CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. CS for SB 2100
Amendment No.
CHAMBER ACTION
Senate House
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11 Senator Clary moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 46, between lines 14 and 15,
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16 insert:
17 Section 39. Section 240.551, Florida Statutes, is
18 amended to read:
19 240.551 Florida Prepaid College Postsecondary
20 Education Expense Program.--
21 (1) LEGISLATIVE INTENT.--The Legislature recognizes
22 that educational opportunity at the postsecondary level is a
23 critical state interest. It further recognizes that
24 educational opportunity is best ensured through the provision
25 of postsecondary institutions that are geographically and
26 financially accessible. Accordingly, it is the intent of the
27 Legislature that a program be established through which many
28 of the costs associated with postsecondary attendance may be
29 paid in advance and fixed at a guaranteed level for the
30 duration of undergraduate enrollment. It is similarly the
31 intent of the Legislature to provide a program that fosters
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1 timely financial planning for postsecondary attendance and to
2 encourage employer participation in such planning through
3 program contributions on behalf of employees and the
4 dependents of employees.
5 (2) DEFINITIONS.--As used in this section:
6 (a) "Advance payment contract" means a contract
7 entered into by the board and a purchaser pursuant to this
8 section.
9 (b) "Board" means the Florida Prepaid College
10 Postsecondary Education Expense Board.
11 (c) "Fund" means the Florida Prepaid College
12 Postsecondary Education Expense Trust Fund.
13 (d)(g) "Program" means the Florida Prepaid College
14 Postsecondary Education Expense Program.
15 (e)(d) "Purchaser" means a person who makes or is
16 obligated to make advance registration or dormitory residence
17 payments in accordance with an advance payment contract.
18 (f)(e) "Qualified beneficiary" means:
19 1. A resident of this state at the time a purchaser
20 enters into an advance payment contract on behalf of the
21 resident;
22 2. A nonresident who is the child of a noncustodial
23 parent who is a resident of this state at the time that such
24 parent enters into an advance payment contract on behalf of
25 the child; or
26 3. For purposes of advance payment contracts entered
27 into pursuant to subsection (22) paragraph (5)(j), a graduate
28 of an accredited high school in this state who is a resident
29 of this state at the time he or she is designated to receive
30 the benefits of the advance payment contract.
31 (g)(h) "Registration fee" means matriculation fee,
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1 financial aid fee, building fee, and Capital Improvement Trust
2 Fund fee.
3 (h)(f) "State postsecondary institution" means any
4 community college identified in s. 240.3031 or university
5 identified in s. 240.2011.
6 (3) FLORIDA PREPAID COLLEGE PROGRAM; CREATION.--There
7 is created a Florida Prepaid College Postsecondary Education
8 Expense Program to provide a medium through which the cost of
9 registration and dormitory residence may be paid in advance of
10 enrollment in a state postsecondary institution at a rate
11 lower than the projected corresponding cost at the time of
12 actual enrollment. Such payments shall be combined and
13 invested in a manner that yields, at a minimum, sufficient
14 interest to generate the difference between the prepaid amount
15 and the cost of registration and dormitory residence at the
16 time of actual enrollment. Students who enroll in a state
17 postsecondary institution pursuant to this section shall be
18 charged no fees in excess of the terms delineated in the
19 advance payment contract.
20 (4) FLORIDA PREPAID COLLEGE TRUST FUND.--There is
21 created within the State Board of Administration the Florida
22 Prepaid College Postsecondary Education Expense Trust Fund.
23 The fund shall consist of state appropriations, moneys
24 acquired from other governmental or private sources, and
25 moneys remitted in accordance with advance payment contracts.
26 All funds deposited into the trust fund may be invested
27 pursuant to s. 215.47; however, such investment shall not be
28 mandatory. Dividends, interest, and gains accruing to the
29 trust fund shall increase the total funds available for the
30 program. Notwithstanding the provisions of chapter 717, funds
31 associated with terminated contracts terminated pursuant to
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1 subsection (12) paragraph (6)(d) and canceled contracts for
2 which no refunds have been claimed shall increase the total
3 funds available for the program. However, the board shall
4 establish procedures for notifying purchasers who subsequently
5 cancel their contracts of any unclaimed refund and shall
6 establish a time period after which no refund may be claimed
7 by a purchaser who canceled a contract. Any balance contained
8 within the fund at the end of a fiscal year shall remain
9 therein and shall be available for carrying out the purposes
10 of the program. In the event that dividends, interest, and
11 gains exceed exceeds the amount necessary for program
12 administration and disbursements, the board may designate an
13 additional percentage of the fund to serve as a contingency
14 fund. Moneys contained within the fund shall be exempt from
15 the investment requirements of s. 18.10. Any funds of a
16 direct-support organization created pursuant to subsection
17 (22) paragraph (5)(j) shall be exempt from the provisions of
18 this subsection paragraph.
19 (5) PROGRAM ADMINISTRATION.--
20 (a) The Florida Prepaid College Postsecondary
21 Education Expense Program shall be administered by the Florida
22 Prepaid College Postsecondary Education Expense Board as an
23 agency of the state. The Florida Prepaid College
24 Postsecondary Education Expense Board is hereby created as a
25 body corporate with all the powers of a body corporate for the
26 purposes delineated in this section. For the purposes of s.
27 6, Art. IV of the State Constitution, the board shall be
28 assigned to and administratively housed within the State Board
29 of Administration, but it shall independently exercise the
30 powers and duties specified in this section.
31 (b) The board shall consist of seven members to be
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1 composed of the Insurance Commissioner and Treasurer, the
2 Comptroller, the Chancellor of the Board of Regents, the
3 Executive Director of the State Board of Community Colleges,
4 and three members appointed by the Governor and subject to
5 confirmation by the Senate. Each member appointed by the
6 Governor shall possess knowledge, skill, and experience in the
7 areas of accounting, actuary, risk management, or investment
8 management. Each member of the board not appointed by the
9 Governor may name a designee to serve the board on behalf of
10 the member; however, any designee so named shall meet the
11 qualifications required of gubernatorial appointees to the
12 board. Members appointed by the Governor shall serve terms of
13 3 years except that, in making the initial appointments, the
14 Governor shall appoint one member to serve for 1 year, one
15 member to serve for 2 years, and one member to serve for 3
16 years. Any person appointed to fill a vacancy on the board
17 shall be appointed in a like manner and shall serve for only
18 the unexpired term. Any member shall be eligible for
19 reappointment and shall serve until a successor qualifies.
20 Members of the board shall serve without compensation but
21 shall be reimbursed for per diem and travel in accordance with
22 s. 112.061. Each member of the board shall file a full and
23 public disclosure of his or her financial interests pursuant
24 to s. 8, Art. II of the State Constitution and corresponding
25 statute.
26 (c)(a) The Governor shall appoint a member of the
27 board to serve as the initial chair of the board. Thereafter,
28 the board shall elect a chair annually. The board shall
29 annually elect a board member to serve as chair and a board
30 member to serve as vice chair and shall designate a
31 secretary-treasurer who need not be a member of the board.
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1 The secretary-treasurer shall keep a record of the proceedings
2 of the board and shall be the custodian of all printed
3 material filed with or by the board and of its official seal.
4 Notwithstanding the existence of vacancies on the board, a
5 majority of the members shall constitute a quorum. The board
6 shall take no official action in the absence of a quorum. The
7 board shall meet, at a minimum, on a quarterly basis at the
8 call of the chair.
9 (6) FLORIDA PREPAID COLLEGE BOARD; DUTIES.--The board
10 shall:
11 (a)(b) The board shall Appoint an executive director
12 to serve as the chief administrative and operational officer
13 of the board and to perform other duties assigned to him or
14 her by the board.
15 (b) Administer the fund in a manner that is
16 sufficiently actuarially sound to defray the obligations of
17 the program. The board shall annually evaluate or cause to be
18 evaluated the actuarial soundness of the fund. If the board
19 perceives a need for additional assets in order to preserve
20 actuarial soundness, the board may adjust the terms of
21 subsequent advance payment contracts to ensure such soundness.
22 (c) Establish a comprehensive investment plan for the
23 purposes of this section with the approval of the State Board
24 of Administration. The comprehensive investment plan shall
25 specify the investment policies to be utilized by the board in
26 its administration of the fund. The board may place assets of
27 the fund in savings accounts or use the same to purchase fixed
28 or variable life insurance or annuity contracts, securities,
29 evidence of indebtedness, or other investment products
30 pursuant to the comprehensive investment plan and in such
31 proportions as may be designated or approved under that plan.
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1 Such insurance, annuity, savings, or investment products shall
2 be underwritten and offered in compliance with the applicable
3 federal and state laws, regulations, and rules by persons who
4 are duly authorized by applicable federal and state
5 authorities. Within the comprehensive investment plan, the
6 board may authorize investment vehicles, or products incident
7 thereto, as may be available or offered by qualified companies
8 or persons. A contract purchaser may not direct the investment
9 of his or her contribution to the trust fund and a contract
10 beneficiary may not direct the contribution made on his or her
11 behalf to the trust fund. Board members and employees of the
12 board are not prohibited from purchasing advance payment
13 contracts by virtue of their fiduciary responsibilities as
14 members of the board or official duties as employees of the
15 board.
16 (d) Solicit proposals and contract, pursuant to s.
17 287.057, for the marketing of the Florida Prepaid College
18 Program. The entity designated pursuant to this paragraph
19 shall serve as a centralized marketing agent for the program
20 and shall be solely responsible for the marketing of the
21 program. Any materials produced for the purpose of marketing
22 the program shall be submitted to the board for review. No
23 such materials shall be made available to the public before
24 the materials are approved by the board. Any educational
25 institution may distribute marketing materials produced for
26 the program; however, all such materials shall have been
27 approved by the board prior to distribution. Neither the state
28 nor the board shall be liable for misrepresentation of the
29 program by a marketing agent.
30 (e) Solicit proposals and contract, pursuant to s.
31 287.057, for a trustee services firm to select and supervise
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1 investment programs on behalf of the board. The goals of the
2 board in selecting a trustee services firm shall be to obtain
3 the highest standards of professional trustee services, to
4 allow all qualified firms interested in providing such
5 services equal consideration, and to provide such services to
6 the state at no cost and to the purchasers at the lowest cost
7 possible. The trustee services firm shall agree to meet the
8 obligations of the board to qualified beneficiaries if moneys
9 in the fund fail to offset the obligations of the board as a
10 result of imprudent selection or supervision of investment
11 programs by such firm. Evaluations of proposals submitted
12 pursuant to this paragraph shall include, but not be limited
13 to, the following criteria:
14 1. Adequacy of trustee services for supervision and
15 management of the program, including current operations and
16 staff organization and commitment of management to the
17 proposal.
18 2. Capability to execute program responsibilities
19 within time and regulatory constraints.
20 3. Past experience in trustee services and current
21 ability to maintain regular and continuous interactions with
22 the board, records administrator, and product provider.
23 4. The minimum purchaser participation assumed within
24 the proposal and any additional requirements of purchasers.
25 5. Adequacy of technical assistance and services
26 proposed for staff.
27 6. Adequacy of a management system for evaluating and
28 improving overall trustee services to the program.
29 7. Adequacy of facilities, equipment, and electronic
30 data processing services.
31 8. Detailed projections of administrative costs,
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1 including the amount and type of insurance coverage, and
2 detailed projections of total costs.
3 (f) Solicit proposals and contract, pursuant to s.
4 287.057, for product providers to develop investment
5 portfolios on behalf of the board to achieve the purposes of
6 this section. Product providers shall be limited to authorized
7 insurers as defined in s. 624.09, banks as defined in s.
8 658.12, associations as defined in s. 665.012, authorized
9 Securities and Exchange Commission investment advisers, and
10 investment companies as defined in the Investment Company Act
11 of 1940. All product providers shall have their principal
12 place of business and corporate charter located and registered
13 in the United States. In addition, each product provider shall
14 agree to meet the obligations of the board to qualified
15 beneficiaries if moneys in the fund fail to offset the
16 obligations of the board as a result of imprudent investing by
17 such provider. Each authorized insurer shall evidence superior
18 performance overall on an acceptable level of surety in
19 meeting its obligations to its policyholders and other
20 contractual obligations. Only qualified public depositories
21 approved by the Insurance Commissioner and Treasurer shall be
22 eligible for board consideration. Each investment company
23 shall provide investment plans as specified within the request
24 for proposals. The goals of the board in selecting a product
25 provider company shall be to provide all purchasers with the
26 most secure, well-diversified, and beneficially administered
27 postsecondary education expense plan possible, to allow all
28 qualified firms interested in providing such services equal
29 consideration, and to provide such services to the state at no
30 cost and to the purchasers at the lowest cost possible.
31 Evaluations of proposals submitted pursuant to this paragraph
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1 shall include, but not be limited to, the following criteria:
2 1. Fees and other costs charged to purchasers that
3 affect account values or operational costs related to the
4 program.
5 2. Past and current investment performance, including
6 investment and interest rate history, guaranteed minimum rates
7 of interest, consistency of investment performance, and any
8 terms and conditions under which moneys are held.
9 3. Past experience and ability to provide timely and
10 accurate service in the areas of records administration,
11 benefit payments, investment management, and complaint
12 resolution.
13 4. Financial history and current financial strength
14 and capital adequacy to provide products, including operating
15 procedures and other methods of protecting program assets.
16 (7)(c) FLORIDA PREPAID COLLEGE BOARD; POWERS.--The
17 board shall have the powers necessary or proper to carry out
18 the provisions of this section, including, but not limited to,
19 the power to:
20 (a)1. Adopt an official seal and rules.
21 (b)2. Sue and be sued.
22 (c)3. Make and execute contracts and other necessary
23 instruments.
24 (d)4. Establish agreements or other transactions with
25 federal, state, and local agencies, including state
26 universities and community colleges.
27 (e)5. Invest funds not required for immediate
28 disbursement.
29 (f)6. Appear in its own behalf before boards,
30 commissions, or other governmental agencies.
31 (g)7. Hold, buy, and sell any instruments,
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1 obligations, securities, and property determined appropriate
2 by the board.
3 (h)8. Require a reasonable length of state residence
4 for qualified beneficiaries.
5 (i)9. Restrict the number of participants in the
6 community college plan, university plan, and dormitory
7 residence plan, respectively. However, any person denied
8 participation solely on the basis of such restriction shall be
9 granted priority for participation during the succeeding year.
10 (j)10. Segregate contributions and payments to the
11 fund into various accounts and funds.
12 (k)11. Contract for necessary goods and services,
13 employ necessary personnel, and engage the services of private
14 consultants, actuaries, managers, legal counsel, and auditors
15 for administrative or technical assistance.
16 (l)12. Solicit and accept gifts, grants, loans, and
17 other aids from any source or participate in any other way in
18 any government program to carry out the purposes of this
19 section.
20 (m)13. Require and collect administrative fees and
21 charges in connection with any transaction and impose
22 reasonable penalties, including default, for delinquent
23 payments or for entering into an advance payment contract on a
24 fraudulent basis.
25 (n)14. Procure insurance against any loss in
26 connection with the property, assets, and activities of the
27 fund or the board.
28 (o)15. Impose reasonable time limits on use of the
29 tuition benefits provided by the program. However, any such
30 limitation shall be specified within the advance payment
31 contract.
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1 (p)16. Delineate the terms and conditions under which
2 payments may be withdrawn from the fund and impose reasonable
3 fees and charges for such withdrawal. Such terms and
4 conditions shall be specified within the advance payment
5 contract.
6 (q)17. Provide for the receipt of contributions in
7 lump sums or installment payments.
8 18. Establish other policies, procedures, and criteria
9 to implement and administer the provisions of this section.
10 (r)19. Require that purchasers of advance payment
11 contracts verify, under oath, any requests for contract
12 conversions, substitutions, transfers, cancellations, refund
13 requests, or contract changes of any nature. Verification
14 shall be accomplished as authorized and provided for in s.
15 92.525(1)(a).
16 (d) The board shall administer the fund in a manner
17 that is sufficiently actuarially sound to defray the
18 obligations of the program. The board shall annually evaluate
19 or cause to be evaluated the actuarial soundness of the fund.
20 If the board perceives a need for additional assets in order
21 to preserve actuarial soundness, the board may adjust the
22 terms of subsequent advance payment contracts to ensure such
23 soundness.
24 (e) The board, acting with the approval of the State
25 Board of Administration, shall establish a comprehensive
26 investment plan for the purposes of this section. The
27 comprehensive investment plan shall specify the investment
28 policies to be utilized by the board in its administration of
29 the fund. The board may place assets of the fund in savings
30 accounts or use the same to purchase fixed or variable life
31 insurance or annuity contracts, securities, evidence of
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1 indebtedness, or other investment products pursuant to the
2 comprehensive investment plan and in such proportions as may
3 be designated or approved under that plan. Such insurance,
4 annuity, savings, or investment products shall be underwritten
5 and offered in compliance with the applicable federal and
6 state laws, regulations, and rules by persons who are duly
7 authorized by applicable federal and state authorities.
8 Within the comprehensive investment plan, the board may
9 authorize investment vehicles, or products incident thereto,
10 as may be available or offered by qualified companies or
11 persons. A contract purchaser may not direct the investment of
12 his or her contribution to the trust fund, and a contract
13 beneficiary may not direct the contribution made on his or her
14 behalf to the trust fund. Board members and employees of the
15 board are not prohibited from purchasing advance payment
16 contracts by virtue of their fiduciary responsibilities as
17 members of the board or official duties as employees of the
18 board.
19 (s)(f) The board may Delegate responsibility for
20 administration of the comprehensive investment plan required
21 in paragraph (6)(c)(e) to a person the board determines to be
22 qualified. Such person shall be compensated by the board.
23 Directly or through such person, the board may contract with a
24 private corporation or institution to provide such services as
25 may be a part of the comprehensive investment plan or as may
26 be deemed necessary or proper by the board or such person,
27 including, but not limited to, providing consolidated billing,
28 individual and collective recordkeeping and accountings, and
29 asset purchase, control, and safekeeping.
30 (t) Endorse insurance coverage written exclusively for
31 the purpose of protecting advance payment contracts, and the
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1 purchasers and beneficiaries thereof, which may be issued in
2 the form of a group life policy and which is exempt from the
3 provisions of part V of chapter 627.
4 (u) Solicit proposals and contract, pursuant to s.
5 287.057, for the services of a records administrator. The
6 goals of the board in selecting a records administrator shall
7 be to provide all purchasers with the most secure,
8 well-diversified, and beneficially administered postsecondary
9 education expense plan possible, to allow all qualified firms
10 interested in providing such services equal consideration, and
11 to provide such services to the state at no cost and to the
12 purchasers at the lowest cost possible. Evaluations of
13 proposals submitted pursuant to this paragraph shall include,
14 but not be limited to, the following criteria:
15 1. Fees and other costs charged to purchasers that
16 affect account values or operational costs related to the
17 program.
18 2. Past experience in records administration and
19 current ability to provide timely and accurate service in the
20 areas of records administration, audit and reconciliation,
21 plan communication, participant service, and complaint
22 resolution.
23 3. Sufficient staff and computer capability for the
24 scope and level of service expected by the board.
25 4. Financial history and current financial strength
26 and capital adequacy to provide administrative services
27 required by the board.
28 (v) Establish other policies, procedures, and criteria
29 to implement and administer the provisions of this section.
30 (g) The board shall annually prepare or cause to be
31 prepared a report setting forth in appropriate detail an
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1 accounting of the fund and a description of the financial
2 condition of the program at the close of each fiscal year.
3 Such report shall be submitted to the President of the Senate,
4 the Speaker of the House of Representatives, and members of
5 the State Board of Education on or before March 31 each year.
6 In addition, the board shall make the report available to
7 purchasers of advance payment contracts. The board shall
8 provide to the Board of Regents and the State Board of
9 Community Colleges by March 31 each year complete advance
10 payment contract sales information including projected
11 postsecondary enrollments of qualified beneficiaries. The
12 accounts of the fund shall be subject to annual audits by the
13 Auditor General or his or her designee.
14 (8)(h) QUALIFIED STATE TUITION PROGRAM
15 STATUS.--Notwithstanding any other provision of this section,
16 the board may adopt rules necessary to enable the program to
17 retain its status as a "qualified state tuition prepaid
18 program" in order to maintain its tax exempt status or other
19 similar status of the program, purchasers, and qualified
20 beneficiaries under the Internal Revenue Code of 1986, as
21 defined in s. 220.03(1). The board shall inform purchasers of
22 changes to the tax or securities status of contracts purchased
23 through the program.
24 (i) The board shall solicit proposals for the
25 marketing of the Florida Prepaid Postsecondary Education
26 Expense Program pursuant to s. 287.057. The entity designated
27 pursuant to this paragraph shall serve as a centralized
28 marketing agent for the program and shall be solely
29 responsible for the marketing of the program. Any materials
30 produced for the purpose of marketing the program shall be
31 submitted to the board for review. No such materials shall be
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1 made available to the public before the materials are approved
2 by the board. Any educational institution may distribute
3 marketing materials produced for the program; however, all
4 such materials shall have been approved by the board prior to
5 distribution. Neither the state nor the board shall be liable
6 for misrepresentation of the program by a marketing agent.
7 (j) The board may establish a direct-support
8 organization which is:
9 1. A Florida corporation, not for profit, incorporated
10 under the provisions of chapter 617 and approved by the
11 Secretary of State.
12 2. Organized and operated exclusively to receive,
13 hold, invest, and administer property and to make expenditures
14 to or for the benefit of the program.
15 3. An organization which the board, after review, has
16 certified to be operating in a manner consistent with the
17 goals of the program and in the best interests of the state.
18 Unless so certified, the organization may not use the name of
19 the program.
20 4. Subject to an annual postaudit by an independent
21 certified public accountant in accordance with rules
22 promulgated by the board. The annual audit shall be submitted
23 to the State Board of Administration and the Auditor General
24 for review. The State Board of Administration and Auditor
25 General shall have the authority to require and receive from
26 the organization or its independent auditor any detail or
27 supplemental data relative to the operation of the
28 organization. The identity of donors who desire to remain
29 anonymous shall be confidential and exempt from the provisions
30 of s. 119.07(1) and s. 24(a), Art. I of the State
31 Constitution, and such anonymity shall be maintained in the
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1 auditor's report. Information received by the organization
2 that is otherwise confidential or exempt by law shall retain
3 such status. Any sensitive, personal information regarding
4 contract beneficiaries, including their identities, is exempt
5 from the provisions of s. 119.07(1) and s. 24(a), Art. I of
6 the State Constitution.
7
8 The chair of the board and the executive director shall be
9 directors of the direct-support organization and shall jointly
10 name three other individuals to serve as directors of the
11 organization.
12 (k) The board may endorse insurance coverage written
13 exclusively for the purpose of protecting advance payment
14 contracts, and the purchasers or beneficiaries thereof, which
15 may be issued in the form of a group life policy and which is
16 exempt from the provisions of part V of chapter 627.
17 (9) PREPAID COLLEGE PLANS.--At a minimum, the board
18 shall make advance payment contracts available for two
19 independent plans to be known as the community college plan
20 and the university plan. The board may also make advance
21 payment contracts available for a dormitory residence plan.
22 (a)1. Through the community college plan, the advance
23 payment contract shall provide prepaid registration fees for a
24 specified number of undergraduate semester credit hours not to
25 exceed the average number of hours required for the conference
26 of an associate degree. The cost of participation in the
27 community college plan shall be based primarily on the average
28 current and projected registration fees within the State
29 Community College System and the number of years expected to
30 elapse between the purchase of the plan on behalf of a
31 qualified beneficiary and the exercise of the benefits
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1 provided in the plan by such beneficiary. Qualified
2 beneficiaries shall bear the cost of any laboratory fees
3 associated with enrollment in specific courses. Each qualified
4 beneficiary shall be classified as a resident for tuition
5 purposes, pursuant to s. 240.1201, regardless of his or her
6 actual legal residence.
7 2. Effective July 1, 1998, the board may provide
8 advance payment contracts for additional fees delineated in s.
9 240.35, not to exceed the average number of hours required for
10 the conference of an associate degree, in conjunction with
11 advance payment contracts for registration fees. The cost of
12 purchasing such fees shall be based primarily on the average
13 current and projected fees within the State Community College
14 System and the number of years expected to elapse between the
15 purchase of the plan on behalf of the beneficiary and the
16 exercise of benefits provided in the plan by such beneficiary.
17 Community college plan contracts purchased prior to July 1,
18 1998, shall be limited to the payment of registration fees as
19 defined in subsection (2).
20 (b)1. Through the university plan, the advance payment
21 contract shall provide prepaid registration fees for a
22 specified number of undergraduate semester credit hours not to
23 exceed the average number of hours required for the conference
24 of a baccalaureate degree. The cost of participation in the
25 university plan shall be based primarily on the current and
26 projected registration fees within the State University System
27 and the number of years expected to elapse between the
28 purchase of the plan on behalf of a qualified beneficiary and
29 the exercise of the benefits provided in the plan by such
30 beneficiary. Qualified beneficiaries shall bear the cost of
31 any laboratory fees associated with enrollment in specific
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Amendment No.
1 courses. Each qualified beneficiary shall be classified as a
2 resident for tuition purposes pursuant to s. 240.1201,
3 regardless of his or her actual legal residence.
4 2. Effective July 1, 1998, the board may provide
5 advance payment contracts for additional fees delineated in s.
6 240.235(1), for a specified number of undergraduate semester
7 credit hours not to exceed the average number of hours
8 required for the conference of a baccalaureate degree, in
9 conjunction with advance payment contracts for registration
10 fees. Such contracts shall provide prepaid coverage for the
11 sum of such fees, to a maximum of 45 percent of the cost of
12 registration fees. The costs of purchasing such fees shall be
13 based primarily on the average current and projected cost of
14 these fees within the State University System and the number
15 of years expected to elapse between the purchase of the plan
16 on behalf of the qualified beneficiary and the exercise of the
17 benefits provided in the plan by such beneficiary. University
18 plan contracts purchased prior to July 1, 1998, shall be
19 limited to the payment of registration fees as defined in
20 subsection (2).
21 (c) Through the dormitory residence plan, the advance
22 payment contract may provide prepaid housing fees for a
23 maximum of 10 semesters of full-time undergraduate enrollment
24 in a state university. Dormitory residence plans shall be
25 purchased in increments of 2 semesters. The cost of
26 participation in the dormitory residence plan shall be based
27 primarily on the average current and projected housing fees
28 within the State University System and the number of years
29 expected to elapse between the purchase of the plan on behalf
30 of a qualified beneficiary and the exercise of the benefits
31 provided in the plan by such beneficiary. Qualified
19
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Bill No. CS for SB 2100
Amendment No.
1 beneficiaries shall have the highest priority in the
2 assignment of housing within university residence halls.
3 Qualified beneficiaries shall bear the cost of any additional
4 elective charges such as laundry service or long-distance
5 telephone service. Each state university may specify the
6 residence halls or other university-held residences eligible
7 for inclusion in the plan. In addition, any state university
8 may request immediate termination of a dormitory residence
9 contract based on a violation or multiple violations of rules
10 of the residence hall or other university-held residences. In
11 the event that sufficient housing is not available for all
12 qualified beneficiaries, the board shall refund the purchaser
13 or qualified beneficiary an amount equal to the fees charged
14 for dormitory residence during that semester. If a qualified
15 beneficiary fails to be admitted to a state university or
16 chooses to attend a community college that operates one or
17 more dormitories or residency opportunities, or has one or
18 more dormitories or residency opportunities operated by the
19 community college direct-support organization, the qualified
20 beneficiary may transfer or cause to have transferred to the
21 community college, or community college direct-support
22 organization, the fees associated with dormitory residence.
23 Dormitory fees transferred to the community college or
24 community college direct-support organization may not exceed
25 the maximum fees charged for state university dormitory
26 residence for the purposes of this section, or the fees
27 charged for community college or community college
28 direct-support organization dormitories or residency
29 opportunities, whichever is less.
30 (10) TRANSFER OF BENEFITS TO PRIVATE AND OUT-OF-STATE
31 COLLEGES AND UNIVERSITIES.--
20
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Amendment No.
1 (a) A qualified beneficiary may apply a community
2 college plan, university plan, or dormitory residence plan
3 toward any eligible independent college or university. An
4 independent college or university which is located and
5 chartered in Florida, is not for profit, is accredited by the
6 Commission on Colleges of the Southern Association of Colleges
7 and Schools or the Accrediting Commission of the Association
8 of Independent Colleges and Schools, and which confers degrees
9 as defined in s. 246.021, shall be eligible for such
10 application. The board shall transfer, or cause to have
11 transferred, to the eligible independent college or university
12 designated by the qualified beneficiary an amount not to
13 exceed the redemption value of the advance payment contract
14 within a state postsecondary institution. In the event that
15 the cost of registration or housing fees at the independent
16 college or university is less than the corresponding fees at a
17 state postsecondary institution, the amount transferred shall
18 not exceed the actual cost of registration or housing fees. No
19 transfer authorized pursuant to this paragraph shall exceed
20 the number of semester credit hours or semesters of dormitory
21 residence contracted on behalf of a qualified beneficiary.
22 (b) A qualified beneficiary may apply the benefits of
23 an advance payment contract toward an eligible out-of-state
24 college or university. An out-of-state college or university
25 which is not for profit and is accredited by a regional
26 accrediting association, and which confers baccalaureate
27 degrees, shall be eligible for such application. The board
28 shall transfer, or cause to have transferred, an amount not to
29 exceed the redemption value of the advance payment contract or
30 the original purchase price plus 5 percent compounded
31 interest, whichever is less, after assessment of a reasonable
21
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Bill No. CS for SB 2100
Amendment No.
1 transfer fee. In the event that the cost of registration or
2 housing fees charged the qualified beneficiary at the eligible
3 out-of-state college or university is less than this
4 calculated amount, the amount transferred shall not exceed the
5 actual cost of registration or housing fees. Any remaining
6 amount shall be transferred in subsequent semesters until the
7 transfer value is depleted. No transfer authorized pursuant to
8 this paragraph shall exceed the number of semester credit
9 hours or semesters of dormitory residence contracted on behalf
10 of a qualified beneficiary.
11 (11)(6)(a) ADVANCE PAYMENT CONTRACTS; CONTENTS.--The
12 board shall construct advance payment contracts for
13 registration and may construct advance payment contracts for
14 dormitory residence as provided in accordance with the
15 provisions of this section. Advance payment contracts
16 constructed for the purposes of this section shall be exempt
17 from the provisions of chapter 517 and the Florida Insurance
18 Code. The board may request assistance from the Department of
19 Legal Affairs in the development of the advance payment
20 contracts. The contents of both Such contracts shall include,
21 but not be limited to, the following:
22 (a)1. The amount of the payment or payments and the
23 number of payments required from a purchaser on behalf of a
24 qualified beneficiary.
25 (b)2. The terms and conditions under which purchasers
26 shall remit payments, including, but not limited to, the date
27 or dates upon which each payment shall be due.
28 (c)3. Provisions for late payment charges and for
29 default.
30 (d)4. Provisions for penalty fees for withdrawals from
31 the fund.
22
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Amendment No.
1 (e)5. Except for an advance payment contract entered
2 into pursuant to subsection (22) paragraph (5)(j), the name
3 and date of birth of the qualified beneficiary on whose behalf
4 the contract is drawn and the terms and conditions under which
5 another person may be substituted as the qualified
6 beneficiary.
7 (f)6. The name of any person who may terminate the
8 contract. The terms of the contract shall specify whether the
9 contract may be terminated by the purchaser, the qualified
10 beneficiary, a specific designated person, or any combination
11 of these persons.
12 (g)7. The terms and conditions under which a contract
13 may be terminated, modified, or converted, the name of the
14 person entitled to any refund due as a result of termination
15 of the contract pursuant to such terms and conditions, and the
16 amount of refund, if any, due to the person so named.
17 8. The time limitations, if any, within which the
18 qualified beneficiary must claim his or her benefits through
19 the program.
20 9. Other terms and conditions deemed by the board to
21 be necessary or proper.
22 (b) In addition to the provisions of paragraph (a), an
23 advance payment contract for registration shall include, but
24 not be limited to, the following:
25 (h)1. The number of semester credit hours or semesters
26 of dormitory residence contracted by the purchaser.
27 (i)2. The state postsecondary system toward which the
28 contracted credit hours or semesters of dormitory residence
29 will be applied.
30 (j)3. The assumption of a contractual obligation by
31 the board to the qualified beneficiary to provide for a
23
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Bill No. CS for SB 2100
Amendment No.
1 specified number of semester credit hours of undergraduate
2 instruction at a state postsecondary institution, not to
3 exceed the average number of credit hours required for the
4 conference of the degree that corresponds to the plan
5 purchased on behalf of the qualified beneficiary or to provide
6 for a specified number of semesters of dormitory residence,
7 not to exceed the number of semesters of full-time enrollment
8 required for the conference of a baccalaureate degree.
9 (k) Other terms and conditions deemed by the board to
10 be necessary or proper.
11 (c) In addition to the provisions of paragraph (a), an
12 advance payment contract for dormitory residence shall
13 include, but not be limited to, the following:
14 1. The number of semesters of dormitory residence
15 contracted by the purchaser.
16 2. The assumption of a contractual obligation by the
17 board to the qualified beneficiary to provide for a specified
18 number of semesters of dormitory residence at a state
19 university, not to exceed the maximum number of semesters of
20 full-time enrollment required for the conference of a
21 baccalaureate degree.
22 (12)(d) DURATION OF BENEFITS; ADVANCE PAYMENT
23 CONTRACT.--An advance payment contract may provide that
24 contracts which have not been terminated or the benefits
25 exercised within a specified period of time shall be
26 considered terminated. Time expended by a qualified
27 beneficiary as an active duty member of any of the armed
28 services of the United States shall be added to the period of
29 time specified pursuant to this subsection paragraph. No
30 purchaser or qualified beneficiary whose advance payment
31 contract is terminated pursuant to this subsection paragraph
24
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SENATE AMENDMENT
Bill No. CS for SB 2100
Amendment No.
1 shall be entitled to a refund. The board shall retain any
2 moneys paid by the purchaser for an advance payment contract
3 that has been terminated in accordance with this subsection
4 paragraph. Such moneys retained by the board are exempt from
5 chapter 717, and such retained moneys must be used by the
6 board to further the purposes of this section.
7 (13) REFUNDS.--
8 (a)(e)1. Except as provided in paragraphs (b) and (c),
9 no refund provided pursuant to subparagraph (a)7. shall exceed
10 the amount paid into the fund by the purchaser. In the event
11 that an advance payment contract is converted from a
12 university to a community college registration plan, the
13 refund amount shall be reduced by the amount transferred to a
14 community college on behalf of the qualified beneficiary.
15 However, refunds may exceed the amount paid into the fund in
16 the following circumstances:
17 (b)a. If the beneficiary is awarded a scholarship, the
18 terms of which cover the benefits included in the advance
19 payment contracts, moneys paid for the purchase of the advance
20 payment contracts shall be returned to the purchaser in
21 semester installments coinciding with the matriculation by the
22 beneficiary in amounts of either the original purchase price
23 plus 5 percent compounded interest, or the current rates at
24 state postsecondary institutions, whichever is less.
25 (c)b. In the event of the death or total disability of
26 the beneficiary, moneys paid for the purchase of advance
27 payment contracts shall be returned to the purchaser together
28 with 5 percent compounded interest, or the current rates at
29 state postsecondary institutions, whichever is less.
30 (d)c. If an advance payment contract is converted from
31 one registration plan to a plan of lesser value a university
25
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Bill No. CS for SB 2100
Amendment No.
1 plan to a community college plan or a community college plus
2 university plan, or is converted from a community college plus
3 university plan to a community college plan, the amount
4 refunded shall not exceed the difference between the amount
5 paid for the original contract and the amount that would have
6 been paid for the contract to which the plan is converted had
7 the converted plan been purchased under the same payment plan
8 at the time the original advance payment contract was
9 executed.
10 (e)2. No refund shall be authorized through an advance
11 payment contract for any school year partially attended but
12 not completed. For purposes of this section, a school year
13 partially attended but not completed shall mean any one
14 semester whereby the student is still enrolled at the
15 conclusion of the official drop-add period, but withdraws
16 before the end of such semester. If a beneficiary does not
17 complete a community college plan or university plan for
18 reasons other than specified in paragraph (c) subparagraph 1.,
19 the purchaser shall receive a refund of the amount paid into
20 the fund for the remaining unattended years of the advance
21 payment contract pursuant to rules promulgated by the board.
22 (14)(f) CONFIDENTIALITY OF ACCOUNT
23 INFORMATION.--Information that identifies the purchasers or
24 beneficiaries of any plan promulgated under this section and
25 their advance payment account activities is exempt from the
26 provisions of s. 119.07(1). However, the board may authorize
27 the program's records administrator to release such
28 information to a community college, college, or university in
29 which a beneficiary may enroll or is enrolled. Community
30 colleges, colleges, and universities shall maintain such
31 information as exempt from the provisions of s. 119.07(1).
26
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Bill No. CS for SB 2100
Amendment No.
1 (7) At a minimum, the board shall make advance payment
2 contracts available for two independent plans to be known as
3 the community college plan and the university plan. The board
4 may also make advance payment contracts available for a
5 dormitory residence plan.
6 (a) Through the community college plan, the advance
7 payment contract shall provide prepaid registration fees for a
8 specified number of undergraduate semester credit hours not to
9 exceed the average number of hours required for the conference
10 of an associate degree. The cost of participation in the
11 community college plan shall be based primarily on the average
12 current and projected registration fees within the State
13 Community College System and the number of years expected to
14 elapse between the purchase of the plan on behalf of a
15 qualified beneficiary and the exercise of the benefits
16 provided in the plan by such beneficiary. Qualified
17 beneficiaries shall bear the cost of any laboratory fees
18 associated with enrollment in specific courses. Each
19 qualified beneficiary shall be classified as a resident for
20 tuition purposes pursuant to s. 240.1201 regardless of his or
21 her actual legal residence.
22 (b) Through the university plan, the advance payment
23 contract shall provide prepaid registration fees for a
24 specified number of undergraduate semester credit hours not to
25 exceed the average number of hours required for the conference
26 of a baccalaureate degree. The cost of participation in the
27 university plan shall be based primarily on the current and
28 projected registration fees within the State University System
29 and the number of years expected to elapse between the
30 purchase of the plan on behalf of a qualified beneficiary and
31 the exercise of the benefits provided in the plan by such
27
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Bill No. CS for SB 2100
Amendment No.
1 beneficiary. Qualified beneficiaries shall bear the cost of
2 any laboratory fees associated with enrollment in specific
3 courses. In the event that a qualified beneficiary fails to
4 be admitted to a state university or chooses to attend a
5 community college, the qualified beneficiary may convert the
6 average number of semester credit hours required for the
7 conference of an associate degree from a university plan to a
8 community college plan and may retain the remaining semester
9 credit hours in the university plan or may request a refund
10 for prepaid credit hours in excess of the average number of
11 semester credit hours required for the conference of an
12 associate degree pursuant to subparagraph (6)(a)7. Each
13 qualified beneficiary shall be classified as a resident for
14 tuition purposes pursuant to s. 240.1201 regardless of his or
15 her actual legal residence.
16 (c) Through the dormitory residence plan, the advance
17 payment contract may provide prepaid housing fees for a
18 maximum of 10 semesters of full-time undergraduate enrollment
19 in a state university. Dormitory residence plans shall be
20 purchased in increments of 2 semesters. The cost of
21 participation in the dormitory residence plan shall be based
22 primarily on the average current and projected housing fees
23 within the State University System and the number of years
24 expected to elapse between the purchase of the plan on behalf
25 of a qualified beneficiary and the exercise of the benefits
26 provided in the plan by such beneficiary. Qualified
27 beneficiaries shall bear the cost of any additional elective
28 charges such as laundry service or long-distance telephone
29 service. Each state university may specify the residence
30 halls or other university-held residences eligible for
31 inclusion in the plan. In addition, any state university may
28
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SENATE AMENDMENT
Bill No. CS for SB 2100
Amendment No.
1 request immediate termination of a dormitory residence
2 contract based on a violation or multiple violations of rules
3 of the residence hall or other university-held residences.
4 Qualified beneficiaries shall have the highest priority in the
5 assignment of housing within university residence halls. In
6 the event that sufficient housing is not available for all
7 qualified beneficiaries, the board shall refund the purchaser
8 or qualified beneficiary an amount equal to the fees charged
9 for dormitory residence during that semester. If a qualified
10 beneficiary fails to be admitted to a state university or
11 chooses to attend a community college that operates one or
12 more dormitories or residency opportunities, or has one or
13 more dormitories or residency opportunities operated by the
14 community college direct-support organization, the qualified
15 beneficiary may transfer or cause to have transferred to the
16 community college, or community college direct-support
17 organization, the fees associated with dormitory residence.
18 Dormitory fees transferred to the community college or
19 community college direct-support organization may not exceed
20 the maximum fees charged for state university dormitory
21 residence for the purposes of this section, or the fees
22 charged for community college or community college
23 direct-support organization dormitories or residency
24 opportunities, whichever is less.
25 (d) A qualified beneficiary may apply a community
26 college plan, university plan, or dormitory residence plan
27 toward any eligible independent college or university. An
28 independent college or university which is located and
29 chartered in Florida, is not for profit, is accredited by the
30 Commission on Colleges of the Southern Association of Colleges
31 and Schools or the Accrediting Commission of the Association
29
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SENATE AMENDMENT
Bill No. CS for SB 2100
Amendment No.
1 of Independent Colleges and Schools, and which confers degrees
2 as defined in s. 246.021 shall be eligible for such
3 application. The board shall transfer or cause to have
4 transferred to the eligible independent college or university
5 designated by the qualified beneficiary an amount not to
6 exceed the redemption value of the advance payment contract
7 within a state postsecondary institution. In the event that
8 the cost of registration or housing fees at the independent
9 college or university is less than the corresponding fees at a
10 state postsecondary institution, the amount transferred shall
11 not exceed the actual cost of registration or housing fees.
12 No transfer authorized pursuant to this paragraph shall exceed
13 the number of semester credit hours or semesters of dormitory
14 residence contracted on behalf of a qualified beneficiary.
15 (e) A qualified beneficiary may apply the benefits of
16 an advance payment contract toward an eligible out-of-state
17 college or university. An out-of-state college or university
18 which is not for profit, is accredited by a regional
19 accrediting association, and which confers baccalaureate
20 degrees shall be eligible for such application. The board
21 shall transfer, or cause to have transferred, an amount not to
22 exceed the redemption value of the advance payment contract or
23 the original purchase price plus 5 percent compounded
24 interest, whichever is less, after assessment of a reasonable
25 transfer fee. In the event that the cost of registration or
26 housing fees charged the qualified beneficiary at the eligible
27 out-of-state college or university is less than this
28 calculated amount, the amount transferred shall not exceed the
29 actual cost of registration or housing fees. Any remaining
30 amount shall be transferred in subsequent semesters until the
31 transfer value is depleted. No transfer authorized pursuant
30
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SENATE AMENDMENT
Bill No. CS for SB 2100
Amendment No.
1 to this paragraph shall exceed the number of semester credit
2 hours or semesters of dormitory residence contracted on behalf
3 of a qualified beneficiary.
4 (8) The board shall solicit proposals for the
5 operation of the Florida Prepaid Postsecondary Education
6 Expense Program pursuant to s. 287.057, through which the
7 board shall contract for the services of a records
8 administrator, a trustee services firm, and one or more
9 product providers.
10 (a) The records administrator shall be the entity
11 designated by the board to conduct the daily operations of the
12 program on behalf of the board. The goals of the board in
13 selecting a records administrator shall be to provide all
14 purchasers with the most secure, well-diversified, and
15 beneficially administered postsecondary education expense plan
16 possible, to allow all qualified firms interested in providing
17 such services equal consideration, and to provide such
18 services to the state at no cost and to the purchasers at the
19 lowest cost possible. Evaluations of proposals submitted
20 pursuant to this paragraph shall include, but not be limited
21 to, the following criteria:
22 1. Fees and other costs charged to purchasers that
23 affect account values or operational costs related to the
24 program.
25 2. Past experience in records administration and
26 current ability to provide timely and accurate service in the
27 areas of records administration, audit and reconciliation,
28 plan communication, participant service, and complaint
29 resolution.
30 3. Sufficient staff and computer capability for the
31 scope and level of service expected by the board.
31
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Bill No. CS for SB 2100
Amendment No.
1 4. Financial history and current financial strength
2 and capital adequacy to provide administrative services
3 required by the board.
4 (b) The trustee services firm shall be the entity
5 designated by the board to select and supervise investment
6 programs on behalf of the board. The goals of the board in
7 selecting a trustee services firm shall be to obtain the
8 highest standards of professional trustee services, to allow
9 all qualified firms interested in providing such services
10 equal consideration, and to provide such services to the state
11 at no cost and to the purchasers at the lowest cost possible.
12 The trustee services firm shall agree to meet the obligations
13 of the board to qualified beneficiaries if moneys in the fund
14 fail to offset the obligations of the board as a result of
15 imprudent selection or supervision of investment programs by
16 such firm. Evaluations of proposals submitted pursuant to
17 this paragraph shall include, but not be limited to, the
18 following criteria:
19 1. Adequacy of trustee services for supervision and
20 management of the program, including current operations and
21 staff organization and commitment of management to the
22 proposal.
23 2. Capability to execute program responsibilities
24 within time and regulatory constraints.
25 3. Past experience in trustee services and current
26 ability to maintain regular and continuous interactions with
27 the board, records administrator, and product provider.
28 4. The minimum purchaser participation assumed within
29 the proposal and any additional requirements of purchasers.
30 5. Adequacy of technical assistance and services
31 proposed for staff.
32
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Bill No. CS for SB 2100
Amendment No.
1 6. Adequacy of a management system for evaluating and
2 improving overall trustee services to the program.
3 7. Adequacy of facilities, equipment, and electronic
4 data processing services.
5 8. Detailed projections of administrative costs,
6 including the amount and type of insurance coverage, and
7 detailed projections of total costs.
8 (c)1. The product providers shall be the entities
9 designated by the board to develop investment portfolios on
10 behalf of the board to achieve the purposes of this section.
11 Product providers shall be limited to authorized insurers as
12 defined in s. 624.09, banks as defined in s. 658.12,
13 associations as defined in s. 665.012, authorized Securities
14 and Exchange Commission investment advisers, and investment
15 companies as defined in the Investment Company Act of 1940.
16 All product providers shall have their principal place of
17 business and corporate charter located and registered in the
18 United States. In addition, each product provider shall agree
19 to meet the obligations of the board to qualified
20 beneficiaries if moneys in the fund fail to offset the
21 obligations of the board as a result of imprudent investing by
22 such provider. Each authorized insurer shall evidence superior
23 performance overall on an acceptable level of surety in
24 meeting its obligations to its policyholders and other
25 contractual obligations. Only qualified public depositories
26 approved by the State Insurance Commissioner and Treasurer
27 shall be eligible for board consideration. Each investment
28 company shall provide investment plans as specified within the
29 request for proposals.
30 2. The goals of the board in selecting a product
31 provider company shall be to provide all purchasers with the
33
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SENATE AMENDMENT
Bill No. CS for SB 2100
Amendment No.
1 most secure, well-diversified, and beneficially administered
2 postsecondary education expense plan possible, to allow all
3 qualified firms interested in providing such services equal
4 consideration, and to provide such services to the state at no
5 cost and to the purchasers at the lowest cost possible.
6 Evaluations of proposals submitted pursuant to this paragraph
7 shall include, but not be limited to, the following criteria:
8 a. Fees and other costs charged to purchasers that
9 affect account values or operational costs related to the
10 program.
11 b. Past and current investment performance, including
12 investment and interest rate history, guaranteed minimum rates
13 of interest, consistency of investment performance, and any
14 terms and conditions under which moneys are held.
15 c. Past experience and ability to provide timely and
16 accurate service in the areas of records administration,
17 benefit payments, investment management, and complaint
18 resolution.
19 d. Financial history and current financial strength
20 and capital adequacy to provide products, including operating
21 procedures and other methods of protecting program assets.
22 (15)(9) OBLIGATIONS OF BOARD; PAYMENT.--The state
23 shall agree to meet the obligations of the board to qualified
24 beneficiaries if moneys in the fund fail to offset the
25 obligations of the board. The Legislature shall appropriate to
26 the Florida Prepaid College Postsecondary Education Expense
27 Trust Fund the amount necessary to meet the obligations of the
28 board to qualified beneficiaries.
29 (16)(10) ASSETS OF THE FUND; EXPENDITURE
30 PRIORITY.--The assets of the fund shall be maintained,
31 invested, and expended solely for the purposes of this section
34
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Bill No. CS for SB 2100
Amendment No.
1 and shall not be loaned, transferred, or otherwise used by the
2 state for any purpose other than the purposes of this section.
3 This subsection shall not be construed to prohibit the board
4 from investing in, by purchase or otherwise, bonds, notes, or
5 other obligations of the state or an agency or instrumentality
6 of the state. Unless otherwise specified by the board, assets
7 of the fund shall be expended in the following order of
8 priority:
9 (a) To make payments to state postsecondary
10 institutions on behalf of qualified beneficiaries.
11 (b) To make refunds upon termination of advance
12 payment contracts.
13 (c) To pay the costs of program administration and
14 operations.
15 (17)(11) EXEMPTION FROM CLAIMS OF CREDITORS.--Moneys
16 paid into or out of the fund by or on behalf of a purchaser or
17 qualified beneficiary of an advance payment contract made
18 under this section, which contract has not been terminated,
19 are exempt, as provided by s. 222.22, from all claims of
20 creditors of the purchaser or the beneficiary. Neither moneys
21 paid into the program nor benefits accrued through the program
22 may be pledged for the purpose of securing a loan.
23 (18)(12) PAYROLL DEDUCTION AUTHORITY.--The state or
24 any state agency, county, municipality, or other political
25 subdivision may, by contract or collective bargaining
26 agreement, agree with any employee to remit payments toward
27 advance payment contracts through payroll deductions made by
28 the appropriate officer or officers of the state, state
29 agency, county, municipality, or political subdivision. Such
30 payments shall be held and administered in accordance with
31 this section.
35
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Bill No. CS for SB 2100
Amendment No.
1 (19)(13) DISCLAIMER.--Nothing in this section shall be
2 construed as a promise or guarantee that a qualified
3 beneficiary will be admitted to a state postsecondary
4 institution or to a particular state postsecondary
5 institution, will be allowed to continue enrollment at a state
6 postsecondary institution after admission, or will be
7 graduated from a state postsecondary institution.
8 (20)(14) PROGRAM TERMINATION.--In the event that the
9 state determines the program to be financially infeasible, the
10 state may discontinue the provision of the program. Any
11 qualified beneficiary who has been accepted by and is enrolled
12 or is within 5 years of enrollment in an eligible independent
13 college or university or state postsecondary institution shall
14 be entitled to exercise the complete benefits for which he or
15 she has contracted. All other contract holders shall receive
16 a refund, pursuant to subparagraph (6)(a)7., of the amount
17 paid in and an additional amount in the nature of interest at
18 a rate that corresponds, at a minimum, to the prevailing
19 interest rates for savings accounts provided by banks and
20 savings and loan associations.
21 (21) ANNUAL REPORT.--The board shall annually prepare
22 or cause to be prepared a report setting forth in appropriate
23 detail an accounting of the fund and a description of the
24 financial condition of the program at the close of each fiscal
25 year. Such report shall be submitted to the President of the
26 Senate, the Speaker of the House of Representatives, and
27 members of the State Board of Education on or before March 31
28 each year. In addition, the board shall make the report
29 available to purchasers of advance payment contracts. The
30 board shall provide to the Board of Regents and the State
31 Board of Community Colleges, by March 31 each year, complete
36
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Bill No. CS for SB 2100
Amendment No.
1 advance payment contract sales information, including
2 projected postsecondary enrollments of qualified
3 beneficiaries. The accounts of the fund shall be subject to
4 annual audits by the Auditor General or his or her designee.
5 (22) DIRECT-SUPPORT ORGANIZATION; AUTHORITY.--
6 (a) The board may establish a direct-support
7 organization which is:
8 1. A Florida corporation, not for profit, incorporated
9 under the provisions of chapter 617 and approved by the
10 Secretary of State.
11 2. Organized and operated exclusively to receive,
12 hold, invest, and administer property and to make expenditures
13 to or for the benefit of the program.
14 3. An organization which the board, after review, has
15 certified to be operating in a manner consistent with the
16 goals of the program and in the best interests of the state.
17 Unless so certified, the organization may not use the name of
18 the program.
19 4. Subject to an annual postaudit by an independent
20 certified public accountant in accordance with rules
21 promulgated by the board. The annual audit shall be submitted
22 to the State Board of Administration and the Auditor General
23 for review. The State Board of Administration and Auditor
24 General shall have the authority to require and receive from
25 the organization or its independent auditor any detail or
26 supplemental data relative to the operation of the
27 organization. The identity of donors who desire to remain
28 anonymous shall be confidential and exempt from the provisions
29 of s. 119.07(1) and s. 24(a), Art. I of the State
30 Constitution, and such anonymity shall be maintained in the
31 auditor's report. Information received by the organization
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Bill No. CS for SB 2100
Amendment No.
1 that is otherwise confidential or exempt by law shall retain
2 such status. Any sensitive, personal information regarding
3 contract beneficiaries, including their identities, is exempt
4 from the provisions of s. 119.07(1) and s. 24(a), Art. I of
5 the State Constitution.
6 (b) The chair and the executive director of the board
7 shall be directors of the direct-support organization and
8 shall jointly name three other individuals to serve as
9 directors of the organization.
10 Section 40. Section 222.22, Florida Statutes, is
11 amended to read:
12 222.22 Exemption of moneys in the Prepaid
13 Postsecondary Education Expense Trust Fund from legal
14 process.--Moneys paid into or out of the Florida Prepaid
15 College Postsecondary Education Expense Trust Fund by or on
16 behalf of a purchaser or qualified beneficiary pursuant to an
17 advance payment contract made under s. 240.551, which contract
18 has not been terminated, are not liable to attachment,
19 garnishment, or legal process in the state in favor of any
20 creditor of the purchaser or beneficiary of such advance
21 payment contract.
22 Section 41. Subsection (2) of section 732.402, Florida
23 Statutes, is amended to read:
24 732.402 Exempt property.--
25 (2) Exempt property shall consist of:
26 (a) Household furniture, furnishings, and appliances
27 in the decedent's usual place of abode up to a net value of
28 $10,000 as of the date of death.; and
29 (b) All automobiles held in the decedent's name and
30 regularly used by the decedent or members of the decedent's
31 immediate family as their personal automobiles.
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Amendment No.
1 (c) Florida Prepaid College Program contracts
2 purchased pursuant to s. 240.551.
3 Section 42. For the purpose of incorporating the
4 amendment to s. 732.402, Florida Statutes, in references
5 thereto, subsection (13) of section 731.201 and subsection (1)
6 of section 735.301, Florida Statutes, are reenacted to read:
7 731.201 General definitions.--Subject to additional
8 definitions in subsequent chapters that are applicable to
9 specific chapters or parts, and unless the context otherwise
10 requires, in this code and chapters 737, 738, and 744:
11 (13) "Exempt property" means the property of a
12 decedent's estate which is described in s. 732.402.
13 735.301 Disposition without administration.--
14 (1) No administration shall be required or formal
15 proceedings instituted upon the estate of a decedent leaving
16 only personal property exempt under the provisions of s.
17 732.402, personal property exempt from the claims of creditors
18 under the Constitution of Florida, and nonexempt personal
19 property the value of which does not exceed the sum of the
20 amount of preferred funeral expenses and reasonable and
21 necessary medical and hospital expenses of the last 60 days of
22 the last illness.
23
24 (Redesignate subsequent sections.)
25
26
27 ================ T I T L E A M E N D M E N T ===============
28 And the title is amended as follows:
29 On page 2, line 22, after the semicolon,
30
31 insert:
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SENATE AMENDMENT
Bill No. CS for SB 2100
Amendment No.
1 amending s. 240.551, F.S.; renaming the Florida
2 Prepaid Postsecondary Education Expense
3 Program, Board, and Trust Fund the Florida
4 Prepaid College Program, Board, and Trust Fund,
5 respectively; reordering provisions and
6 providing technical revisions; deleting
7 obsolete provisions; conforming
8 cross-references; permitting soliciting and
9 contracting for records administration
10 services; providing for the inclusion of
11 certain fees within advance payment contracts
12 for tuition; amending s. 222.22, F.S.;
13 conforming provisions; amending s. 732.402,
14 F.S.; exempting Florida Prepaid College Program
15 contracts from the probate claims of creditors;
16 reenacting ss. 731.201(13) and 735.301(1),
17 F.S., relating to probate, to incorporate the
18 amendment to s. 732.402, F.S., in references;
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