Senate Bill sb1052c1
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Florida Senate - 2007 CS for SB 1052
By the Committee on Education Pre-K - 12 Appropriations; and
Senator Wise
602-2270-07
1 A bill to be entitled
2 An act relating to the Florida Prepaid Tuition
3 Scholarship Endowment; creating s. 215.5605,
4 F.S.; creating the endowment within the State
5 Board of Administration for the purpose of
6 funding scholarships for economically
7 disadvantaged youth; providing for moneys from
8 the tax on slot machines to be transferred from
9 the Educational Enhancement Trust Fund to the
10 endowment as provided in the General
11 Appropriations Act; providing definitions;
12 requiring the board to invest funds of the
13 endowment and provide reports to the
14 Legislature; providing for the transfer of
15 earnings from the endowment to the Educational
16 Enhancement Trust Fund; requiring the
17 Department of Education to be accountable for
18 funds appropriated to the department; providing
19 requirements for costs and fees; providing
20 requirements for the expenditure and use of
21 distributions from the endowment; providing for
22 revenues of the endowment to be appropriated to
23 the direct-support organization of the Florida
24 Prepaid College Board; providing for the
25 reversion of unencumbered balances of
26 appropriations and undisbursed balances of the
27 endowment's principal; providing an effective
28 date.
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30 Be It Enacted by the Legislature of the State of Florida:
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Florida Senate - 2007 CS for SB 1052
602-2270-07
1 Section 1. Section 215.5605, Florida Statutes, is
2 created to read:
3 215.5605 Florida Prepaid Tuition Scholarship
4 Endowment.--
5 (1) FLORIDA PREPAID TUITION SCHOLARSHIP ENDOWMENT;
6 CREATION; PRINCIPAL.--
7 (a) There is created the Florida Prepaid Tuition
8 Scholarship Endowment, to be administered by the State Board
9 of Administration. The purpose of the endowment is to provide
10 a perpetual source of enhanced funding for the Florida Prepaid
11 Tuition Scholarship Program to provide prepaid postsecondary
12 tuition scholarships for economically disadvantaged youth. The
13 endowment shall be exempt from the service charges imposed by
14 s. 215.20.
15 (b) The endowment shall receive moneys from the tax on
16 slot machine revenues as defined in s. 551.106. Moneys to be
17 transferred from the Educational Enhancement Trust Fund to the
18 Florida Prepaid Tuition Scholarship Endowment shall be in the
19 amount provided by the Legislature in the General
20 Appropriations Act to the Department of Education. The
21 department shall transfer the appropriated funds to the
22 endowment at the State Board of Administration.
23 (c) The principal in the endowment shall be reserved
24 and accounted for within the endowment and the earnings shall
25 be used, as appropriated by the Legislature, for the funding
26 of Florida Prepaid Tuition Scholarships for economically
27 disadvantaged youth as provided in s. 1009.984.
28 (2) DEFINITIONS.--As used in this section, the term:
29 (a) "Board" means the State Board of Administration
30 established by s. 16, Art. IX of the State Constitution of
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Florida Senate - 2007 CS for SB 1052
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1 1885 and incorporated into s. 9(c), Art. XII of the State
2 Constitution of 1968.
3 (b) "Endowment" means the Florida Prepaid Tuition
4 Scholarship Endowment.
5 (c) "Earnings" means all income generated by
6 investments.
7 (d) "Department" means the Department of Education.
8 (3) ADMINISTRATION.--
9 (a) The board may invest and reinvest funds of the
10 endowment in accordance with s. 215.47 and consistent with a
11 trust agreement as provided in s. 215.44.
12 (b) In accordance with s. 215.44, the board shall
13 include separate sections on the financial status of the
14 endowment in its annual investment report to the Legislature.
15 (c) The board shall report to the Legislature by
16 February 1 each year the estimated amount of earnings in the
17 endowment as of June 30 of that year. The Legislature may or
18 may not appropriate the available earnings in any fiscal year
19 for Florida Prepaid Tuition Scholarships as provided in s.
20 1009.984. The board shall transfer earnings to the Educational
21 Enhancement Trust Fund in the amount appropriated by the
22 Legislature.
23 (d) Accountability for funds from the endowment which
24 have been appropriated to the Department of Education and
25 distributed by the board shall reside with the department. The
26 board is not responsible or accountable for the proper
27 expenditure of funds from the endowment after distribution to
28 the department.
29 (e) Costs and fees of the board for investment
30 services shall be deducted from the earnings accruing to the
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Florida Senate - 2007 CS for SB 1052
602-2270-07
1 endowment. Fees for investment services shall be no greater
2 than fees charged to the Florida Retirement System.
3 (4) AVAILABILITY OF FUNDS; USES.--
4 (a) Earnings in the Florida Prepaid Tuition Endowment
5 Fund shall be transferred by the board to the Educational
6 Enhancement Trust Fund in the amount appropriated from the
7 Educational Enhancement Trust Fund for Florida Prepaid Tuition
8 Scholarships, as provided in s. 1009.984, by the Legislature.
9 (b) In order to ensure that the expenditure of funds
10 earned from the Florida Prepaid Tuition Endowment Fund will be
11 used only for the purposes intended by the Legislature, the
12 Legislature shall establish line item categories that
13 designate the use of the appropriated funds in the General
14 Appropriations Act.
15 (c) Subject to legislative appropriations, the Florida
16 Prepaid College Board shall use distributions from the
17 endowment to provide prepaid postsecondary tuition
18 scholarships to economically disadvantaged youth pursuant to
19 s. 1009.984.
20 (d) Appropriations of endowment investment revenues by
21 the Legislature to the department shall be deposited into the
22 account of the direct-support organization of the Florida
23 Prepaid College Board established pursuant s. 1009.983.
24 (e) Notwithstanding s. 216.301 and pursuant to s.
25 216.351, all unencumbered balances of appropriations to the
26 department as of June 30 or undisbursed balances as of
27 September 30 shall revert to the endowment's principal at the
28 board.
29 Section 2. This act shall take effect July 1, 2007.
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Florida Senate - 2007 CS for SB 1052
602-2270-07
1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 Senate Bill 1052
3
4 The Committee Substitute:
5 The bill creates the Florida Prepaid Tuition Scholarship
Endowment within the State Board of Administration for the
6 purpose of providing a perpetual source of enhanced funding to
provide postsecondary education prepaid tuition scholarships
7 for economically disadvantaged youth. The endowment will
receive money, subject to appropriation, from the tax on slot
8 machine revenues. Funds for the endowment will be in an amount
determined annually by the Legislature in the General
9 Appropriations Act.
10 Earnings in the endowment shall be transferred by the Board of
Administration in the amount appropriated by the Legislature
11 to fund scholarships. Subject to legislative appropriations,
the Florida Prepaid College Board shall use the distributions
12 from the endowment to provide prepaid postsecondary tuition
scholarships to economically disadvantaged youth.
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