The Florida Senate

“Tuition” means the basic fee charged to a student for instruction provided by a public postsecondary educational institution in this state. A charge for any other purpose shall not be included within this fee.

“Out-of-state fee” means the additional fee for instruction provided by a public postsecondary educational institution in this state, which fee is charged to a student who does not qualify for the in-state tuition rate pursuant to s. 1009.21. A charge for any other purpose shall not be included within this fee.

“Tuition differential” means the supplemental fee charged to a student by a public university in this state pursuant to s. 1009.24(16).

As used in this section, the term:

With respect to a dependent child, the legal residence of the dependent child’s parent or parents is prima facie evidence of the dependent child’s legal residence, which evidence may be reinforced or rebutted, relative to the age and general circumstances of the dependent child, by the other evidence of legal residence required of or presented by the dependent child. However, the legal residence of a dependent child’s parent or parents who are domiciled outside this state is not prima facie evidence of the dependent child’s legal residence if that dependent child has lived in this state for 5 consecutive years prior to enrolling or reregistering at the institution of higher education at which resident status for tuition purposes is sought.

In making a domiciliary determination related to the classification of a person as a resident or nonresident for tuition purposes, the domicile of a married person, irrespective of sex, shall be determined, as in the case of an unmarried person, by reference to all relevant evidence of domiciliary intent. For the purposes of this section:

A person shall not lose his or her resident status for tuition purposes solely by reason of serving, or, if such person is a dependent child, by reason of his or her parent’s or parents’ serving, in the Armed Forces outside this state.

A person who has been properly classified as a resident for tuition purposes but who, while enrolled in an institution of higher education in this state, loses his or her resident tuition status because the person or, if he or she is a dependent child, the person’s parent or parents establish domicile or legal residence elsewhere shall continue to enjoy the in-state tuition rate for a statutory grace period, which period shall be measured from the date on which the circumstances arose that culminated in the loss of resident tuition status and shall continue for 12 months. However, if the 12-month grace period ends during a semester or academic term for which such former resident is enrolled, such grace period shall be extended to the end of that semester or academic term.

Any person who ceases to be enrolled at or who graduates from an institution of higher education while classified as a resident for tuition purposes and who subsequently abandons his or her domicile in this state shall be permitted to reenroll at an institution of higher education in this state as a resident for tuition purposes without the necessity of meeting the 12-month durational requirement of this section if that person has reestablished his or her domicile in this state within 12 months of such abandonment and continuously maintains the reestablished domicile during the period of enrollment. The benefit of this subsection shall not be accorded more than once to any one person.

The following persons shall be classified as residents for tuition purposes:

Once a student has been classified as a resident for tuition purposes, an institution of higher education to which the student transfers is not required to reevaluate the classification unless inconsistent information suggests that an erroneous classification was made or the student’s situation has changed. However, the student must have attended the institution making the initial classification within the prior 12 months, and the residency classification must be noted on the student’s transcript. The Higher Education Coordinating Council shall consider issues related to residency determinations and make recommendations relating to efficiency and effectiveness of current law.

Each institution of higher education shall establish a residency appeal committee comprised of at least three members to consider student appeals of residency determinations, in accordance with the institution’s official appeal process. The residency appeal committee must render to the student the final residency determination in writing. The institution must advise the student of the reasons for the determination.

The State Board of Education and the Board of Governors shall adopt rules to implement this section.

This section applies to students enrolled in workforce education programs who are reported for funding, except that college credit fees for the ¹community colleges are governed by s. 1009.23.

All students shall be charged fees except students who are exempt from fees or students whose fees are waived.

A district school board or ¹community college board that has a service area that borders another state may implement a plan for a differential out-of-state fee.

Each district school board and ¹community college board of trustees may establish a separate fee for financial aid purposes in an additional amount of up to 10 percent of the student fees collected for workforce education programs. All fees collected shall be deposited into a separate workforce education student financial aid fee trust fund of the school district or ¹community college to support students enrolled in workforce education programs. Any undisbursed balance remaining in the trust fund and interest income accruing to investments from the trust fund shall increase the total funds available for distribution to workforce education students. Awards shall be based on student financial need and distributed in accordance with a nationally recognized system of need analysis approved by the State Board of Education. Fees collected pursuant to this subsection shall be allocated in an expeditious manner.

Each district school board and ¹community college board of trustees is authorized to establish a separate fee for technology, not to exceed 5 percent of tuition per credit hour or credit-hour equivalent for resident students and not to exceed 5 percent of tuition and the out-of-state fee per credit hour or credit-hour equivalent for nonresident students. Revenues generated from the technology fee shall be used to enhance instructional technology resources for students and faculty and shall not be included in any award under the Florida Bright Futures Scholarship Program. Fifty percent of technology fee revenues may be pledged by a ¹community college board of trustees as a dedicated revenue source for the repayment of debt, including lease-purchase agreements, not to exceed the useful life of the asset being financed. Revenues generated from the technology fee may not be bonded.

Each district school board and ¹community college board of trustees is authorized to establish specific fees for workforce development instruction not reported for state funding purposes or for workforce development instruction not reported as state funded full-time equivalent students. District school boards and ¹community college boards of trustees are not required to charge any other fee specified in this section for this type of instruction.

¹Community college boards of trustees and district school boards are not authorized to charge students enrolled in workforce development programs any fee that is not specifically authorized by statute. In addition to tuition, out-of-state, financial aid, capital improvement, and technology fees, as authorized in this section, ¹community college boards of trustees and district school boards are authorized to establish fee schedules for the following user fees and fines: laboratory fees; parking fees and fines; library fees and fines; fees and fines relating to facilities and equipment use or damage; access or identification card fees; duplicating, photocopying, binding, or microfilming fees; standardized testing fees; diploma replacement fees; transcript fees; application fees; graduation fees; and late fees related to registration and payment. Such user fees and fines shall not exceed the cost of the services provided and shall only be charged to persons receiving the service. Parking fee revenues may be pledged by a ¹community college board of trustees as a dedicated revenue source for the repayment of debt, including lease-purchase agreements, with an overall term of not more than 7 years, including renewals, extensions, and refundings, and revenue bonds with a term not exceeding 20 years and not exceeding the useful life of the asset being financed. ¹Community colleges shall use the services of the Division of Bond Finance of the State Board of Administration to issue any revenue bonds authorized by this subsection. Any such bonds issued by the Division of Bond Finance shall be in compliance with the provisions of the State Bond Act. Bonds issued pursuant to the State Bond Act may be validated in the manner established in chapter 75. The complaint for such validation shall be filed in the circuit court of the county where the seat of state government is situated, the notice required to be published by s. 75.06 shall be published only in the county where the complaint is filed, and the complaint and order of the circuit court shall be served only on the state attorney of the circuit in which the action is pending.

Each school district and ¹community college may assess a service charge for the payment of tuition and fees in installments. Such service charge must be approved by the district school board or ¹community college board of trustees.

Any school district or ¹community college that reports students who have not paid fees in an approved manner in calculations of full-time equivalent enrollments for state funding purposes shall be penalized at a rate equal to 2 times the value of such enrollments. Such penalty shall be charged against the following year’s allocation from workforce education funds or the ¹Community College Program Fund and shall revert to the General Revenue Fund. The State Board of Education shall specify, as necessary in rule, approved methods of student fee payment. Such methods must include, but need not be limited to, student fee payment; payment through federal, state, or institutional financial aid; and employer fee payments.

Each school district and ¹community college shall report only those students who have actually enrolled in instruction provided or supervised by instructional personnel under contract with the district or ¹community college in calculations of actual full-time enrollments for state funding purposes. A student who has been exempted from taking a course or who has been granted academic or technical credit through means other than actual coursework completed at the granting institution may not be calculated for enrollment in the course from which the student has been exempted or for which the student has been granted credit. School districts and ¹community colleges that report enrollments in violation of this subsection shall be penalized at a rate equal to 2 times the value of such enrollments. Such penalty shall be charged against the following year’s allocation from workforce education funds and shall revert to the General Revenue Fund.

Unless otherwise provided, this section applies only to fees charged for college credit instruction leading to an associate in arts degree, an associate in applied science degree, an associate in science degree, or a baccalaureate degree authorized pursuant to s. 1007.33, for noncollege credit college-preparatory courses defined in s. 1004.02, and for educator preparation institute programs defined in s. 1004.85.

Each ¹community college board of trustees shall establish tuition and out-of-state fees, which may vary no more than 10 percent below and 15 percent above the combined total of the standard tuition and fees established in subsection (3).

Except as otherwise provided in law, the sum of nonresident student tuition and out-of-state fees must be sufficient to defray the full cost of each program.

A ¹community college board of trustees that has a service area that borders another state may implement a plan for a differential out-of-state fee.

Each ¹community college board of trustees may establish a separate activity and service fee not to exceed 10 percent of the tuition fee, according to rules of the State Board of Education. The student activity and service fee shall be collected as a component part of the tuition and fees. The student activity and service fees shall be paid into a student activity and service fund at the ¹community college and shall be expended for lawful purposes to benefit the student body in general. These purposes include, but are not limited to, student publications and grants to duly recognized student organizations, the membership of which is open to all students at the ¹community college without regard to race, sex, or religion. No ¹community college shall be required to lower any activity and service fee approved by the board of trustees of the ¹community college and in effect prior to October 26, 2007, in order to comply with the provisions of this subsection.

Any ¹community college that reports students who have not paid fees in an approved manner in calculations of full-time equivalent enrollments for state funding purposes shall be penalized at a rate equal to two times the value of such enrollments. Such penalty shall be charged against the following year’s allocation from the ¹Community College Program Fund and shall revert to the General Revenue Fund.

Each ¹community college board of trustees is authorized to establish a separate fee for technology, which may not exceed 5 percent of tuition per credit hour or credit-hour equivalent for resident students and may not exceed 5 percent of tuition and the out-of-state fee per credit hour or credit-hour equivalent for nonresident students. Revenues generated from the technology fee shall be used to enhance instructional technology resources for students and faculty. The technology fee may apply to both college credit and college-preparatory instruction and shall not be included in any award under the Florida Bright Futures Scholarship Program. Fifty percent of technology fee revenues may be pledged by a ¹community college board of trustees as a dedicated revenue source for the repayment of debt, including lease-purchase agreements, not to exceed the useful life of the asset being financed. Revenues generated from the technology fee may not be bonded.

The State Board of Education shall specify, as necessary, by rule, approved methods of student fee payment. Such methods shall include, but not be limited to, student fee payment; payment through federal, state, or institutional financial aid; and employer fee payments.

Each ¹community college board of trustees shall report only those students who have actually enrolled in instruction provided or supervised by instructional personnel under contract with the ¹community college in calculations of actual full-time equivalent enrollments for state funding purposes. No student who has been exempted from taking a course or who has been granted academic or career credit through means other than actual coursework completed at the granting institution shall be calculated for enrollment in the course from which he or she has been exempted or granted credit. ¹Community colleges that report enrollments in violation of this subsection shall be penalized at a rate equal to two times the value of such enrollments. Such penalty shall be charged against the following year’s allocation from the ¹Community College Program Fund and shall revert to the General Revenue Fund.

Each ¹community college may assess a service charge for the payment of tuition and fees in installments and a convenience fee for the processing of automated or online credit card payments. However, the amount of the convenience fee may not exceed the total cost charged by the credit card company to the ¹community college. Such service charge or convenience fee must be approved by the ¹community college board of trustees.

The State Board of Education shall adopt a rule specifying the definitions and procedures to be used in the calculation of the percentage of cost paid by students. The rule must provide for the calculation of the full cost of educational programs based on the allocation of all funds provided through the general current fund to programs of instruction, and other activities as provided in the annual expenditure analysis. The rule shall be developed in consultation with the Legislature.

This section applies to students enrolled in college credit programs at state universities.

All students shall be charged fees except students who are exempt from fees or students whose fees are waived.

All moneys from tuition and fees shall be deposited pursuant to s. 1011.42.

A university may implement a differential out-of-state fee in accordance with regulations developed by the Board of Governors for the following:

Students who are enrolled in Programs in Medical Sciences are considered graduate students for the purpose of enrollment and student fees.

A university board of trustees is authorized to collect for financial aid purposes an amount not to exceed 5 percent of the tuition and out-of-state fee. The revenues from fees are to remain at each campus and replace existing financial aid fees. Such funds shall be disbursed to students as quickly as possible. A minimum of 75 percent of funds from the student financial aid fee shall be used to provide financial aid based on absolute need. The Board of Governors shall develop criteria for making financial aid awards. Each university shall report annually to the Board of Governors and the Department of Education on the revenue collected pursuant to this subsection, the amount carried forward, the criteria used to make awards, the amount and number of awards for each criterion, and a delineation of the distribution of such awards. The report shall include an assessment by category of the financial need of every student who receives an award, regardless of the purpose for which the award is received. Awards which are based on financial need shall be distributed in accordance with a nationally recognized system of need analysis approved by the Board of Governors. An award for academic merit shall require a minimum overall grade point average of 3.0 on a 4.0 scale or the equivalent for both initial receipt of the award and renewal of the award.

The Capital Improvement Trust Fund fee is established as $2.44 per credit hour per semester. The building fee is established as $2.32 per credit hour per semester.

Each university board of trustees is authorized to establish separate activity and service, health, and athletic fees. When duly established, the fees shall be collected as component parts of tuition and fees and shall be retained by the university and paid into the separate activity and service, health, and athletic funds. Notwithstanding any other provision of law to the contrary, a university may transfer revenues derived from the fees authorized pursuant to this subsection to a university direct-support organization of the university to be used only for the purpose of paying and securing debt on projects approved pursuant to s. 1010.62 and pursuant to a written agreement approved by the Board of Governors. The amount transferred may not exceed the amount authorized for annual debt service pursuant to s. 1010.62.

Each university board of trustees shall establish a student health fee on the main campus of the university. The university board of trustees may also establish a student health fee on any branch campus or center. Any subsequent increase in the health fee must be recommended by a health committee, at least one-half of whom are students appointed by the student body president. The remainder of the committee shall be appointed by the university president. A chairperson, appointed jointly by the university president and the student body president, shall vote only in the case of a tie. The recommendations of the committee shall take effect only after approval by the university president, after consultation with the student body president, with final approval by the university board of trustees. An increase in the health fee may occur only once each fiscal year and must be implemented beginning with the fall term. The Board of Governors is responsible for adopting the regulations and timetables necessary to implement this fee.

Each university board of trustees shall establish a separate athletic fee on the main campus of the university. The university board may also establish a separate athletic fee on any branch campus or center. Any subsequent increase in the athletic fee must be recommended by an athletic fee committee, at least one-half of whom are students appointed by the student body president. The remainder of the committee shall be appointed by the university president. A chairperson, appointed jointly by the university president and the student body president, shall vote only in the case of a tie. The recommendations of the committee shall take effect only after approval by the university president, after consultation with the student body president, with final approval by the university board of trustees. An increase in the athletic fee may occur only once each fiscal year and must be implemented beginning with the fall term. The Board of Governors is responsible for adopting the regulations and timetables necessary to implement this fee.

Each university board of trustees may establish a technology fee of up to 5 percent of the tuition per credit hour. The revenue from this fee shall be used to enhance instructional technology resources for students and faculty. The technology fee may not be included in any award under the Florida Bright Futures Scholarship Program established pursuant to ss. 1009.53-1009.538.

Except as otherwise provided in subsection (15), each university board of trustees is authorized to establish the following fees:

With the exception of housing rental rates and except as otherwise provided, fees assessed pursuant to paragraphs (h)-(s) shall be based on reasonable costs of services. The Board of Governors shall adopt regulations and timetables necessary to implement the fees and fines authorized under this subsection. The fees assessed under this subsection may be used for debt only as authorized under s. 1010.62.

Each university board of trustees may establish a tuition differential for undergraduate courses upon receipt of approval from the Board of Governors. The tuition differential shall promote improvements in the quality of undergraduate education and shall provide financial aid to undergraduate students who exhibit financial need.

A state university may not charge any fee except as specifically authorized by law.

The Board of Governors shall adopt regulations to implement the provisions of this section.

The following students are exempt from any requirement for the payment of tuition and fees, including lab fees, for adult basic, adult secondary, or career-preparatory instruction:

The following students are exempt from the payment of tuition and fees, including lab fees, at a school district that provides postsecondary career programs, ¹community college, or state university:

Each ¹community college is authorized to grant student fee exemptions from all fees adopted by the State Board of Education and the ¹community college board of trustees for up to 40 full-time equivalent students at each institution.

School districts and ¹community colleges may waive fees for any fee-nonexempt student. The total value of fee waivers granted by the school district or ¹community college may not exceed the amount established annually in the General Appropriations Act. Any student whose fees are waived in excess of the authorized amount may not be reported for state funding purposes. Any school district or ¹community college that waives fees and requests state funding for a student in violation of the provisions of this section shall be penalized at a rate equal to 2 times the value of the full-time student enrollment reported.

A state university may waive any or all application, tuition, and related fees for persons who supervise student interns for a state university.

A university board of trustees is authorized to permit full-time university employees who meet academic requirements to enroll for up to 6 credit hours of tuition-free courses per term on a space-available basis.

A state university may waive any or all application, tuition, and related fees for persons 60 years of age or older who are residents of this state and who attend classes for credit. No academic credit shall be awarded for attendance in classes for which fees are waived under this subsection. This privilege may be granted only on a space-available basis, if such classes are not filled as of the close of registration. A university may limit or deny the privilege for courses which are in programs for which the Board of Governors has established selective admissions criteria. Persons paying full fees and state employees taking courses on a space-available basis shall have priority over those persons whose fees are waived in all cases where classroom spaces are limited.

Any graduate student enrolled in a state-approved school psychology training program shall be entitled to a waiver of registration fees for internship credit hours applicable to an internship in the public school system under the supervision of a Department of Education certified school psychologist employed by the school system.

A university board of trustees may waive the out-of-state fees for nondegree-seeking students enrolled at a state university if the earned student credit hours generated by such students are nonfundable and the direct cost for the program of study is recovered from the fees charged to all students.

The spouse of a deceased state employee is entitled, when eligible for the payment of student fees by the state as employer pursuant to s. 440.16, in lieu of such payment, to a full waiver of student fees for up to 80 semester hours in any ¹community college.

A state university or ¹community college shall waive undergraduate tuition for each recipient of a Purple Heart or another combat decoration superior in precedence who:

Such a waiver for a Purple Heart recipient or recipient of another combat decoration superior in precedence shall be applicable for 110 percent of the number of required credit hours of the degree or certificate program for which the student is enrolled.

Each university board of trustees is authorized to waive tuition and out-of-state fees for purposes that support and enhance the mission of the university. All fees waived must be based on policies that are adopted by university boards of trustees pursuant to regulations adopted by the Board of Governors. Each university shall report the purpose, number, and value of all fee waivers granted annually in a format prescribed by the Board of Governors.

A state university or ¹community college may waive tuition and fees for a classroom teacher, as defined in s. 1012.01(2)(a), who is employed full-time by a school district and who meets the academic requirements established by the ¹community college or state university for up to 6 credit hours per term on a space-available basis in undergraduate courses approved by the Department of Education. Such courses shall be limited to undergraduate courses related to special education, mathematics, or science. The waiver may not be used for courses scheduled during the school district’s regular school day. The State Board of Education shall adopt a rule that prescribes the process for the approval of courses by the department.

As a benefit to the employer and employees of the state, subject to approval by an employee’s agency head or the equivalent, each state university and ¹community college shall waive tuition and fees for state employees to enroll for up to 6 credit hours of courses per term on a space-available basis.

The Chief Financial Officer, in cooperation with the ¹community colleges and state universities, shall identify and implement ways to ease the administrative burden to ¹community colleges and state universities, including, but not limited to, providing easier access to verify state employment.

From funds appropriated by the Legislature for administrative costs to implement this section, ¹community colleges and state universities shall be reimbursed on a pro rata basis according to the cost assessment data developed by the Department of Education.

The Auditor General shall include a review of the cost assessment data in conjunction with his or her audit responsibilities for ¹community colleges, state universities, and the Department of Education.

For purposes of this section, employees of the state include employees of the executive, legislative, and judicial branches of state government, except for persons employed by a state university.

School districts, ¹community colleges, and state universities may defer tuition and fees for students receiving financial aid from a federal or state assistance program when the aid is delayed in being transmitted to the student through circumstances beyond the control of the student. The failure to make timely application for the aid is an insufficient reason to receive a deferral of fees.

Any veteran or other eligible student who receives benefits under chapter 30, chapter 31, chapter 32, chapter 33, chapter 34, or chapter 35 of Title 38, U.S.C., or chapter 106 of Title 10, U.S.C., is entitled to one deferment each academic year and an additional deferment each time there is a delay in the receipt of benefits.

Each school district, ¹community college, and state university is responsible for collecting all deferred fees. If a school district, ¹community college, or state university has not collected a deferred fee, the student may not earn state funding for any course for which the student subsequently registers until the fee has been paid.

It is the intent of the Legislature to encourage each undergraduate student who enrolls in a state university to complete the student’s respective baccalaureate degree program in the most efficient way possible while providing for access to additional college coursework. Therefore, the Legislature intends to enact a policy that provides incentives for efficient baccalaureate degree completion.

State universities shall require a student to pay an excess hour surcharge equal to 50 percent of the tuition rate for each credit hour in excess of 120 percent of the number of credit hours required to complete the baccalaureate degree program in which the student is enrolled.

Except as otherwise provided by law and for purposes of this section, the following credit hours shall be included when calculating the number of hours taken by a student:

For purposes of this section, credit hours earned under the following circumstances are not calculated as hours required to earn a baccalaureate degree:

Each state university and ¹community college shall implement a process for notifying students regarding the provisions of this section. Notice must be provided by a state university or a ¹community college upon a student’s initial enrollment in the institution. Such notice must be provided a second time by a state university when a student has earned the credit hours required to complete the baccalaureate degree program in which the student is enrolled. The notice must include a recommendation that each student who intends to earn credit hours at the institution in excess of the credit hours required for the baccalaureate degree program in which the student is enrolled meet with his or her academic advisor.

For purposes of this section, the term “state university” includes the institutions identified in s. 1000.21(6) and the term “¹community college” includes the institutions identified in s. 1000.21(3).

The provisions of this section become effective for students who enter a ¹community college or a state university for the first time in the 2009-2010 academic year and thereafter.

Student tuition and registration fees at each state university and ¹community college shall include up to $4.68 per quarter, or $7.02 per semester, per full-time student, or the per-student credit hour equivalents of such amounts. The fees provided for by this section shall be adjusted from time to time, as necessary, to comply with the debt service coverage requirements of the student loan revenue bonds issued pursuant to s. 1009.79. If the Division of Bond Finance of the State Board of Administration and the Commissioner of Education determine that such fees are no longer required as security for revenue bonds issued pursuant to ss. 1009.78-1009.88, moneys previously collected pursuant to this section which are held in escrow, after administrative expenses have been met and up to $150,000 has been used to establish a financial aid data processing system for the state universities incorporating the necessary features to meet the needs of all 11 universities for application through disbursement processing, shall be reallocated to the generating institutions to be used for student financial aid programs, including, but not limited to, scholarships and grants for educational purposes. Upon such determination, such fees shall no longer be assessed and collected.

The Department of Education may, in accordance with rules established by the State Board of Administration, receive and administer grants and donations from any source and, in its discretion, establish criteria, select recipients, and award scholarships and loans from the fees provided for by this section, and fix the interest rates and terms of repayment.

LEGISLATIVE FINDING; EDUCATIONAL OPPORTUNITY.—The Legislature recognizes that educational opportunity at the postsecondary level is a critical state interest and is best ensured through the provision of postsecondary institutions that are geographically and financially accessible, that affordability and accessibility of higher education are essential to the welfare and well-being of the residents of the state and are a critical state interest, and that promoting and enhancing financial access to postsecondary institutions serve a legitimate public purpose.

LEGISLATIVE INTENT.—It is the intent of the Legislature that a prepaid program be established through which many of the costs associated with postsecondary attendance may be paid in advance and fixed at a guaranteed level for the duration of undergraduate enrollment and that this program fosters timely financial planning for postsecondary attendance and to encourage employer participation in such planning through program contributions on behalf of employees and the dependents of employees. It is further the intent of the Legislature that a savings program be established as a supplement and alternative to the prepaid program to allow persons to make contributions to a trust account to meet some or all of the qualified higher education expenses of a designated beneficiary, consistent with federal law authorizing such programs, but without a guarantee by the state that such contributions, together with the investment return on such contributions, if any, will be adequate to pay for qualified higher education expenses, to enable participants to save for qualified higher education expenses, and to provide a choice to persons who determine that the overall educational needs of their families are best suited to a savings program or who wish to save to meet postsecondary educational needs beyond the traditional 4-year curriculum. Finally, the Legislature intends that the prepaid program and the savings program be conducted in a manner to maximize program efficiency and effectiveness.

DEFINITIONS.—As used in ss. 1009.97-1009.984, the term:

FLORIDA PREPAID COLLEGE BOARD; CREATION.—The Florida Prepaid College Board is hereby created as a body corporate with all the powers of a body corporate for the purposes delineated in this section. The board shall administer the prepaid program and the savings program, and shall perform essential governmental functions as provided in ss. 1009.97-1009.984. For the purposes of s. 6, Art. IV of the State Constitution, the board shall be assigned to and administratively housed within the State Board of Administration, but it shall independently exercise the powers and duties specified in ss. 1009.97-1009.984.

FLORIDA PREPAID COLLEGE BOARD; MEMBERSHIP.—The board shall consist of seven members to be composed of the Attorney General, the Chief Financial Officer, the Chancellor of the State University System, the Deputy Commissioner of ¹Community Colleges, and three members appointed by the Governor and subject to confirmation by the Senate. Each member appointed by the Governor shall possess knowledge, skill, and experience in the areas of accounting, actuary, risk management, or investment management. Each member of the board not appointed by the Governor may name a designee to serve on the board on behalf of the member; however, any designee so named shall meet the qualifications required of gubernatorial appointees to the board. Members appointed by the Governor shall serve terms of 3 years. Any person appointed to fill a vacancy on the board shall be appointed in a like manner and shall serve for only the unexpired term. Any member shall be eligible for reappointment and shall serve until a successor qualifies. Members of the board shall serve without compensation but shall be reimbursed for per diem and travel in accordance with s. 112.061. Each member of the board shall file a full and public disclosure of his or her financial interests pursuant to s. 8, Art. II of the State Constitution and corresponding statute.

FLORIDA PREPAID COLLEGE BOARD; ELECTIONS; MEETINGS.—The board shall annually elect a board member to serve as chair and a board member to serve as vice chair and shall designate a secretary-treasurer who need not be a member of the board. The secretary-treasurer shall keep a record of the proceedings of the board and shall be the custodian of all printed material filed with or by the board and of its official seal. Notwithstanding the existence of vacancies on the board, a majority of the members shall constitute a quorum. The board shall take no official action in the absence of a quorum. The board shall meet, at a minimum, on a quarterly basis at the call of the chair.

FLORIDA PREPAID COLLEGE BOARD; POWERS AND DUTIES.—The board shall have the powers and duties necessary or proper to carry out the provisions of ss. 1009.97-1009.984, including, but not limited to, the power and duty to:

FLORIDA PREPAID COLLEGE BOARD; CONTRACTUAL SERVICES.—The board shall solicit proposals and contract, pursuant to s. 287.057, for:

The goals of the board in procuring such services shall be to provide all purchasers and benefactors with the most secure, well-diversified, and beneficially administered prepaid program or savings program possible, to allow all qualified firms interested in providing such services equal consideration, and to provide such services to the state at no cost and to the purchasers and benefactors at the lowest cost possible. Evaluations of proposals submitted pursuant to this subsection shall include, but not be limited to, fees and other costs that are charged to purchasers or benefactors that affect account values, or that impact the operational costs of the prepaid program or the savings program; past experience and past performance in providing the required services; financial history and current financial strength and capital adequacy to provide the required services; and capabilities and experience of the proposed personnel that will provide the required services.

QUALIFIED TUITION PROGRAM STATUS.—Notwithstanding any other provision of ss. 1009.97-1009.984, the board may adopt rules necessary for the prepaid program and the savings program each to retain its status as a “qualified tuition program” in order to maintain its tax-exempt status or other similar status of the program, purchasers, and qualified beneficiaries under the Internal Revenue Code. The board shall inform participants in the prepaid program and the savings program of changes to the tax or securities status of advance purchase contracts and participation agreements.

There is created within the State Board of Administration the Florida Prepaid College Trust Fund. The trust fund shall be segregated into two separate funds, the prepaid fund and the savings fund.

The prepaid fund shall consist of state appropriations, moneys acquired from other governmental or private sources for the prepaid program, and moneys remitted in accordance with advance payment contracts. Dividends, interest, and gains accruing to the prepaid fund shall increase the total funds available for the prepaid program. If dividends, interest, and gains for the prepaid fund exceed the amount necessary for program administration and disbursements, the board may designate an additional percentage of the prepaid fund to serve as a contingency fund.

The savings fund shall consist of appropriations, moneys acquired from other governmental or private sources for the savings program, and moneys remitted in accordance with participation agreements. The amounts on deposit in the savings fund shall remain therein and shall be available solely for carrying out the purposes of the savings program.

Any balance contained within the trust fund, and within each fund in the trust fund, at the end of a fiscal year shall remain therein and shall be available for carrying out the purposes of each respective program and the direct-support organization established pursuant to s. 1009.983. Moneys contained within the trust fund shall be exempt from the investment requirements of s. 17.57. All funds deposited in the prepaid fund may be invested pursuant to s. 215.47. Any funds of a direct-support organization created pursuant to s. 1009.983 shall be exempt from the provisions of this section.

Notwithstanding chapter 717, funds associated with terminated advance payment contracts pursuant to s. 1009.98(4)(k) and canceled contracts for which no refunds have been claimed shall be retained by the board. The board shall establish procedures for notifying purchasers who subsequently cancel their advance payment contracts of any unclaimed refund and shall establish a time period after which no refund may be claimed by a purchaser who canceled a contract. The board may transfer funds retained from such terminated advance payment contracts and canceled contracts to the Florida Prepaid Tuition Scholarship Program to provide matching funds for prepaid tuition scholarships for economically disadvantaged youth who remain drug free and crime free. In addition, such funds may be used for any other scholarship programs approved by the board under s. 1009.983(8)(b), provided that any matching funds are obtained solely from the private sector.

The assets of the prepaid fund and the savings fund shall be maintained, invested, and expended solely for the purposes of the prepaid program and the savings program, respectively, and shall not be loaned, transferred, or otherwise used by the state for any purpose other than the purposes of ss. 1009.97-1009.984. This subsection shall not be construed to prohibit the board from investing in, by purchase or otherwise, bonds, notes, or other obligations of the state or an agency or instrumentality of the state. Unless otherwise specified by the board, assets of the prepaid fund and the savings fund shall be expended in the following order of priority:

STANLEY G. TATE FLORIDA PREPAID COLLEGE PROGRAM; CREATION.—There is created the Stanley G. Tate Florida Prepaid College Program to provide a medium through which the cost of registration and dormitory residence may be paid in advance of enrollment in a state postsecondary institution at a rate lower than the projected corresponding cost at the time of actual enrollment. Such payments shall be combined and invested in a manner that yields, at a minimum, sufficient interest to generate the difference between the prepaid amount and the cost of registration and dormitory residence at the time of actual enrollment. Students who enroll in a state postsecondary institution pursuant to this section shall be charged no fees in excess of the terms delineated in the advance payment contract.

PREPAID COLLEGE PLANS.—At a minimum, the board shall make advance payment contracts available for two independent plans to be known as the ¹community college plan and the university plan. The board may also make advance payment contracts available for a dormitory residence plan. The board may restrict the number of participants in the ¹community college plan, university plan, and dormitory residence plan, respectively. However, any person denied participation solely on the basis of such restriction shall be granted priority for participation during the succeeding year.

TRANSFER OF BENEFITS TO PRIVATE AND OUT-OF-STATE COLLEGES AND UNIVERSITIES AND TO CAREER CENTERS.—A qualified beneficiary may apply the benefits of an advance payment contract toward any eligible educational institution as defined in s. 529 of the Internal Revenue Code. The board shall transfer or cause to be transferred to the institution designated by the qualified beneficiary an amount not to exceed the redemption value of the advance payment contract at a state postsecondary institution. If the cost of registration or housing fees at such institution is less than the corresponding fees at a state postsecondary institution, the amount transferred may not exceed the actual cost of registration and housing fees. A transfer authorized under this subsection may not exceed the number of semester credit hours or semesters of dormitory residence contracted on behalf of a qualified beneficiary. Any advertisement disseminated by a for-profit educational institution which references the Stanley G. Tate Florida Prepaid College Program shall clearly state the following: “While the benefits of the Florida Prepaid College contract may be used at this institution, the Florida Prepaid College Board does not endorse any particular educational institution.”

ADVANCE PAYMENT CONTRACTS.—The board shall develop advance payment contracts for registration and may develop advance payment contracts for dormitory residence as provided in this section. Advance payment contracts shall be exempt from chapter 517 and the Florida Insurance Code. Such contracts shall include, but not be limited to, the following:

REFUNDS.—

CONFIDENTIALITY OF ACCOUNT INFORMATION.—Information that identifies the purchasers or beneficiaries of any plan promulgated under this section and their advance payment account activities is exempt from the provisions of s. 119.07(1). However, the board may authorize the program’s records administrator to release such information to a ¹community college, college, or university in which a beneficiary may enroll or is enrolled. ¹Community colleges, colleges, and universities shall maintain such information as exempt from the provisions of s. 119.07(1).

OBLIGATIONS OF BOARD.—The state shall agree to meet the obligations of the board to qualified beneficiaries if moneys in the fund fail to offset the obligations of the board. The Legislature shall appropriate to the Florida Prepaid College Trust Fund the amount necessary to meet the obligations of the board to qualified beneficiaries.

PROGRAM TERMINATION.—In the event that the state determines the prepaid program to be financially infeasible, the state may discontinue the provision of the program. Any qualified beneficiary who has been accepted by and is enrolled or is within 5 years of enrollment in an eligible independent college or university or state postsecondary institution shall be entitled to exercise the complete benefits for which he or she has contracted. All other contract holders shall receive a refund of the amount paid in and an additional amount in the nature of interest at a rate that corresponds, at a minimum, to the prevailing interest rates for savings accounts provided by banks and savings and loan associations.

SCHOLARSHIPS.—A nonprofit organization described in s. 501(c)(3) of the United States Internal Revenue Code and exempt from taxation under s. 501(a) of the United States Internal Revenue Code may purchase advance payment contracts for a scholarship program that has been approved by the board and is operated by the purchasing organization.

PAYMENTS ON BEHALF OF QUALIFIED BENEFICIARIES.—

PARTICIPATION AGREEMENTS.—

DISTRIBUTIONS FOR QUALIFIED HIGHER EDUCATION EXPENSES.—The board shall establish requirements and procedures for beneficiaries to realize the benefits of participation agreements. In establishing such requirements and procedures, the board shall make distributions in as efficient and expeditious manner as is prudent and possible, consistent with the Internal Revenue Code.

REFUNDS.—

MATERIAL MISREPRESENTATION; PENALTY.—If the benefactor or the designated beneficiary makes any material misrepresentation in the application for a participation agreement or in any communication with the board regarding the program, especially regarding the withdrawal or distribution of funds therefrom, the account may be involuntarily liquidated by the board. If the account is so liquidated, the benefactor is entitled to a refund, subject to a 10-percent penalty or the amount required by the Internal Revenue Code.

CONFIDENTIALITY OF ACCOUNT INFORMATION.—Information that identifies the benefactors or the designated beneficiary of any account initiated under this section is confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution. However, the board may authorize the release of such information to a ¹community college, college, or university in which a designated beneficiary may enroll or is enrolled. ¹Community colleges, colleges, and universities shall maintain the confidentiality of such information.

OBLIGATIONS OF BOARD.—Any contract or participation agreement entered into by or any obligation of the board on behalf of and for the benefit of the savings program does not constitute a debt or obligation of the state but is an obligation of the savings program. The state has no obligation to any designated beneficiary or any other person as a result of the savings program. The obligation of the savings program is limited solely to those amounts deposited in the savings fund. All amounts obligated to be paid from the savings fund are limited to amounts available for such obligation. The amounts on deposit in the savings program may only be disbursed in accordance with the provisions of this section.

PROGRAM TERMINATION.—The savings program shall continue in existence until its existence is terminated by law. If the state determines that the savings program is financially infeasible, the state may discontinue the savings program. Upon termination of the savings program, all deposits shall be returned to benefactors, to the extent possible, and any unclaimed assets in the savings program may be transferred to the Florida Prepaid Tuition Scholarship Program to provide matching funds for prepaid tuition scholarships for economically disadvantaged youths who remain drug free and crime free.

STATE PLEDGE.—The state pledges to benefactors and designated beneficiaries of the savings program that the state will not limit or alter the rights under this section which are vested in the program until such obligations are met and discharged. However, this subsection does not preclude such limitation if adequate provision is made by law for the protection of the benefactors and designated beneficiaries pursuant to the obligations of the board, and, if the state or the board determines that the savings program is not financially feasible, the state or the board may discontinue the program. If the program is discontinued, the board shall refund to benefactors their contributions to the program, plus any investment earnings or minus any investment losses. The board, on behalf of the state, may include this pledge and undertaking by the state in participation agreements.

The Florida Prepaid College Board may establish a direct-support organization which is:

The direct-support organization shall operate under written contract with the board. The contract must provide for:

The direct-support organization shall provide for an annual financial audit in accordance with s. 215.981. The board and Auditor General may require and receive from the organization or its independent auditor any detail or supplemental data relative to the operation of the organization.

The identity of donors who desire to remain anonymous shall be confidential and exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I of the State Constitution, and such anonymity shall be maintained in the auditor’s report. Information received by the organization that is otherwise confidential or exempt by law shall retain such status. Any sensitive, personal information regarding contract beneficiaries, including their identities, is exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I of the State Constitution.

The chair and the executive director of the board shall be directors of the direct-support organization and shall jointly name, at a minimum, three other individuals to serve as directors of the organization.

The board may authorize the direct-support organization established in this section to use board property, except money, and use facilities and personal services subject to the provisions of this section. If the direct-support organization does not provide equal employment opportunities to all persons regardless of race, color, religion, sex, age, or national origin, it may not use the property, facilities, or personal services of the board. For the purposes of this section, the term “personal services” includes full-time personnel and part-time personnel as well as payroll processing as prescribed by rule of the board. The board shall adopt rules prescribing the procedures by which the direct-support organization is governed and any conditions with which such a direct-support organization must comply to use property, facilities, or personal services of the board.

The board may invest funds of the direct-support organization which have been allocated for the purchase of advance payment contracts for scholarships with receipts for advance payment contracts.

Provide an incentive for economically disadvantaged youth to improve school attendance and academic performance in order to graduate and pursue a postsecondary education.

Obtain the commitment and involvement of private sector entities by virtue of funding matches with a ratio of 50 percent provided by the private sector and 50 percent provided by the state.

Purchase prepaid tuition scholarships for students certified by the Department of Education to the direct-support organization who meet minimum economic and school requirements and remain drug free and crime free.

“Authority” means any public corporation created by s. 1009.993 or any board, body, commission, department, or officer of the county succeeding to the principal functions thereof or to whom the powers conferred upon an authority by this act are given by this act.

“Authority loan” means any loan by an authority to an institution of higher education for the purpose of funding education loans.

“Bond” or “revenue bond” means any revenue bond of an authority issued under the provisions of this act, including any revenue-refunding bond, notwithstanding that the bond may be secured by mortgage or the full faith and credit of a participating institution of higher education or any other lawfully pledged security of a participating institution of higher education.

“Bond resolution” means the resolution of an authority and the trust agreement, if any, and any supplement or amendment to the foregoing, authorizing the issuance of, and providing for the terms and conditions applicable to, obligations.

“Bond service charge” means the principal (including mandatory sinking fund requirements for retirement of obligations) and interest, and redemption premium, if any, required to be paid by an authority on obligations.

“Borrower” means any student who has received an education loan or any parent who has received or agreed to pay an education loan.

“Clerk” means the clerk of a commission or the county officer charged with the duties customarily imposed upon the clerk.

“Commission” means a board of county commissioners or other body charged with governing the county.

“Default insurance” means insurance insuring education loans, authority loans, or obligations against default.

“Default reserve fund” means a fund established pursuant to a bond resolution for the purpose of securing education loans, authority loans, or obligations.

“Education loan” means a loan which is made by an institution to a student or the parents of a student, or both, in an amount not in excess of the maximum amount specified in regulations to be formulated by the authority, in order to finance all or any part of the cost of the student’s attendance at such institution.

“Education loan series portfolio” means all educational loans made by a specific institution which are funded from the proceeds of an authority loan to such institution out of the proceeds of a related specific issue of obligations through the authority.

“Institution” means any college or university which, by virtue of law or charter, is accredited by and holds membership in the Commission on Recognition of Postsecondary Accreditation; which grants baccalaureate or associate degrees; which is not a pervasively sectarian institution; and which does not discriminate in the admission of students on the basis of race, color, religion, sex, or creed.

“Loan funding deposit” means moneys or other property which is deposited by an institution with the authority or a trustee for the purpose of:

which shall be in such amounts as are deemed necessary by the authority as a condition for participation by such institution in the program of the authority.

“Obligation” means any revenue bond, note, or other evidence of indebtedness of an authority, including any interest coupon pertaining thereto, issued under this act, including any refunding bond.

“Parent” means any parent or guardian of a student at an institution.

“Participating institution” means an institution of higher education which, pursuant to the provisions of this act, undertakes the financing of an educational student loan program or undertakes the refunding or refinancing of obligations, a mortgage, or advances as provided in and permitted by this act.

“Person” means any person, firm, partnership, association, corporation, or other body, public or private.

In each county there is created a public body corporate and politic to be known as the “  County Education Loan Authority.” Each such authority is constituted as a public instrumentality, and its exercise of the powers conferred by this act shall be deemed the performance of an essential public function. No authority shall transact any business or exercise any power pursuant to this act until the commission by ordinance or resolution declares that there is a need for an authority to function in such county.

The commission may adopt such an ordinance or resolution of need if it finds that the youth of the county and state do not have the opportunity to attend institutions of higher learning located within the county because of their inability to obtain financing for the cost of such education and the inability of such institutions to provide adequate financial aid to their students.

In any suit, action, or proceeding involving the validity or enforcement of or relating to any contract of the authority, the authority shall be conclusively deemed to have been established and authorized to transact business and exercise its powers hereunder upon proof of the adoption of an ordinance or resolution by the commission declaring the need for the authority. Such ordinance or resolution shall be sufficient if it declares that there is such a need for an authority in the county. A copy of such ordinance or resolution certified by the clerk shall be admissible in evidence in any suit, action, or proceeding.

The ordinance or resolution shall designate five persons as members of the authority. The membership of the authority shall include:

Of the members first appointed, one shall serve for 1 year, one for 2 years, one for 3 years, one for 4 years, and one for 5 years, in each case until his or her successor is appointed and has qualified. Thereafter, the commission shall appoint for terms of 5 years each members to succeed those whose terms will expire. The commission shall fill any vacancy for the unexpired portion of the term. Any member of the authority may be reappointed. Any member of the authority may be removed by the commission for misfeasance, malfeasance, or willful neglect of duty. Before entering upon his or her duties, each member of the authority shall take and subscribe to the oath or affirmation required by the State Constitution. A record of each such oath shall be filed with the Department of State and with the clerk.

The authority shall annually elect one of its members as chair and one as vice chair and shall also appoint an executive director who shall not be a member of the authority and who shall serve at the pleasure of the authority and receive such compensation as fixed by the authority.

The executive director shall keep a record of the proceedings of the authority and shall be custodian of all books, documents, and papers filed with the authority; the minute book or journal of the authority; and its official seal. The director may have copies made of all minutes and other records and documents of the authority and may give certificates under the official seal of the authority to the effect that such copies are true copies, and any person dealing with the authority may rely upon any such certificate.

Three members of the authority shall constitute a quorum, and the affirmative vote of a majority of the members present at a meeting shall be necessary for any action to be taken; however, any action may be taken by an authority with the unanimous consent of all of the members. A vacancy in the membership of the authority shall not impair the right of a quorum to exercise the rights or perform the duties of the authority. The majority shall not include any member who has a conflict of interest, and a statement by a member of a conflict of interest is conclusive for this purpose. Any action taken by the authority under the provisions of this act may be authorized by resolution at any regular or special meeting. Each such resolution shall take effect immediately and need not be published or posted.

The members of the authority shall receive no compensation for the performance of their duties, but each member, when engaged in the performance of such duties, shall be entitled to per diem and travel expenses as provided in s. 112.061.

Notwithstanding any other law to the contrary, it shall not be, nor shall it constitute, a conflict of interest for a trustee, director, officer, or employee of an institution to serve as a member of the authority.

To adopt rules for the regulation of its affairs and the conduct of its business.

To adopt an official seal.

To maintain an office at a place it designates.

To sue and be sued in its own name and to plead and be impleaded.

To establish rules for the use of education loan financing programs and to designate a participating institution as its agent to establish rules for the use of a program undertaken by such participating institution.

To issue obligations for the purpose of making authority loans to participating institutions for the purpose of providing education loans utilizing such eligibility standards for borrowers as the authority determines to be necessary, but such standards shall include the following:

To contract with financial institutions and other qualified loan origination and servicing organizations, which shall assist in prequalifying borrowers for education loans and which shall service and administer each education loan and the respective loan series portfolio of each institution, and to establish sufficient fees for each educational loan to cover the applicable pro rata cost of such servicing and originating organizations.

To establish criteria governing the eligibility of institutions to participate in its programs, the making and allocation of authority loans and education loans, provisions for default, the establishment of default reserve funds, the purchase of default insurance, the provision of prudent debt service reserves, and the furnishing by participating institutions of such additional guarantees of the education loans, authority loans, or obligations as the authority shall determine necessary to assure the marketability of the obligations and the adequacy of the security therefor; however, the provisions applicable to participation by Florida public participating institutions in the financing programs of the authority shall be subject to approval and authorization by the budgetary and other state agencies having jurisdiction over those institutions.

To fix, revise, charge, and collect rates, fees, and charges for services furnished by the authority and to contract with any person in respect thereto, including any financial institution, loan originator, servicer, administrator, issuer of letters of credit, or insurer.

To employ consultants, attorneys, accountants, financial experts, loan processors, bankers, managers, and such other employees and agents as may be necessary and to fix their compensation.

To receive and accept, from any source, loans, contributions, or grants for or in aid of an authority education loan financing program or any portion thereof and, when required, to use such funds, property, or labor only for the purposes for which it was loaned, contributed, or granted.

To make authority loans to institutions and require that the proceeds thereof be used solely for making education loans or for costs and fees in connection therewith and to require institutions to obtain certification from each borrower that proceeds from any education loan are used solely for the purpose intended by this act.

To charge to and apportion among participating institutions administrative and operating costs and expenses incurred in the exercise of the powers and duties conferred by this act.

To borrow working capital funds and other funds as may be necessary for startup and continuing operations, provided that such funds are borrowed solely in the name of the authority. Such borrowings shall be limited obligations of the character described in s. 1009.9975 and shall be payable solely from revenues of the authority or proceeds of obligations pledged for that purpose.

Notwithstanding any other provisions of this act, to commingle and pledge as security for a series or issue of obligations, with the consent of all of the institutions which are participating in such series or issue:

To examine records and financial reports of participating institutions and to examine records and financial reports of any contractor organization or institution retained by the authority under the provisions of this act.

To make loans to a participating institution to refund outstanding obligations, mortgages, or advances issued, made, or given by such institution for authority loans; and whenever such refunding obligations are issued to refund obligations, the proceeds of which were used to make authority loans, the authority may reduce the amount of interest owed to it by the institution which had received authority loans from the proceeds of the refunded obligations. Such institution may use this reduced amount to reduce the amount of interest being paid on education loans which the institution had made pursuant to the authority loans from the proceeds of the refunded obligations.

To authorize its officers, agents, and employees to take any other action which is necessary in order to carry out the purposes of this act.

An authority may issue its negotiable revenue obligations for any corporate purpose. In anticipation of the sale of such obligations, the authority may issue negotiable bond anticipation notes and may renew them, but the maximum maturity of any such note, including renewals thereof, shall not exceed 5 years from the date of issue of the original note. Such notes shall be paid from revenues of the authority available therefor and not otherwise pledged or from the proceeds of sale of the revenue bonds of the authority in anticipation of which they were issued. The notes shall be issued in the same manner as the revenue bonds. Such notes and the resolution authorizing them may contain any provisions, conditions, or limitations which a bond resolution of the authority may contain.

Each issue of obligations shall be payable solely out of those revenues of the authority that pertain to the program relating to such issue, including principal and interest on authority loans and education loans; payments by institutions of higher education, banks, insurance companies, or others pursuant to letters of credit or purchase agreements; investment earnings from funds or accounts maintained pursuant to the bond resolution; insurance proceeds; loan funding deposits; proceeds of sales of education loans; proceeds of refunding obligations; and fees, charges, and other revenues of the authority from such program, subject only to any agreements with the holders of particular revenue bonds or notes pledging any particular reserves.

The obligations may be issued as serial obligations or as term obligations, or in both forms. The obligations shall be authorized by a bond resolution of the authority and shall bear such dates; mature at such times, not to exceed the year following the last year in which the final payments in an education loan series portfolio are due or 30 years, whichever is sooner, from their respective dates of issue; bear interest at such rates; be payable at such times; be in such denominations; be in such form, either coupon or fully registered; carry such registration and conversion privileges; be payable in lawful money of the United States of America at such places; and be subject to such terms of redemption as such bond resolution may provide. Obligations shall be executed by the manual or facsimile signatures of such officers of the authority as shall be designated by the authority. Obligations may be sold at public or private sale in such manner and for such price as the authority shall determine. Pending preparation of the definitive bonds, the authority may issue interim receipts or certificates which shall be exchanged for such definitive bonds.

Any bond resolution may contain provisions, which shall be a part of the contract with the holders of the obligations to be authorized, as to:

Neither the members of the authority nor any person executing the obligations shall be liable personally on the obligations or be subject to any personal liability or accountability by reason of the issuance thereof.

The authority shall have power to purchase its obligations out of any funds available therefor. The authority may hold, pledge, cancel, or resell such obligations subject to and in accordance with agreements with bondholders.

The authority shall have the power to refund any of its obligations. Such refunding obligations shall be issued in the same manner as other obligations of the authority.

Pay the institution’s share of the administrative costs and expenses of such program;

Pay the principal of, the premium, if any, on, and the interest on outstanding obligations of the authority which have been issued in respect of such program to the extent that other revenues of the authority pledged for the payment of the obligations are insufficient to pay the obligations as they become due and payable;

Create and maintain reserves which may, but need not, be required or provided for in the bond resolution relating to such obligations of the authority; and

Establish and maintain whatever education loan servicing, control, or audit procedures are deemed necessary to the prudent operations of the authority.

Protect and enforce any and all rights under the laws of this state or granted hereunder or by the bond resolution or trust agreement;

Enjoin unlawful activities; and

In the event of default with respect to the payment of any principal of, premiums, if any, on, and interest on any obligation or in the performance of any covenant or agreement on the part of the authority in the bond resolution, apply to the circuit court to appoint a receiver to administer and operate the education loan program or programs, the revenues of which are pledged to the payment of principal of, premium, if any, on, and interest on such obligations, with full power to pay, and to provide for payment of, principal of, premium, if any, on, and interest on such obligations and with such powers, subject to the direction of the court, as are permitted by law and are accorded receivers, excluding any power to pledge additional revenues of the authority to the payment of such principal, premium, and interest.

An authority may provide for the issuance of obligations for the purpose of refunding any of its obligations then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase, or maturity of such obligations.

The proceeds of any such obligations issued for the purpose of refunding outstanding obligations may, in the discretion of the authority, be applied to the purchase or retirement at maturity or redemption of such outstanding obligations either on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof and may, pending such application, be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the authority.

Any such escrowed proceeds, pending such use, may be invested and reinvested in direct obligations of the United States of America or in certificates of deposit or time deposits of financial institutions secured as to principal by such direct obligations, which direct obligations, certificates of deposit, or time deposits mature at such time as shall be appropriate to assure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding obligations to be so refunded. The interest, income, and profits, if any, earned or realized on any such investment may also be applied to the payment of the outstanding obligations to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and interest, income, and profits, if any, earned or realized on the investments thereof shall be returned to the authority for use in any lawful manner.

All such refunding bonds shall be subject to this act in the same manner and to the same extent as other revenue bonds issued pursuant to this act.

Direct obligations of the United States of America;

Obligations as to which the timely payment of principal and interest is fully guaranteed by the United States of America;

Obligations of the Federal Intermediate Credit Banks, Federal Banks for Cooperatives, Federal Land Banks, Federal Home Loan Banks, Federal National Mortgage Association, Government National Mortgage Association, and Student Loan Marketing Association;

Certificates of deposit or time deposits constituting direct obligations of any financial institution as defined by the financial institutions codes, as now or hereafter amended, except that investments may be made only in those certificates of deposit or time deposits in financial institutions which are insured by the appropriate federal regulatory agency as defined in s. 655.005; and

Withdrawable capital accounts or deposits of state or federally chartered savings and loan associations which are insured by an agency of the Federal Government. Any such securities may be purchased at the offering or market price thereof at the time of such purchase. All such securities so purchased shall mature or be redeemable on a date prior to the time when, in the judgment of the authority, the funds so invested will be required for expenditure. The express judgment of the authority as to the time when any funds will be required for expenditure or be redeemable is final and conclusive.

Summaries of all applications by institutions of higher education for education loan financing assistance presented to the authority during such fiscal year;

Summaries of all education loan programs which have received any form of financial assistance from the authority during such year;

The nature and amount of all education loan financing assistance;

A report concerning the financial condition of the various education loan series portfolios; and

Projected activities of the authority for the next fiscal year, including projections of the total amount of financial assistance anticipated and the amount of obligations that will be necessary to provide the projected level of assistance during the next fiscal year.

If any member, officer, or employee of an authority has an interest, either direct or indirect, in any contract to which the authority is, or is to be, a party or in any institution requesting an authority loan from the authority, such interest shall be disclosed to the authority in writing and shall be set forth in the minutes of the authority. The person having such interest shall not participate in any action by the authority with respect to such contract or such institution.

Nothing in this section shall be construed to limit the right of any member, officer, or employee of an authority to acquire an interest in bonds of the authority or to have an interest in any banking institution in which the bonds of the authority are, or are to be, deposited or which is, or is to be, acting as trustee or paying agent under any bond resolution, trust indenture, or similar instrument to which the authority is a party.

The State of Florida, acting through the State Board of Administration, is authorized to borrow funds to finance student loans and to lend such funds to eligible lenders described under the provisions of the Higher Education Act of 1965 (20 U.S.C. ss. 1071 et seq.), as amended or as may be amended, or other federal laws providing for the guarantee of loans to students and the partial payment of interest on such loans by the United States Government.

In order to obtain such funds, the State of Florida, acting through the State Board of Administration, is authorized to enter into loan agreements and interlocal agreements with any county, municipality, special district, or other local governmental body. Such agreements shall be for such periods and under such terms and conditions as may be mutually agreed upon by the parties thereto in order to carry out the purposes of s. 15, Art. VII of the State Constitution. The loans shall be repaid only from the proceeds received under loan agreements with eligible lenders or from the proceeds received from the repayment of the student loans. Such agreements shall provide that the loans to the state will not constitute a general or moral obligation or a pledge of the faith and credit or the taxing power of the state.

The State of Florida, acting through the State Board of Administration, is further authorized to enter into loan agreements or other contracts under which the state will loan the funds obtained from the local governments to eligible lenders as defined in s. 435(g)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. ss. 1071 et seq.), as amended or as may be amended, or other federal laws providing for the guarantee of loans to students and the partial payment of interest on such loans by the United States Government. Such agreements or contracts shall be for such periods and under such terms and conditions as may be mutually agreed upon by the parties thereto in order to carry out the purposes of s. 15, Art. VII of the State Constitution. Higher Education Loan Program of Florida, Inc., a Florida nonprofit corporation, is hereby designated an eligible lender hereunder, and any other lender, to the extent permitted under s. 435(g)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. ss. 1071 et seq.), as amended or as may be amended, or other federal laws providing for the guarantee of loans to students and the partial payment of interest on such loans by the United States Government, may be designated by the Governor, with the concurrence of the State Board of Administration, as an eligible lender hereunder.

The State of Florida, acting through the State Board of Administration, is further authorized to enter into such further contracts and to take such further actions as may be necessary or convenient in order to carry out the purposes of this section.

Notice shall be published in a newspaper of general circulation within the territorial jurisdiction of the governmental body following adoption by the local governmental body of a resolution authorizing a loan agreement or interlocal agreement under this section. An action or proceeding to contest the validity of any such loan agreement or interlocal agreement must be commenced within 30 days after publication of such notice.

The provisions of this section shall be liberally construed in order to effectively carry out its purposes. This section shall be deemed to provide an additional and alternative method for the doing of the things authorized hereby and shall be regarded as supplemental to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing.