  915  cost of any laboratory fees associated with enrollment in
  916  specific courses. Each qualified beneficiary shall be classified
  917  as a resident for tuition purposes, pursuant to s. 1009.21,
  918  regardless of his or her actual legal residence.
  919         2. Effective July 1, 1998, the board may provide advance
  920  payment contracts for additional fees delineated in s. 1009.23,
  921  not to exceed the average number of hours required for the
  922  conference of an associate degree, in conjunction with advance
  923  payment contracts for registration fees. Community college plan
  924  contracts purchased prior to July 1, 1998, shall be limited to
  925  the payment of registration fees as defined in s. 1009.97.
  926         3.Effective July 1, 2009, the board may offer an advance
  927  payment contract for the community college plan covering prepaid
  928  registration fees and the fees authorized in s. 1009.23. Such a
  929  contract may be offered in specific increments for use toward an
  930  associate degree. The total number of hours purchased for a
  931  qualified beneficiary may not exceed the average number of hours
  932  required for the conference of an associate degree.
  933         (b)1. Through the university plan, the advance payment
  934  contract may shall provide prepaid registration fees for a
  935  specified number of undergraduate semester credit hours not to
  936  exceed the average number of hours required for the conference
  937  of a baccalaureate degree. Qualified beneficiaries shall bear
  938  the cost of any laboratory fees associated with enrollment in
  939  specific courses. Each qualified beneficiary shall be classified
  940  as a resident for tuition purposes pursuant to s. 1009.21,
  941  regardless of his or her actual legal residence.
  942         2. Effective July 1, 1998, the board may provide advance
  943  payment contracts for additional fees delineated in s.
  944  1009.24(9)-(12), for a specified number of undergraduate
  945  semester credit hours not to exceed the average number of hours
  946  required for the conference of a baccalaureate degree, in
  947  conjunction with advance payment contracts for registration
  948  fees. Such contracts shall provide prepaid coverage for the sum
  949  of such fees, to a maximum of 45 percent of the cost of
  950  registration fees. University plan contracts purchased prior to
  951  July 1, 1998, shall be limited to the payment of registration
  952  fees as defined in s. 1009.97.
  953         3. Effective July 1, 2007, the board may provide advance
  954  payment contracts for the tuition differential authorized in s.
  955  1009.24(16) for a specified number of undergraduate semester
  956  credit hours, which may not exceed the average number of hours
  957  required for the conference of a baccalaureate degree, in
  958  conjunction with advance payment contracts for registration
  959  fees.
  960         4.Effective July 1, 2009, the board may offer an advance
  961  payment contract for the university plan covering prepaid
  962  registration fees, the fees authorized in s. 1009.24(9)-(12),
  963  and the tuition differential authorized in s. 1009.24(16). Such
  964  a contract may be offered in specific increments for use toward
  965  a baccalaureate degree. The total number of hours purchased for
  966  a qualified beneficiary may not exceed the average number of
  967  hours required for the conference of a baccalaureate degree.
  968         (c) The cost of participation in contracts authorized under
  969  paragraph (a) or paragraph (b) shall be based primarily on the
  970  current and projected registration fees included in the plan
  971  within the Florida Community College System or the State
  972  University System, respectively, the number of credit hours or
  973  semesters included in the plan, and the number of years expected
  974  to elapse between the purchase of the plan on behalf of a
  975  qualified beneficiary and the exercise of the benefits provided
  976  in the plan by such beneficiary.
  977         (d) Through the dormitory residence plan, the advance
  978  payment contract may provide prepaid housing fees for a maximum
  979  of 10 semesters of full-time undergraduate enrollment in a state
  980  university. Dormitory residence plans shall be purchased in
  981  increments of 2 semesters. The cost of participation in the
  982  dormitory residence plan shall be based primarily on the average
  983  current and projected housing fees within the State University
  984  System and the number of years expected to elapse between the
  985  purchase of the plan on behalf of a qualified beneficiary and
  986  the exercise of the benefits provided in the plan by such
  987  beneficiary. Qualified beneficiaries shall have the highest
  988  priority in the assignment of housing within university
  989  residence halls. Qualified beneficiaries shall bear the cost of
  990  any additional elective charges such as laundry service or long
  991  distance telephone service. Each state university may specify
  992  the residence halls or other university-held residences eligible
  993  for inclusion in the plan. In addition, any state university may
  994  request immediate termination of a dormitory residence contract
  995  based on a violation or multiple violations of rules of the
  996  residence hall or other university-held residences. In the event
  997  that sufficient housing is not available for all qualified
  998  beneficiaries, the board shall refund the purchaser or qualified
  999  beneficiary an amount equal to the fees charged for dormitory
 1000  residence during that semester. If a qualified beneficiary fails
 1001  to be admitted to a state university or chooses to attend a
 1002  community college that operates one or more dormitories or
 1003  residency opportunities, or has one or more dormitories or
 1004  residency opportunities operated by the community college
 1005  direct-support organization, the qualified beneficiary may
 1006  transfer or cause to have transferred to the community college,
 1007  or community college direct-support organization, the fees
 1008  associated with dormitory residence. Dormitory fees transferred
 1009  to the community college or community college direct-support
 1010  organization may not exceed the maximum fees charged for state
 1011  university dormitory residence for the purposes of this section,
 1012  or the fees charged for community college or community college
 1013  direct-support organization dormitories or residency
 1014  opportunities, whichever is less.
 1015         (10)PAYMENTS ON BEHALF OF QUALIFIED BENEFICIARIES.—
 1016         (a)As used in this subsection, the term:
 1017         1.“Tuition differential fee” means the fee covered by
 1018  advance payment contracts sold pursuant to subparagraph (2)(b)3.
 1019  The base rate for the tuition differential fee for the 2012-2013
 1020  fiscal year is established at $37.03 per credit hour. The base
 1021  rate for the tuition differential in subsequent years is the
 1022  amount paid by the board for the tuition differential for the
 1023  preceding year adjusted pursuant to sub-subparagraph 2.b.
 1024         2.“Actuarial reserve” means the expected value of the
 1025  assets of the trust fund which exceed the expected value of the
 1026  liabilities of the trust fund. The board shall annually evaluate
 1027  or cause to be evaluated the actuarial soundness of the trust
 1028  fund.
 1029         3.“Fiscal year” means the fiscal year of the state
 1030  pursuant to s. 215.01.
 1031         (b)Effective with the 2009-2010 academic year and
 1032  thereafter, and notwithstanding the provisions of s. 1009.24,
 1033  the amount paid by the board to any state university on behalf
 1034  of a qualified beneficiary of an advance payment contract whose
 1035  contract was purchased before July 1, 2009, shall be:
 1036         1.As to registration fees, if the actuarial reserve is
 1037  less than 5 percent of the expected liabilities of the trust
 1038  fund, the board shall pay the state universities 5.5 percent
 1039  above the amount assessed for registration fees in the preceding
 1040  fiscal year. If the actuarial reserve is between 5 percent and 6
 1041  percent of the expected liabilities of the trust fund, the board
 1042  shall pay the state universities 6 percent above the amount
 1043  assessed for registration fees in the preceding fiscal year. If
 1044  the actuarial reserve is between 6 percent and 7.5 percent of
 1045  the expected liabilities of the trust fund, the board shall pay
 1046  the state universities 6.5 percent above the amount assessed for
 1047  registration fees in the preceding fiscal year. If the actuarial
 1048  reserve is equal to or greater than 7.5 percent of the expected
 1049  liabilities of the trust fund, the board shall pay the state
 1050  universities 7 percent above the amount assessed for
 1051  registration fees in the preceding fiscal year, whichever is
 1052  greater.
 1053         2.As to the tuition differential fee, if the actuarial
 1054  reserve is less than 5 percent of the expected liabilities of
 1055  the trust fund, the board shall pay the state universities 5.5
 1056  percent above the base rate for the tuition differential fee in
 1057  the preceding fiscal year. If the actuarial reserve is between 5
 1058  percent and 6 percent of the expected liabilities of the trust
 1059  fund, the board shall pay the state universities 6 percent above
 1060  the base rate for the tuition differential fee in the preceding
 1061  fiscal year. If the actuarial reserve is between 6 percent and
 1062  7.5 percent of the expected liabilities of the trust fund, the
 1063  board shall pay the state universities 6.5 percent above the
 1064  amount assessed for registration fees in the preceding fiscal
 1065  year. If the actuarial reserve is equal to or greater than 7.5
 1066  percent of the expected liabilities of the trust fund, the board
 1067  shall pay the state universities 7 percent above the base rate
 1068  for the tuition differential fee in the preceding fiscal year.
 1069         3.Qualified beneficiaries of advance payment contracts
 1070  purchased before July 1, 2007, are exempt from paying any
 1071  tuition differential fee.
 1072         (c)The board shall pay state universities the actual
 1073  amount assessed in accordance with law for registration fees and
 1074  the tuition differential for advance payment contracts purchased
 1075  on or after July 1, 2009.
 1076         Section 22. Subsection (5) of section 1011.32, Florida
 1077  Statutes, is amended to read:
 1078         1011.32 Community College Facility Enhancement Challenge
 1079  Grant Program.—
 1080         (5) A project may not be initiated unless all private funds
 1081  for planning, construction, and equipping the facility have been
 1082  received and deposited in the direct-support organization’s
 1083  matching account for this purpose and the state’s share for the
 1084  minimum amount of funds needed to begin the project has been
 1085  appropriated by the Legislature. However, this requirement does
 1086  not preclude the community college or direct-support
 1087  organization from expending available funds from private sources
 1088  to develop a prospectus, including preliminary architectural
 1089  schematics or models, for use in its efforts to raise private
 1090  funds for a facility and for site preparation, planning, and
 1091  construction. Such facilities are not eligible to be submitted
 1092  for state support for operations until the state matching funds
 1093  have been provided. The Legislature may appropriate the state’s
 1094  matching funds in one or more fiscal years for the planning,
 1095  construction, and equipping of an eligible facility. Each
 1096  community college shall notify all donors of private funds of a
 1097  substantial delay in the availability of state matching funds
 1098  for this program. However, these requirements shall not preclude
 1099  the community college or direct-support organization from
 1100  expending available funds from private sources to develop a
 1101  prospectus, including preliminary architectural schematics
 1102  and/or models, for use in its efforts to raise private funds for
 1103  a facility. Additionally, any private sources of funds expended
 1104  for this purpose are eligible for state matching funds should
 1105  the project materialize as provided for in this section.
 1106         Section 23. Subsection (4) of section 1011.83, Florida
 1107  Statutes, is amended, and subsection (6) is added to that
 1108  section, to read:
 1109         1011.83 Financial support of community colleges.—
 1110         (4) State policy for funding for baccalaureate degree
 1111  programs approved pursuant to s. 1007.33 shall be as provided in
 1112  the General Appropriations Act to limit state support for
 1113  recurring operating purposes to no more than 85 percent of the
 1114  amount of state expenditures for direct instruction per credit
 1115  hour in upper-level state university programs. A community
 1116  college may temporarily exceed this limit due to normal
 1117  enrollment fluctuations or unforeseeable circumstances or while
 1118  phasing in new programs. This subsection does not authorize the
 1119  Department of Education to withhold legislative appropriations
 1120  to any community college.
 1121         (6)If a community college offers more than 25
 1122  baccalaureate degree programs, the Board of Governors shall
 1123  review the programs and determine whether such programs should
 1124  be transferred to the Board of Governors’ oversight.
 1125         Section 24. Subsection (12) is added to section 1011.85,
 1126  Florida Statutes, to read:
 1127         1011.85 Dr. Philip Benjamin Matching Grant Program for
 1128  Community Colleges.—
 1129         (12)Each community college shall notify all donors of
 1130  private funds of a substantial delay in the availability of
 1131  state matching funds for this program.
 1132         Section 25. Subsection (7) is added to section 1011.94,
 1133  Florida Statutes, to read:
 1134         1011.94 University Major Gifts Program.—
 1135         (7)Each university shall notify all donors of private
 1136  funds of a substantial delay in the availability of state
 1137  matching funds for this program.
 1138         Section 26. Section 1012.83, Florida Statutes, is amended
 1139  to read:
 1140         1012.83 Contracts with administrative and instructional
 1141  staff.—
 1142         (1) Each person employed in an administrative or
 1143  instructional capacity in a community college shall be entitled
 1144  to a contract as provided by rules of the State Board of
 1145  Education.
 1146         (2)A community college board of trustees may not enter
 1147  into an employment contract that requires the community college
 1148  to pay an employee an amount from state funds in excess of 1
 1149  year of the employee’s annual salary for termination, buy-out,
 1150  or any other type of contract settlement. This subsection does
 1151  not prohibit the payment of leave and benefits accrued by the
 1152  employee in accordance with the community college’s leave and
 1153  benefits policies before the contract terminates.
 1154         Section 27. Subsection (5) of section 1013.79, Florida
 1155  Statutes, is amended to read:
 1156         1013.79 University Facility Enhancement Challenge Grant
 1157  Program.—
 1158         (5) A project may not be initiated unless all private funds
 1159  for planning, construction, and equipping the facility have been
 1160  received and deposited in the separate university program
 1161  account designated for this purpose. However, these requirements
 1162  do not preclude the university from expending funds derived from
 1163  private sources to develop a prospectus, including preliminary
 1164  architectural schematics or models, for use in its efforts to
 1165  raise private funds for a facility, and for site preparation,
 1166  planning, and construction. Such facilities are not eligible to
 1167  be submitted for state support for operations until the state
 1168  matching funds have been provided and the state’s share for the
 1169  minimum amount of funds needed to begin the project has been
 1170  appropriated by the Legislature. The Board of Governors shall
 1171  establish a method for validating the receipt and deposit of
 1172  private matching funds. The Legislature may appropriate the
 1173  state’s matching funds in one or more fiscal years for the
 1174  planning, construction, and equipping of an eligible facility.
 1175  Each university shall notify all donors of private funds of a
 1176  substantial delay in the availability of state matching funds
 1177  for this program. However, these requirements shall not preclude
 1178  the university from expending available funds from private
 1179  sources to develop a prospectus, including preliminary
 1180  architectural schematics or models, for use in its efforts to
 1181  raise private funds for a facility. Additionally, any private
 1182  sources of funds expended for this purpose are eligible for
 1183  state matching funds should the project materialize as provided
 1184  for in this section.
 1185         Section 28. This act shall take effect July 1, 2009.