SB 72 — Higher Education

authorizingproviding that students who receive an award in the fall or spring term tomay also receive an award in the summer term, subject to the availability of funds;

providing for the prioritization of eligible summer awards;

requiring that the formula used to distribute funds for the program to account for changes in the number of eligible students across all student assistance grant programs;

requiring institutions to certify within a certain timeframe the amount of funds disburseddisbursed; within a specified timeframe;

requiring institutions to remit any undisbursed advances within a specified timeframe;timeframe any undisbursed advances;

requiring that grants administered through the Florida Postsecondary Student Assistance Grant Program not exceed a certain annual award amount;

authorizingproviding that students who receive ana grant award in the fall or spring term tomay also receive an award in the summer term, subject to the availability of funds;

providing for the prioritization of eligible summer awards;

requiring that the formula used to distribute funds for the program to account for changes in the number of eligible students across all student assistance grant programs;

requiring institutions to certify within a certain timeframe the amount of funds disburseddisbursed; within a specified timeframe;

requiring institutions to remit any undisbursed advances within a specified timeframe;timeframe any undisbursed advances;

1009.534, F.S.;

revising provisions relating to additional funds for textbooks under Florida Academic Scholars award;

amending s.

1009.535, F.S.;

revising the amount of an award certain Florida Medallion Scholars may receive under certain circumstances;

amending s.

revising and specifying eligibility for initial awards under the Benacquisto Scholarship Program;

providing a timeframe within which students maycan receive an award;

revising the date by which a universityspending plan must annuallybe submitsubmitted a spending plan to thea university’s board of trustees for approval;

revising the date by which the Board of Governors must annually review and approve such spending plan;

1011.90,1012.976, F.S.;

providingdeleting requirements for a specifiedprovision legislativerelating budgetto request;applicability;

requiring the Board of Governors to defineadopt specifiedregulations classificationsdefining byuniversity regulationfaculty and reportadministrative suchpersonnel definitionsclassifications; in such budget requests;

creating s.

1012.977, F.S.;

providing for the disclosure of contracts that affect the integrity of state universities or entities;

providing definitions;

providing penalties for failure to disclose such information;

revising the datedates by which a Floridaspending Collegeplan System institution must annuallybe submitsubmitted to a spendingFlorida planCollege toSystem the institution’s board of trustees for approval;

revising the datedates by which the State Board of Education mustshall annually review and publish such plans;plan;

providing an effective dates.date.

170145 Be It Enacted by the Legislature of the State of Florida:

172147 Section 1. Subsection1. Section (21) of section 287.057, Florida Statutes, is amended to read:

287.057 Procurement of commodities or contractual services.— (21) An agency may contract for services with any independent, nonprofit college or university which is located within the state on the same basis as it may contract with any state university orand college if the independent, nonprofit college or university:

Section 3. Effective3. Paragraph upon(a) thisof actsubsection becoming(6) a law, subsections (2), (5), and (7) of section 1001.7065,1001.706, Florida Statutes, areis amended to read:

1001.7065 Preeminent1001.706 Powers stateand researchduties universitiesof program.—the (2) ACADEMICBoard ANDof RESEARCHGovernors.— EXCELLENCE(6) POWERS STANDARDS.—TheAND followingDUTIES academicRELATING andTO researchPERSONNEL.— excellence(a) The standardsBoard areof establishedGovernors, foror the preeminentboard’s statedesignee, research universities program and shall beestablish reportedthe annuallypersonnel inprogram thefor Boardall employees of Governorsa Accountabilitystate Plan:university.

The Board of Governors shall confirm the presidential selection and reappointment by a university board of trustees as a means of acknowledging that system cooperation is expected.

The selection of a president by a university board of trustees must be from among at least three candidates.

Section 4. Subsections (2), (5), and (7) of section 1001.7065, Florida Statutes, are amended to read:

1001.7065 Preeminent state research universities program.— (2) ACADEMIC AND RESEARCH EXCELLENCE STANDARDS.—The following academic and research excellence standards are established for the preeminent state research universities program and must be reported annually in the Board of Governors Accountability Plan:

(b) A state university designated as an emerging preeminent state research university shall submit for approval to the Board of Governors a 5-year benchmark plan with target rankings on key performance metrics for national excellence.

Funding increases appropriated beyond the amounts funded in the previous fiscal year shall be distributed as determined annually by the Legislature to as follows:

1. each designated preeminent state research university that meets the criteria in paragraph (a).(a) shall receive an equal amount of funding.

Each designated preeminent state research university shall receive an equal amount of funding.

(7) STATE UNIVERSITIES PROGRAMS OF DISTINCTION EXCELLENCE THROUGHOUT THE STATE UNIVERSITY SYSTEM.—The Board of Governors shall establish standards and measures wherebythat may be used in identifying state universities that focus on one core competency unique to the State University System and that achievesachieve excellence at the national or state level, meetsmeet state workforce needs, and fostersfoster an innovation economy that focuses on areas such areas as health care, security, transportation, and science, technology, engineering, and mathematics (STEM), including supply chain management,management. individual undergraduate, graduate, and professional degree programs in state universities which objectively reflect national excellence can be identified.

TheBy each January 1, the Board of Governors may annually submit such programs,programs excludingwhereby thoseindividual fromundergraduate, preeminentgraduate, and professional degree programs in state researchuniversities universities,which objectively reflect national excellence can be identified and make recommendations to the Legislature byfor Januaryfunding by September 11, for funding, 2018, as to how any such programs could be enhanced and promoted.

Section 4. Subsection (1) of section 1001.92, Florida Statutes, is amended to read:

1001.92 State University System Performance-Based Incentive.— (1) A State University System Performance-Based Incentive shall be awarded to state universities using performance-based metrics adopted by the Board of Governors of the State University System.

Beginning with the Board of Governors’ determination of each university’s performance improvement and achievement ratings for 2018, and the related distribution of annual the 2018-2019 fiscal year appropriation, the performance based metrics must include:

(a) The 4-year graduation rate for first-time-in-college students;

(b) Beginning in fiscal year 2021-2022, the 2-year graduation rate for associate in arts transfer students rates;

(c) Retention rates;

(d) Postgraduation education rates;

(e) Degree production;

(f) Affordability;

(g) Postgraduation employment and salaries, including wage thresholds that reflect the added value of a baccalaureate degree;

(h) Access rate, based on the percentage of undergraduate students enrolled during the fall term who received a Pell Grant during the fall term;

and (i) Beginning in fiscal year 2021-2022, the 6-year graduation rate for students who are awarded a Pell Grant in their first year.

352 The Board of Governors may approve and other metrics approved by the board in a publicly formally noticed meeting.

The board shall adopt benchmarks to evaluate each state university’s performance on the metrics to measure the state university’s achievement of institutional excellence or need for improvement and minimum requirements for eligibility to receive performance funding.

Benchmarks and metrics may not be adjusted after university performance data has been received by the Board of Governors Access rate benchmarks must be differentiated and scored to reflect the varying access rate levels among the state universities;

however, the scoring system may not include bonus points.

Section 6. Effective6. Paragraph upon this act becoming a law, paragraph (c) of subsection (2) of section 1004.346, Florida Statutes, is amended to read:

Section 8. Section 1004.64991,1009.50, Florida Statutes, is createdamended to read:

1004.64991 The Adam Smith Center for the Study of Economic Freedom.— (1) The Adam Smith Center for the Study of Economic Freedom at Florida International University, is hereby created.

(2) The goals of the center are to:

(a) Study the effect of government and free-market economies on individual freedom and human prosperity.

(b) Conduct and promote research on the effect of political and economic systems on human prosperity.

(c) Plan and host research workshops and conferences to allow, students, scholars, and guests to exchange in civil discussion of democracy and capitalism.

(d) Provide fellowship and mentoring opportunities to students engaged in scholarly studies of the effect of political and economic systems on human prosperity.

Section 9. Section 1009.50, Florida Statutes, is amended to read:

If funds are available, a student who received an award in the fall or spring term may receive ana award in the summer term.term award.

Priority in the distribution of summer awards shall be given to students who are within one semester of completing a degree program and students who have not yet earned at least 9 semester hours by attendance at one or more summer sessions.

(c) Priority in the distribution of grant moneys mayshall be given to students whowith arethe withinlowest onetotal semesterfamily ofresources, completingin accordance with a degreenationally program.recognized system of need analysis.

shall be given to students with the lowest total family resources, in accordance with a nationally recognized system of need analysis.

(d) Institutions shall certify to the department within 30 days after the end of regular registration each term the amount of funds disbursed to each student and shall remit to the department any undisbursed advances within 60 days after the end of regular registration each spring term.term any advances by June 1 of each year.

Any refund requested pursuant to this paragraph shall be remitted within 60 days after notification by the departmentdepartment. any advances by June 1 of each year.

Section 10. Subsections9. Present subsections (5) and (6) of section 1009.505, Florida Statutes, are renumberedredesignated as subsections (6) and (7), respectively, a new subsection (5) is added to that section, and subsections (3) and (4) of that section are amended, to read:

Priority in the distribution of grant moneys may be given to students who are within one semester of completing a certificate program.

If funds are available, a student who received an award in the fall or spring term may receive ana award in the summer term.term award.

Priority in the distribution of summer awards shall be given to students who are within one term of completing a certificate program.

(d) Participating institutions shall certify to the department within 30 days after the end of regular registration each term the amount of funds disbursed to each student and shall remit to the department any undisbursed advances within 60 days after the end of regular registration each spring term.term by June 1 of each year.

216.301216.301, and pursuant to s.

216.351, any balance in the trust fund at the end of any fiscal year which has been allocated to the Florida Public Postsecondary Career Education Student Assistance Grant Program shall remain therein and shall be available for carrying out the purposes of this sectionsection. by June 1 of each year.

Section 11. Section10. Section 1009.51, Florida Statutes, is amended to read:

If funds are available, a student who received an award in the fall or spring term may receive ana award in the summer term.term award.

Priority in the distribution of summer awards shall be given to students who are within one semester of completing a degree or certificate program.

(c) Priority in the distribution of grant moneys may be given to students who are within one semester of completing a degree or certificate program shall be given to students with the lowest total family resources, in accordance with a nationally recognized system of need analysis.

An institution may not make a grant from this program to a student whose expected family contribution exceeds one and one-half times the maximum Pell Grant-eligible family contribution the level established by the department.

(d) Institutions shall certify to the department within 30 days after the end of regular registration each term the amount of funds disbursed to each student and shall remit to the department any undisbursed advances within 60 days after the end of regular registration each spring term.term by June 1 of each year.

An institution that uses funds for the summer term shall certify to the department the amount of funds disbursed to each student and shall remit to the department any undisbursed advances within 30 days after the end of the summer termterm. by June 1 of each year.

Section 12. Section11. Section 1009.52, Florida Statutes, is amended to read:

829741 If funds are available, a student who received an award in the fall or spring term may receive ana award in the summer term.term award.

Priority in the distribution of summer awards shall be given to students who are within one semester of completing a degree or certificate program.

(c) Priority in the distribution of grant moneys may be given to students who are within one semester of completing a degree or certificate program shall be given to students with the lowest total family resources, in accordance with a nationally recognized system of need analysis.

An institution may not make a grant from this program to a student whose expected family contribution exceeds one and one-half times the maximum Pell Grant-eligible family contribution the level established by the department.

(d) Institutions shall certify to the department within 30 days after the end of regular registration each term the amount of funds disbursed to each student and shall remit to the department any undisbursed advances within 60 days after the end of regular registration each spring term.term by June 1 of each year.

An institution that uses funds for the summer term shall certify to the department the amount of funds disbursed to each student and shall remit to the department any undisbursed advances within 30 days after the end of the summer termterm. by June 1 of each year.

Section 13. Subsection12. Subsections (2)(2), (4), (5), and (6) of section 1009.534,1009.893, Florida Statutes, isare amended to read:

1009.534 Florida Academic Scholars award.— (2) A Florida Academic Scholar who is enrolled in a certificate, diploma, associate, or baccalaureate degree program at a public or nonpublic postsecondary education institution is eligible, beginning in the 2017-2018 academic year, for an award equal to the amount necessary to pay 100 percent of tuition and fees established under ss.

1009.22(3), (5), (6), and (7);

1009.23(3), (4), (7), (8), (10), and (11);

and 1009.24(4), (7) (13), (14)(r), and (16), as applicable, and is eligible for an additional stipend $300 each fall and spring academic semester or the equivalent for textbooks, to assist with the payment of educational expenses as funds are specifically appropriated in the General Appropriations Act.

Section 14. Subsection (2) of section 1009.535, Florida Statutes, is amended to read:

1009.535 Florida Medallion Scholars award.— (2) A Florida Medallion Scholar who is enrolled in a certificate, diploma, associate, or baccalaureate degree program at a public or nonpublic postsecondary education institution is eligible, beginning in the fall 2018 semester, for an award equal to the amount necessary to pay 75 percent of tuition and fees established under ss.

1009.22(3), (5), (6), and (7);

1009.23(3), (4), (7), (8), (10), and (11);

and 1009.24(4), (7) (13), (14)(r), and (16), as applicable, to assist with the payment of educational expenses.

Beginning in the fall 2021 semester, a Florida Medallion Scholar who is enrolled in an associate degree program at a Florida College System institution is eligible for an award equal to the amount necessary to pay 100 percent of tuition and fees established under s.

1009.23(3), (4), (7), (8), (10), and (11) to assist with the payment of educational expenses.

Section 15. Subsections (2), (4), (5), and (6) of section 1009.893, Florida Statutes, are amended to read:

Section 16. Subsection13. Section (2) and paragraphs (e) and (f) of subsection (3) of section 1011.45, Florida Statutes, are amended, and paragraph (g) is addedamended to subsection (3) of that section, to read:

(1) Each university shall maintain a minimum carry forward balance of at least 7 percent of its state operating budget.

If a university fails to maintain a 7 percent balance in state operating funds, the university shall submit a plan to the Board of Governors to attain the 7 percent balance of state operating funds within the next fiscal year.

(a) Commitment of funds to a public education capital outlay project for which an appropriation has previously been provided that requires additional funds for completion and which is included in the list required by s.

1001.706(12)(d);

(b) Completion of a renovation, repair, or maintenance project that is consistent with the provisions of s.

1013.64(1), up to $5 million per project, and replacement of a minor facility that does not exceed 10,000 gross square feet in size up to $2 million;

(c) Completion of a remodeling or infrastructure project, including a project for a development research school, up to $10 million per project, if such project is survey recommended pursuant to s.

1013.31;

(d) Completion of a repair or replacement project necessary due to damage caused by a natural disaster for buildings included in the inventory required pursuant to s.

1013.31;

and (g) A commitment of funds to a contingency reserve forto expensesassist incurredin asaddressing aunforeseen resultcircumstances ofthat amay statearise, ofincluding emergencynatural declareddisasters byand theother Governoremergencies. pursuant to s.

252.36.(4) Annually, by September 30, the chief financial officer of each university shall certify the unexpended amount of funds appropriated to the university from the General Revenue Fund, the Educational Enhancement Trust Fund, and the Education/General Student and Other Fees Trust Fund as of June 30 of the previous fiscal year.

Section(5) A 17. Subsectionuniversity (4)may spend the minimum carry forward carryforward balance of section7 1011.90,percent Floridaif Statutes,a demonstrated emergency exists and the plan is amendedapproved toby read:the university’s board of trustees and the Board of Governors.

1011.90 StateSection university14. Subsection funding.—(3) (4) The Board of Governorssection shall1012.976, establishFlorida andStatutes, validateis aamended cost-estimatingto systemread: consistent with the requirements of subsection (1) and shall report as part of its legislative budget request the actual expenditures for the fiscal year ending the previous June 30.

The1012.976 Remuneration legislative budget request must also include 5-year trend information on the number of facultystate and administrators at each university andadministrative theemployees; proportion of FTE dedicated to instruction and research compared to administration.

Thelimitations.— Board(3) EXCEPTIONS.—This ofsection Governors,does bynot regulation,prohibit shallany defineparty facultyfrom andproviding administratorcash classificationsor andcash-equivalent shallcompensation alsofrom reportfunds thethat definitionsare not appropriated state funds to a state university administrative employee in excess of the legislativelimit budgetin request.subsection (2).

ExpenditureIf analysis,a operatingparty budgets,is andunable annualor financialunwilling statementsto offulfill eachan obligation to provide cash or cash-equivalent compensation to a state university mustadministrative beemployee preparedas usingpermitted theunder standardthis financialsubsection, reportingappropriated proceduresstate andfunds formatsmay prescribednot bybe theused Boardto offulfill Governors.such obligation.

TheseThis formatssection shalldoes benot theapply sameto asuniversity usedteaching forfaculty theor 2000-2001medical fiscalschool yearfaculty reports.or staff.

AnyThe revisionsBoard toof theseGovernors financialshall anddefine reportingin proceduresregulation and formats must be approved by the Executiveuniversity Officefaculty of the Governor and theadministrative appropriationspersonnel committeesclassifications. of the Legislature jointly under the provisions of s.

216.023(3).Section 15. Paragraph (b) of subsection (2), paragraph (b) of subsection (3), and subsection (4) of section 1013.841, Florida Statutes, are amended to read:

The1013.841 End Boardof year balance of GovernorsFlorida shallCollege continueSystem toinstitution collectfunds.— and(2)(b) Each maintainFlorida atCollege System institution with a final FTE less than 15,000 for the prior year that retains a state operating fund carry forward balance in excess of the 5 percent minimum managementshall informationsubmit existinga onspending Juneplan 30,for 2002.its excess carry forward balance.

The expenditure analysis report shall include total expenditures from all sources for the general operation of the university and shall be in such detail as needed to support the legislative budget request.

Section 18. Section 1012.977, Florida Statutes, is created to read:

1012.977 Disclosure of contracts that affect the integrity of state universities or entities;

penalties.— (1) Any person employed by a state university or entity engaging in research which was created or authorized pursuant to part II of chapter 1004 consents to the policies of the university or entity, the regulations of the Board of Governors, and the laws of this state.

At a minimum, such policies shall require employees engaged in the design, conduct, or reporting of research to disclose and receive a determination that the outside activity or financial interest does not affect the integrity of the state university or entity.

(2)(a) “Financial interest” includes anything of value other than that provided directly by the university or entity.

(b) “Outside activity” includes anything an employee does for an organization or an individual, other than the university or entity, that is related to the employee’s expertise.

(3) An employee who has failed to disclose any outside activity or financial interest as required by subsection (1) shall be suspended without pay pending the outcome of an investigation which shall not exceed 60 days.

Upon conclusion of the investigation, the university or entity may terminate the contract of the employee.

Section 19. Paragraph (b) of subsection (2), paragraph (b) of subsection (3), and subsection (4) of section 1013.841, Florida Statutes, are amended to read:

1013.841 End of year balance of Florida College System institution funds.— (2) (b) Each Florida College System institution with a final FTE less than 15,000 for the prior year that retains a state operating fund carry forward balance in excess of the 5 percent minimum shall submit a spending plan for its excess carry forward balance.

(3)(3)(b) Each (b) Each Florida College System institution with a final FTE of 15,000 or greater for the prior year that retains a state operating fund carry forward balance in excess of the 7 percent minimum shall submit a spending plan for its excess carry forward balance.

(4) A Florida College System institution identified in paragraph (3)(b) (3)(a) must include in its carry forward spending plan the estimated cost per planned expenditure and a timeline for completion of the expenditure.

and (g) A commitment of funds to a contingency reserve forto expensesassist incurredin asaddressing aunforeseen resultcircumstances ofthat amay statearise, ofincluding emergencynatural declareddisasters byand theother Governoremergencies. pursuant to s.

252.36.Section 16. This act shall take effect July 1, 2020.

Section 20. Except as otherwise expressly provided in this act and except for this section, which shall take effect upon this act becoming a law, this act shall take effect July 1, 2020.