Bill Text: FL S0628 | 2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Independent Nonprofit Higher Education Facilities Financing

Spectrum:

Status: (Failed) 2014-05-02 - Died in Appropriations [S0628 Detail]

Download: Florida-2014-S0628-Introduced.html

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       Florida Senate - 2014                                     SB 628
       
       
        
       By Senator Montford
       
       
       
       
       
       3-00593-14                                             2014628__
    1                        A bill to be entitled                      
    2         An act relating to educational facilities financing;
    3         renaming chapter 243, F.S., and part II thereof to
    4         conform to changes made by the act; amending ss.
    5         243.50, 243.51, 243.52, 243.53, 243.54, 243.59,
    6         243.66, 243.67, and 243.73, F.S.; revising provisions
    7         relating to the financing of independent nonprofit
    8         higher educational facilities to include financing for
    9         private nonprofit elementary, middle, and secondary
   10         schools meeting certain criteria; revising the short
   11         title and findings to conform; revising definitions;
   12         renaming the facilities financing authority to
   13         conform; revising powers of the authority, including
   14         the issuance and payment of bonds, to conform;
   15         revising the date for submission of an annual
   16         financial report by the authority to the Governor and
   17         Legislature; providing an effective date.
   18          
   19  Be It Enacted by the Legislature of the State of Florida:
   20  
   21         Section 1. Chapter 243, Florida Statutes, entitled “Higher
   22  Educational Facilities Bonds,” is renamed “Educational
   23  Facilities Bonds.” Part II of that chapter, entitled “Higher
   24  Educational Facilities Financing,” is renamed “Educational
   25  Facilities Financing.”
   26         Section 2. Section 243.50, Florida Statutes, is amended to
   27  read:
   28         243.50 Short title.—Sections 243.50-243.77 may be cited as
   29  the “Higher Educational Facilities Financing Act.”
   30         Section 3. Section 243.51, Florida Statutes, is amended to
   31  read:
   32         243.51 Findings and declarations.—It is the purpose of ss.
   33  243.50-243.77 to provide a measure of assistance and an
   34  alternative method enabling private educational institutions in
   35  of higher education of this state to provide the facilities and
   36  structures that they need and to enable those institutions to
   37  coordinate their budgetary needs with the timing of receipt of
   38  tuition revenues.
   39         Section 4. Subsections (3) through (8) of section 243.52,
   40  Florida Statutes, are amended to read:
   41         243.52 Definitions.—As used in ss. 243.50-243.77, the term:
   42         (3) “Project” means a structure suitable for use as a
   43  dormitory or other housing facility, dining hall, student union,
   44  administration building, academic building, library, laboratory,
   45  research facility, classroom, athletic facility, health care
   46  facility, or maintenance, storage, or utility facility, and
   47  other structures or facilities related thereto, or required
   48  thereto, or required or useful for the instruction of students,
   49  or the conducting of research, or the operation of an
   50  educational institution, including parking and other facilities
   51  or structures, essential or convenient for the orderly conduct
   52  of such institution and includes equipment and machinery and
   53  other similar items necessary or convenient for the operation of
   54  a particular facility or structure in the manner for which its
   55  use is intended but does not include such items as books, fuel,
   56  supplies, or other items that are customarily deemed to result
   57  in a current operating charge. The term also dormitory, student
   58  service facility, parking facility, administration building,
   59  academic building, or library and includes a loan in
   60  anticipation of tuition revenues by an educational institution
   61  of higher education, as defined in subsection (6).
   62         (4) “Cost,” as applied to a project or any portion thereof
   63  financed under ss. 243.50-243.77, includes all or any part of
   64  the cost of construction and acquisition of all lands,
   65  structures, real property, rights, rights-of-way, franchises,
   66  easements, and interests acquired or used for a project; the
   67  cost of demolishing or removing any buildings or structures on
   68  land so acquired, including the cost of acquiring any lands to
   69  which the buildings or structures may be removed; the cost of
   70  all machinery and equipment, financing charges, and interest
   71  before, during, and for a period of 30 months after completion
   72  of the construction; provisions for working capital, reserves
   73  for principal, interest, and rebate; provisions for extensions,
   74  enlargements, additions, and improvements; the cost of
   75  engineering, financial, and legal services; the cost of plans,
   76  specifications, studies, surveys, estimates of costs and
   77  revenues, administrative expenses, and expenses necessary to
   78  determining the feasibility or practicability of constructing
   79  the project; and other expenses necessary for constructing and
   80  acquiring the project, financing the construction, and placing
   81  the project in operation. In the case of a loan in anticipation
   82  of tuition revenues, the term “cost” means the amount of the
   83  loan in anticipation of revenues which does not exceed the
   84  amount of tuition revenues anticipated to be received by the
   85  borrowing educational institution of higher education in the 1
   86  year period following the date of the loan, plus costs related
   87  to the issuance of the loan, or the amount of the bonds, the
   88  proceeds of which fund the loans and any related cost of debt
   89  service, reserve funds, and rebate associated therewith.
   90         (5) “Bond” or “revenue bond” means a revenue bond of the
   91  authority issued under ss. 243.50-243.77, including a revenue
   92  refunding bond, notwithstanding that it may be secured by
   93  mortgage or the full faith and credit of a participating
   94  institution of higher education or any other lawfully pledged
   95  security of a participating institution of higher education.
   96         (6) “Educational institution of higher education” means:
   97         (a) An independent nonprofit college or university that
   98  which is located in and chartered by the state; that which is
   99  accredited by the Commission on Colleges of the Southern
  100  Association of Colleges and Schools; that which grants
  101  baccalaureate degrees; and that which is not a state university
  102  or Florida College System institution state community college.
  103         (b) A private nonprofit elementary, middle, or secondary
  104  school that is located in and chartered by the state and
  105  accredited by the Southern Association of Colleges and Schools.
  106         (7) “Participating institution” means an educational
  107  institution of higher education, as defined in subsection (6),
  108  which that undertakes the financing and construction or
  109  acquisition of a project or undertakes the refunding or
  110  refinancing of obligations or of a mortgage or of advances as
  111  provided in and permitted by ss. 243.50-243.77.
  112         (8) “Loan in anticipation of tuition revenues” means a loan
  113  to a participating an institution of higher education under
  114  circumstances in which tuition revenues anticipated to be
  115  received by the institution in any budget year are estimated to
  116  be insufficient at any time during the budget year to pay the
  117  operating expenses or other obligations of the institution in
  118  accordance with the budget of the institution.
  119         Section 5. Subsections (1) and (2) of section 243.53,
  120  Florida Statutes, are amended to read:
  121         243.53 Creation of Higher Educational Facilities Financing
  122  Authority.—
  123         (1) There is created a public body corporate and politic to
  124  be known as the Higher Educational Facilities Financing
  125  Authority. The authority is constituted as a public
  126  instrumentality, and the exercise by the authority of the powers
  127  conferred by ss. 243.50-243.77 is considered to be the
  128  performance of an essential public function. Chapters 119 and
  129  286 apply to the authority.
  130         (2) The authority shall consist of five members to be
  131  appointed by the Governor, subject to confirmation by the
  132  Senate. One member shall be a trustee, director, officer, or
  133  employee of a participating an institution of higher education.
  134  Of the members first appointed, one shall serve for 1 year, one
  135  for 2 years, one for 3 years, one for 4 years, and one for 5
  136  years, and in each case until his or her successor is appointed
  137  and has qualified. Thereafter, the Governor shall appoint, for
  138  terms of 5 years each, a member or members to succeed those
  139  whose terms expire. The Governor shall fill any vacancy for an
  140  unexpired term. A member of the authority is eligible for
  141  reappointment. Any member of the authority may be removed by the
  142  Governor for misfeasance, malfeasance, or willful neglect of
  143  duty. Each member of the authority before entering upon his or
  144  her duties shall take and subscribe to the oath or affirmation
  145  required by the State Constitution. A record of each oath must
  146  be filed in the office of the Department of State and with the
  147  authority.
  148         Section 6. Section 243.54, Florida Statutes, is amended to
  149  read:
  150         243.54 Powers of the authority.—The purpose of the
  151  authority is to assist participating institutions of higher
  152  education in constructing, financing, and refinancing projects
  153  throughout the state, and, for this purpose, the authority may:
  154         (1) Exercise all powers granted to corporations under the
  155  Florida Business Corporation Act, chapter 607.
  156         (2) Have perpetual succession as a body politic and
  157  corporate and adopt bylaws for the regulation of its affairs and
  158  the conduct of its business.
  159         (3) Adopt an official seal and alter the same at its
  160  pleasure.
  161         (4) Maintain an office at any place in the state that it
  162  may designate.
  163         (5) Sue and be sued in its own name, and plead and be
  164  impleaded.
  165         (6) Make and execute financing agreements, leases, as
  166  lessee or as lessor, contracts, deeds, and other instruments
  167  necessary or convenient in the exercise of the powers and
  168  functions of the authority, including contracts with persons,
  169  firms, corporations, federal and state agencies, and other
  170  authorities, which state agencies and other authorities are
  171  authorized to enter into contracts and otherwise cooperate with
  172  the authority to facilitate the financing, construction,
  173  leasing, or sale of any project or the institution of any
  174  program; engage in sale-leaseback, lease-purchase, lease
  175  leaseback, or other undertakings and provide for the sale of
  176  certificates of participation incident thereto; and enter into
  177  interlocal agreements in the manner provided in s. 163.01.
  178         (7) Determine the location and character of any project to
  179  be financed under ss. 243.50-243.77 and may:
  180         (a) Construct, reconstruct, maintain, repair, and lease the
  181  project as lessee or lessor.
  182         (b) Enter into contracts for any of those purposes.
  183         (c) Designate a participating institution as its agent to
  184  determine the location and character of a project undertaken by
  185  a participating institution under ss. 243.50-243.77 and, as the
  186  agent of the authority, construct, reconstruct, maintain,
  187  repair, own, and lease the project as lessee or lessor.
  188         (8) Issue bonds, bond anticipation notes, and other
  189  obligations of the authority for any of its corporate purposes,
  190  including the provision of funds to pay all or any part of the
  191  cost of any project and to fund or refund the cost of any
  192  project as provided in ss. 243.50-243.77.
  193         (9) Establish rules for the use of a project or any portion
  194  thereof and designate a participating institution as its agent
  195  to establish rules for the use of a project undertaken by the
  196  participating institution.
  197         (10) Employ consulting engineers, architects, attorneys,
  198  accountants, construction and financial experts,
  199  superintendents, managers, and other employees and agents as
  200  necessary, and fix their compensation.
  201         (11) Receive and accept from any public agency loans or
  202  grants for or in aid of the construction of a project or any
  203  portion thereof, and receive and accept loans, grants, aid, or
  204  contributions from any source of money, property, labor, or
  205  other things of value, to be held, used, and applied only for
  206  the purposes for which the loans, grants, aid, and contributions
  207  are made.
  208         (12) Mortgage any project and the site thereof for the
  209  benefit of the holders of revenue bonds issued to finance
  210  projects or those providing credit for that purpose.
  211         (13) Make loans to any participating institution for the
  212  cost of a project, including a loan in anticipation of tuition
  213  revenues, in accordance with an agreement between the authority
  214  and the participating institution. However, a loan may not
  215  exceed the total cost of the project as determined by the
  216  participating institution and approved by the authority.
  217         (14) Make loans to a participating institution to refund
  218  outstanding obligations, mortgages, or advances issued, made, or
  219  given by the participating institution for the cost of a
  220  project.
  221         (15) Charge to and equitably apportion among participating
  222  institutions its administrative costs and expenses incurred in
  223  the exercise of the powers and duties conferred by ss. 243.50
  224  243.77.
  225         (16) Contract with an entity as its agent to assist the
  226  authority in screening applications of participating
  227  institutions of higher education for loans under ss. 243.50
  228  243.77 and receive any recommendations the entity may make.
  229         (17) Do all things necessary or convenient to carry out the
  230  purposes of ss. 243.50-243.77.
  231         Section 7. Section 243.59, Florida Statutes, is amended to
  232  read:
  233         243.59 Approval required to issue bonds.—The authority is
  234  created for the purpose of promoting private nonprofit higher
  235  education and issuing bonds on behalf of the state, and the
  236  Governor may approve any bonds issued by the authority which
  237  require approval under federal law.
  238         Section 8. Section 243.66, Florida Statutes, is amended to
  239  read:
  240         243.66 Payment of bonds.—Revenue bonds issued under ss.
  241  243.50-243.77 are not a debt or liability of the authority, any
  242  municipality, the state, or any political subdivision thereof,
  243  and are not a pledge of the faith and credit of the state, the
  244  authority, any municipality, or any political subdivision
  245  thereof, but are payable solely from revenues of the authority
  246  pertaining to the project relating to the issue; payments by
  247  participating institutions of higher education, banks, insurance
  248  companies, or others under letters of credit or purchase
  249  agreements; investment earnings from funds or accounts
  250  maintained under the bond resolution; insurance proceeds; loan
  251  funding deposits; proceeds of sales of education loans; proceeds
  252  of refunding obligations; and fees, charges, and other revenues
  253  of the authority from the project. All revenue bonds must
  254  contain on the face thereof a statement to the effect that
  255  neither the authority nor any municipality, the state, or any
  256  political subdivision thereof is obligated to pay the bond or
  257  the interest thereon except from revenues of the project or the
  258  portion thereof for which they are issued, and that neither the
  259  faith and credit nor the taxing power of the authority, any
  260  municipality, the state, or any political subdivision thereof is
  261  pledged to the payment of the principal of or the interest on
  262  the bonds. The issuance of revenue bonds under ss. 243.50-243.77
  263  may not directly, indirectly, or contingently obligate the
  264  authority, any municipality, the state, or any political
  265  subdivision thereof to levy or to pledge any form of taxation
  266  therefor or to make any appropriation for their payment.
  267         Section 9. Subsection (3) of section 243.67, Florida
  268  Statutes, is amended to read:
  269         243.67 Rates, rents, fees, and charges.—
  270         (3) The use and disposition of moneys to the credit of a
  271  sinking or other similar fund must be subject to the resolution
  272  authorizing the issuance of the bonds or of the trust agreement.
  273  Except as otherwise provided in the resolution or the trust
  274  agreement, the sinking or other similar fund must be a fund for
  275  all revenue bonds issued to finance projects at a particular
  276  participating institution of higher education without
  277  distinction or priority of one over another. However, the
  278  authority in any resolution or trust agreement may provide that
  279  the sinking or other similar fund be the fund for a particular
  280  project at a participating institution and for payment of the
  281  revenue bonds issued to finance that project, and may,
  282  additionally, permit and provide for the issuance of revenue
  283  bonds having a subordinate lien in respect of the security
  284  authorized to other revenue bonds of the authority, and, in such
  285  case, the authority may create separate sinking or other similar
  286  funds in respect of the subordinate lien bonds.
  287         Section 10. Subsection (1) of section 243.73, Florida
  288  Statutes, is amended to read:
  289         243.73 Reports; audits.—
  290         (1) The authority shall submit to the Governor and the
  291  presiding officers of each house of the Legislature, within 4 2
  292  months after the end of its fiscal year, a complete and detailed
  293  report setting forth:
  294         (a) Its operations and accomplishments.
  295         (b) Its receipts and expenditures during its fiscal year in
  296  accordance with the categories or classifications established by
  297  the authority for its operating and capital outlay purposes.
  298         (c) Its assets and liabilities at the end of its fiscal
  299  year and the status of reserve, special, or other funds.
  300         (d) A schedule of its bonds outstanding at the end of its
  301  fiscal year, together with a statement of the principal amounts
  302  of bonds issued and redeemed during the fiscal year.
  303         (e) Any other information the authority deems appropriate.
  304         Section 11. This act shall take effect July 1, 2014.