House Bill 4259er

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    ENROLLED

    1998 Legislature                     HB 4259, Second Engrossed



  1

  2         An act relating to postsecondary education;

  3         amending s. 232.2466, F.S.; revising

  4         requirements for the college-ready diploma

  5         program; amending s. 233.061, F.S.; including

  6         the study of Hispanic and Women's contributions

  7         to the United States in required public school

  8         instruction; amending s. 239.117, F.S.;

  9         exempting specified students from postsecondary

10         fees; amending s. 239.225, F.S.; revising

11         provisions relating to the Vocational

12         Improvement Program; amending s. 240.1163,

13         F.S.; revising dual enrollment provisions;

14         amending s. 240.235, F.S.; exempting specified

15         university students from fees; amending s.

16         240.311, F.S., relating to powers and duties of

17         the State Board of Community Colleges; amending

18         s. 240.321, F.S., relating to duties of

19         community college district boards of trustees;

20         requiring notification of alternative remedial

21         options; amending s. 240.324, F.S., relating to

22         the community college accountability process;

23         providing for coinciding reporting deadlines;

24         clarifying language; amending s. 240.35, F.S.;

25         exempting specified community college students

26         from fees; amending s. 240.36, F.S.; revising

27         provisions relating to the uses of a trust fund

28         for community colleges; amending s. 240.382,

29         F.S.; correcting a cross-reference; amending s.

30         240.4097, F.S., relating to the Florida

31         Postsecondary Student Assistance Grant Program;


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    ENROLLED

    1998 Legislature                     HB 4259, Second Engrossed



  1         requiring the establishment of application

  2         deadlines; amending s. 246.201, F.S.; revising

  3         legislative intent; amending s. 246.203, F.S.;

  4         renaming the State Board of Independent

  5         Postsecondary Vocational, Technical, Trade, and

  6         Business Schools the State Board of Nonpublic

  7         Career Education; revising definition of

  8         schools regulated by the board; amending s.

  9         246.205, F.S.; conforming provisions; amending

10         s. 246.207, F.S.; revising powers and duties of

11         the board; amending s. 246.213, F.S.;

12         conforming provisions; amending s. 246.215,

13         F.S.; requiring licensing of specified programs

14         by the board; creating s. 246.216, F.S.;

15         providing for exemption from licensure for

16         specified entities; providing for statements of

17         exemption; providing for revocation of

18         statements of exemption; providing for

19         remedies; amending ss. 246.219, 246.220,

20         246.2265, 246.227, and 246.31, F.S.; conforming

21         provisions; amending ss. 20.15, 240.40204,

22         246.011, 246.081, 246.085, 246.091, 246.111,

23         246.50, 455.2125, 455.554, 467.009, 476.178,

24         477.023, and 488.01, F.S.; conforming

25         provisions; amending s. 232.246, F.S.; revising

26         credit requirements for high school graduation;

27         creating s. 233.0616, F.S.; encouraging

28         elementary schools and middle schools to

29         implement personal fitness programs and

30         providing for the allocation of funds;

31         providing for the allocation of funds for


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    ENROLLED

    1998 Legislature                     HB 4259, Second Engrossed



  1         upgrading a physical education specialist

  2         position in the Department of Education;

  3         amending s. 240.61, F.S.; revising criteria for

  4         participating in the college reach-out program;

  5         revising the due date for a report on the

  6         college reach-out program; removing the

  7         requirement for including longitudinal cohort

  8         assessment; repealing s. 240.154, F.S., which

  9         provides for undergraduate enhancement;

10         repealing s. 240.278, F.S., which provides for

11         the establishment and use of the Quality

12         Assurance Fund; repealing s. 240.521, F.S.,

13         which provides for the establishment of a state

14         university or a branch of an existing state

15         university to be located in East Central

16         Florida; repealing s. 240.522, F.S., which

17         provides for the establishment of a university

18         in Southwest Florida; repealing s. 240.523,

19         F.S., which provides for the establishment of a

20         4-year college in Dade County; repealing s.

21         240.525, F.S., which provides for the

22         establishment of a state university or branch

23         of an existing state university or state

24         college in Duval County; amending s. 216.136,

25         F.S.; providing duties of the Education

26         Estimating Conference; amending s. 240.409,

27         F.S.; authorizing eligibility determination and

28         grant distribution for the Florida Public

29         Student Assistance Grant Program to be

30         conducted by the receiving institution;

31         specifying a dollar value range for grant


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    ENROLLED

    1998 Legislature                     HB 4259, Second Engrossed



  1         awards; amending s. 240.4095, F.S.; authorizing

  2         eligibility determination and grant

  3         distribution for the Florida Private Student

  4         Assistance Grant Program to be conducted by the

  5         receiving institution; specifying a dollar

  6         value range for grant awards; amending s.

  7         240.4097, F.S.; authorizing eligibility

  8         determination and grant distribution for the

  9         Florida Postsecondary Student Assistance Grant

10         Program to be conducted by the receiving

11         institution; specifying a dollar value range

12         for grant awards; amending s. 240.551, F.S.;

13         renaming the Florida Prepaid Postsecondary

14         Education Expense Program, Board, and Trust

15         Fund the Florida Prepaid College Program,

16         Board, and Trust Fund, respectively; reordering

17         provisions and providing technical revisions;

18         deleting obsolete provisions; conforming

19         cross-references; permitting soliciting and

20         contracting for records administration

21         services; providing for the inclusion of

22         certain fees within advance payment contracts

23         for tuition; amending s. 222.22, F.S.;

24         conforming provisions; amending s. 732.402,

25         F.S.; exempting Florida Prepaid College Program

26         contracts from the probate claims of creditors;

27         reenacting ss. 731.201(13) and 735.301(1),

28         F.S., relating to probate, to incorporate the

29         amendment to s. 732.402, F.S., in references;

30         amending s. 240.207, F.S.; providing terms of

31         office for members of the Board of Regents;


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    ENROLLED

    1998 Legislature                     HB 4259, Second Engrossed



  1         amending s. 240.209, F.S.; revising provisions

  2         relating to the selection of the Chancellor;

  3         deleting a restriction on the faculty

  4         appointment of former university presidents;

  5         creating s. 240.136, F.S.; requiring state

  6         university and community college student

  7         government associations to establish a process

  8         for removal of certain student government

  9         officials; providing requirements; providing

10         for a referendum; providing effective dates.

11

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

13

14         Section 1.  Section 232.2466, Florida Statutes, is

15  amended to read:

16         232.2466  College-ready diploma program.--

17         (1)  Beginning with the 1998-1999 1997-1998 school

18  year, each school district shall award a differentiated

19  college-ready diploma to each student who:

20         (a)  Successfully completes the requirements for a

21  standard high school diploma as prescribed by s. 232.246.

22  Among courses taken to fulfill the 24-academic-credit

23  requirement, a student must take high school courses that are

24  adopted by the Board of Regents and recommended by the State

25  Board of Community Colleges as college-preparatory academic

26  courses.:

27         1.  Two credits in algebra and one credit in geometry,

28  or their equivalents, as determined by the state board.

29         2.  One credit in biology, one credit in chemistry, and

30  one credit in physics, or their equivalents, as determined by

31  the state board.


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    ENROLLED

    1998 Legislature                     HB 4259, Second Engrossed



  1         3.  Two credits in the same foreign language, taken for

  2  elective credit. A student whose native language is not

  3  English is exempt from this requirement if the student

  4  demonstrates proficiency in the native language. American sign

  5  language constitutes a foreign language.

  6         (b)  Takes the postsecondary education common placement

  7  test prescribed in s. 240.117, or an equivalent test

  8  identified by the State Board of Education, before graduation

  9  and scores at or above the established statewide passing score

10  in each test area.

11         (2)  A college-ready diploma entitles a student to

12  admission without additional placement testing to a public

13  postsecondary education program that terminates in a technical

14  certificate, an applied technology diploma, an associate in

15  applied science degree, an associate in science degree, or an

16  associate in arts degree, if the student enters postsecondary

17  education within 2 years after earning the college-ready

18  diploma.

19         (3)  The Department of Education shall periodically

20  convene a task force of educators and employers to recommend

21  additional incentives for students to pursue a college-ready

22  diploma.  The incentives may include awards and recognition,

23  preference for positions in firms, and early registration

24  privileges in postsecondary education institutions.

25         Section 2.  Paragraphs (o) and (p) are added to

26  subsection (2) of section 233.061, Florida Statutes, to read:

27         233.061  Required instruction.--

28         (2)  Members of the instructional staff of the public

29  schools, subject to the rules and regulations of the

30  commissioner, the state board, and the school board, shall

31  teach efficiently and faithfully, using the books and


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    ENROLLED

    1998 Legislature                     HB 4259, Second Engrossed



  1  materials required, following the prescribed courses of study,

  2  and employing approved methods of instruction, the following:

  3         (o)  The study of Hispanic contributions to the United

  4  States.

  5         (p)  The study of Women's Contributions to the United

  6  States.

  7         Section 3.  Paragraph (f) is added to subsection (4) of

  8  section 239.117, Florida Statutes, to read:

  9         239.117  Postsecondary student fees.--

10         (4)  The following students are exempt from the payment

11  of registration, matriculation, and laboratory fees:

12         (f)  A student who is a proprietor, owner, or worker of

13  a company whose business has been at least 50 percent

14  negatively financially impacted by the buy-out of property

15  around Lake Apopka by the State of Florida. Such a student may

16  receive a fee exemption only if the student has not received

17  compensation because of the buy-out, the student is designated

18  a Florida resident for tuition purposes, pursuant to s.

19  240.1201, and the student has applied for and been denied

20  financial aid, pursuant to s. 240.404, which would have

21  provided, at a minimum, payment of all student fees. The

22  student is responsible for providing evidence to the

23  postsecondary education institution verifying that the

24  conditions of this paragraph have been met, including support

25  documentation provided by the Department of Revenue. The

26  student must be currently enrolled in, or begin coursework

27  within, a program area by fall semester 2000.  The exemption

28  is valid for a period of 4 years from the date that the

29  postsecondary education institution confirms that the

30  conditions of this paragraph have been met.

31


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    ENROLLED

    1998 Legislature                     HB 4259, Second Engrossed



  1         Section 4.  Subsection (1) and paragraph (c) of

  2  subsection (3) of section 239.225, Florida Statutes, are

  3  amended, and subsection (5) is added to said section, to read:

  4         239.225  Vocational Improvement Program.--

  5         (1)  There is established the Vocational Improvement

  6  Program to be administered by the Department of Education

  7  pursuant to this section and rules of the State Board for

  8  Career Education. Such rules must provide for the submission

  9  of applications and distribution of funds pursuant to this

10  section. The priorities for allocation of funds for the

11  program are the development of vocational programs for

12  disadvantaged persons; recruitment, preservice and inservice

13  activities for vocational counselors and teachers; the

14  development of information systems that are compatible between

15  school districts and community colleges; job placement

16  services for vocational completers; the development of

17  exploratory vocational courses; activities that provide

18  faculty articulation for the purpose of integrating vocational

19  and academic instruction; and activities that ensure greater

20  community involvement in career education.

21         (3)

22         (c)  The State Board for Career Education may adopt

23  rules necessary to implement the provisions of this

24  subsection.

25         (5)  The State Board for Career Education may adopt

26  rules to implement this program.

27         Section 5.  Subsections (4) and (5) are added to

28  section 240.1163, Florida Statutes, to read:

29         240.1163  Joint dual enrollment and advanced placement

30  instruction.--

31


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    ENROLLED

    1998 Legislature                     HB 4259, Second Engrossed



  1         (4)  School districts and community colleges must weigh

  2  college-level dual enrollment courses the same as honors

  3  courses and advanced placement courses when grade point

  4  averages are calculated. Alternative grade calculation or

  5  weighting systems that discriminate against dual enrollment

  6  courses are prohibited.

  7         (5)  The Commissioner of Education may approve dual

  8  enrollment agreements for limited course offerings that have

  9  statewide appeal. Such programs shall be limited to a single

10  site with multiple county participation.

11         Section 6.  Subsections (6), (7), (8), and (9) of

12  section 240.235, Florida Statutes, are renumbered as

13  subsections (7), (8), (9), and (10), respectively, and a new

14  subsection (6) is added to said section to read:

15         240.235  Fees.--

16         (6)  Any proprietor, owner, or worker of a company

17  whose business has been at least 50 percent negatively

18  financially impacted by the buy-out of property around Lake

19  Apopka by the State of Florida is exempt from the payment of

20  registration, matriculation, and laboratory fees. A student

21  receiving a fee exemption in accordance with this subsection

22  must not have received compensation because of the buy-out,

23  must be designated a Florida resident for tuition purposes,

24  pursuant to s. 240.1201, and must first have applied for and

25  been denied financial aid, pursuant to s. 240.404, which would

26  have provided, at a minimum, payment of all student fees. The

27  student is responsible for providing evidence to the

28  postsecondary education institution verifying that the

29  conditions of this subsection have been met, including support

30  documentation provided by the Department of Revenue. The

31  student must be currently enrolled in, or begin coursework


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    ENROLLED

    1998 Legislature                     HB 4259, Second Engrossed



  1  within, a program area by fall semester 2000. The exemption is

  2  valid for a period of 4 years from the date that the

  3  postsecondary education institution confirms that the

  4  conditions of this subsection have been met.

  5         Section 7.  Subsection (3) of section 240.311, Florida

  6  Statutes, is amended to read:

  7         240.311  State Board of Community Colleges; powers and

  8  duties.--

  9         (3)  The State Board of Community Colleges shall:

10         (a)  Provide for each community college to offer

11  educational training and service programs designed to meet the

12  needs of both students and the communities served.

13         (b)  Provide, through rule, for the coordination of the

14  state community college system.

15         (c)  Review new associate degree or certificate

16  programs for relationship to student demand; conduct periodic

17  reviews of existing programs; and provide rules for

18  termination of associate degree or certificate programs when

19  excessive duplication exists.

20         (d)  Ensure that the rules and procedures of community

21  college district boards relating to admission to, enrollment

22  in, employment in, and programs, services, functions, and

23  activities of each college provide equal access and equal

24  opportunity for all persons.

25         (e)  Advise presidents of community colleges of the

26  fiscal policies adopted by the Legislature and of their

27  responsibilities to follow such policies.

28         (f)  Specify, by rule, procedures to be used by the

29  boards of trustees in the periodic evaluations of presidents

30  and formally review the evaluations of presidents by the

31  boards of trustees.


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  1         (g)  Recommend to the State Board of Education minimum

  2  standards for the operation of each community college as

  3  required in s. 240.325, which standards may include, but are

  4  not limited to, general qualifications of personnel,

  5  budgeting, accounting and financial procedures, educational

  6  programs, student admissions and services, and community

  7  services.

  8         (h)  Establish an effective information system which

  9  will provide composite data about the community colleges and

10  assure that special analyses and studies about the colleges

11  are conducted, as necessary, for provision of accurate and

12  cost-effective information about the colleges and about the

13  community college system as a whole.

14         (i)  Encourage the colleges and the system as a whole

15  to cooperate with other educational institutions and agencies

16  and with all levels and agencies of government in the interest

17  of effective utilization of all resources, programs, and

18  services.

19         (j)  Establish criteria for making recommendations

20  relative to modifying district boundary lines and for making

21  recommendations upon all proposals for the establishment of

22  additional centers or campuses for community colleges.

23         (k)  Develop a plan in cooperation with the local

24  school district and the Department of Education to include any

25  and all counties in a community college service district.

26         (l)  Assess the need to consolidate any community

27  colleges.

28         (m)  Develop and adopt guidelines relating to salary

29  and fringe benefit policies for community college

30  administrators, including community college presidents.

31


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  1         (n)  Develop and adopt guidelines relating to official

  2  travel by community college employees.

  3         (o)  Receive an annual administrative review of each

  4  community college.

  5         1.  Such review shall include, but is not limited to,

  6  the administrator-to-faculty ratio, the percent of funds for

  7  administrative costs in the total budget, and the percent of

  8  funds in support programs compared to the percent of funds in

  9  instructional programs and may include such other indicators

10  of quality as are necessary.

11         2.  The review shall also include all courses offered

12  by a community college outside its district.  Courses offered

13  outside the home district which are not approved by the State

14  Board of Community Colleges shall not be counted for funding

15  purposes or to meet enrollment assignments. For purposes of

16  this subparagraph, electronically originated instruction, to

17  include satellite, broadcast, and internet delivered

18  instruction, shall be exempt. Exemption is only permitted when

19  the community college's intent is to offer the instruction for

20  students residing within the community college's home district

21  and only markets the instruction to students residing within

22  the community college's home district. If a community

23  college's intent is to market the electronically originated

24  instruction outside its home district and thus recruit

25  students outside its home district, the community college must

26  receive the approval of the State Board of Community Colleges.

27  The State Board of Community Colleges shall have authority to

28  review any electronically originated instruction for

29  compliance with this section.

30         (p)  Encourage and support activities which promote and

31  advance college and statewide direct-support organizations.


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  1         (q)  Specify, by rule, the degree program courses that

  2  may be taken by students concurrently enrolled in

  3  college-preparatory instruction.

  4         Section 8.  Section 240.321, Florida Statutes, is

  5  amended to read:

  6         240.321  Community college district board of trustees;

  7  rules for admissions of students.--The board of trustees shall

  8  make rules governing admissions of students.  These rules

  9  shall include the following:

10         (1)  Admissions counseling shall be provided to all

11  students entering college credit programs, which counseling

12  shall utilize tests to measure achievement of college-level

13  communication and computation competencies by all students

14  entering college credit programs.

15         (2)  Admission to associate degree programs is subject

16  to minimum standards adopted by the State Board of Education

17  and shall require:

18         (a)  A standard high school diploma, a high school

19  equivalency diploma as prescribed in s. 229.814, previously

20  demonstrated competency in college credit postsecondary

21  coursework, or, in the case of a student who is home educated,

22  a signed affidavit submitted by the student's parent or legal

23  guardian attesting that the student has completed a home

24  education program pursuant to the requirements of s.

25  232.02(4).  Students who are enrolled in a dual enrollment or

26  early admission program pursuant to s. 240.116 and secondary

27  students enrolled in college-level instruction creditable

28  toward the associate degree, but not toward the high school

29  diploma, shall be exempt from this requirement.

30         (b)  A demonstrated level of achievement of

31  college-level communication and computation skills. Students


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  1  entering a postsecondary education program within 2 years of

  2  graduation from high school with an earned college-ready

  3  diploma issued pursuant to s. 232.2466 shall be exempt from

  4  this testing requirement.

  5         (c)  Any other requirements established by the board of

  6  trustees.

  7         (3)  Admission to other programs within the community

  8  college shall include education requirements as established by

  9  the board of trustees.

10

11  Each board of trustees shall establish policies that notify

12  students about, and place students into, adult basic

13  education, adult secondary education, or other instructional

14  programs that provide students with alternatives to

15  traditional college-preparatory instruction, including private

16  provider instruction. Such notification shall include a

17  written listing or a prominent display of information on

18  alternative remedial options that must be available to each

19  student who scores below college level in any area on the

20  common placement test. The list or display shall include, but

21  is not limited to, options provided by the community college,

22  adult education programs, and programs provided by

23  private-sector providers. The college shall not endorse,

24  recommend, evaluate, or rank any of the providers. The list of

25  providers or the display materials shall include all those

26  providers that request to be included. The written list must

27  provide students with specific contact information and

28  disclose the full costs of the course tuition, laboratory

29  fees, and instructional materials of each option listed. A

30  student who elects a private provider for remedial instruction

31  is entitled to enroll in up to 12 credits of college-level


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  1  courses in skill areas other than those for which the student

  2  is being remediated. A student is prohibited from enrolling in

  3  additional college-level courses until the student scores

  4  above the cut-score on all sections of the common placement

  5  test.

  6         Section 9.  Section 240.324, Florida Statutes, is

  7  amended to read:

  8         240.324  Community college accountability process.--

  9         (1)  It is the intent of the Legislature that a

10  management and accountability process be implemented which

11  provides for the systematic, ongoing improvement and

12  assessment of the improvement of the quality and efficiency of

13  the State Community College System.  Accordingly, the State

14  Board of Community Colleges and the community college boards

15  of trustees shall develop and implement an accountability a

16  plan to improve and evaluate the instructional and

17  administrative efficiency and effectiveness of the State

18  Community College System.  This plan shall be designed in

19  consultation with staff of the Governor and the Legislature

20  and must address the following issues:

21         (a)  Graduation rates of A.A. and A.S. degree-seeking

22  students compared to first-time-enrolled students seeking the

23  associate degree.

24         (b)  Minority student enrollment and retention rates.

25         (c)  Student performance, including student performance

26  in college-level academic skills, mean grade point averages

27  for community college A.A. transfer students, and community

28  college student performance on state licensure examinations.

29         (d)  Job placement rates of community college

30  vocational students.

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  1         (e)  Student progression by admission status and

  2  program.

  3         (f)  Vocational accountability standards identified in

  4  s. 239.229.

  5         (g)  Other measures as identified by the Postsecondary

  6  Education Planning Commission and approved by the State Board

  7  of Community Colleges.

  8         (2)  By January 1, 1992, the State Board of Community

  9  Colleges shall submit to the Governor, the President of the

10  Senate, and the Speaker of the House of Representatives a plan

11  for addressing these issues.  The plan must provide a specific

12  timetable that identifies specific issues to be addressed each

13  year and must provide for full implementation by December 31,

14  1994. Beginning September 1, 1998 December 31, 1992, the State

15  Board of Community Colleges shall submit an annual interim

16  report, to coincide with the submission of the agency

17  strategic plan required by law, providing the results of

18  initiatives taken during the prior year and the initiatives

19  and related objective performance measures proposed for the

20  next year. The initial plan and each interim plan shall be

21  designed in consultation with staff of the Governor and the

22  Legislature.

23         (3)  Beginning January 1, 1993, The State Board of

24  Community Colleges shall address within the annual evaluation

25  of the performance of the executive director, and the boards

26  of trustees shall address within the annual evaluation of the

27  presidents, the achievement of the performance goals

28  established by the accountability process in the community

29  college accountability plan.

30         Section 10.  Subsections (4) through (14) of section

31  240.35, Florida Statutes, as amended by chapter 97-383, Laws


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  1  of Florida, are renumbered as subsections (5) through (15),

  2  respectively, paragraph (c) of present subsection (10) is

  3  amended, and a new subsection (4) is added to said section, to

  4  read:

  5         240.35  Student fees.--Unless otherwise provided, the

  6  provisions of this section apply only to fees charged for

  7  college credit instruction leading to an associate degree,

  8  including college-preparatory courses defined in s. 239.105.

  9         (4)  Any proprietor, owner, or worker of a company

10  whose business has been at least 50 percent negatively

11  financially impacted by the buy-out of property around Lake

12  Apopka by the State of Florida is exempt from the payment of

13  registration, matriculation, and laboratory fees.  A student

14  receiving a fee exemption in accordance with this subsection

15  must not have received compensation because of the buy-out,

16  must be designated a Florida resident for tuition purposes

17  pursuant to s. 240.1201, and must first have applied for and

18  been denied financial aid, pursuant to s. 240.404, which would

19  have provided, at a minimum, payment of all student fees. The

20  student is responsible for providing evidence to the

21  postsecondary education institution verifying that the

22  conditions of this subsection have been met, including support

23  documentation provided by the Department of Revenue.  The

24  student must be currently enrolled in, or begin coursework

25  within, a program area by fall semester 2000.  The exemption

26  is valid for a period of 4 years from the date that the

27  postsecondary education institution confirms that the

28  conditions of this subsection have been met.

29         (11)(10)

30         (c)  Up to 25 percent or $250,000, whichever is

31  greater, of the fees collected may be used to assist students


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  1  who demonstrate academic merit, who participate in athletics,

  2  public service, cultural arts, and other extracurricular

  3  programs as determined by the institution, or who are

  4  identified as members of a targeted gender or ethnic minority

  5  population.  The financial aid fee revenues allocated for

  6  athletic scholarships and fee exemptions provided pursuant to

  7  subsection (15) (14) for athletes shall be distributed

  8  equitably as required by s. 228.2001(3)(d).  A minimum of 50

  9  percent of the balance of these funds shall be used to provide

10  financial aid based on absolute need, and the remainder of the

11  funds shall be used for academic merit purposes and other

12  purposes approved by the district boards of trustees.  Such

13  other purposes shall include the payment of child care fees

14  for students with financial need.  The State Board of

15  Community Colleges shall develop criteria for making financial

16  aid awards.  Each college shall report annually to the

17  Department of Education on the criteria used to make awards,

18  the amount and number of awards for each criterion, and a

19  delineation of the distribution of such awards.  Awards which

20  are based on financial need shall be distributed in accordance

21  with a nationally recognized system of need analysis approved

22  by the State Board of Community Colleges. An award for

23  academic merit shall require a minimum overall grade point

24  average of 3.0 on a 4.0 scale or the equivalent for both

25  initial receipt of the award and renewal of the award.

26         Section 11.  Subsections (4) and (7) of section 240.36,

27  Florida Statutes, are amended to read:

28         240.36  Dr. Philip Benjamin Academic Improvement Trust

29  Fund for Community Colleges.--

30         (4)  Challenge grants shall be proportionately

31  allocated from the trust fund on the basis of matching each $4


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    1998 Legislature                     HB 4259, Second Engrossed



  1  of state funds with $6 of local or private funds. The matching

  2  funds shall come from contributions made after July 1, 1983,

  3  for the purposes of matching this grant.  To be eligible, a

  4  minimum of $4,500 must be raised from private sources, and

  5  such contributions must be in excess of the total average

  6  annual cash contributions made to the foundation at each

  7  community college in the 3 fiscal years before July 1, 1983.

  8         (7)(a)  The board of trustees of the community college

  9  and the State Board of Community Colleges are responsible for

10  determining the uses for the proceeds of their respective

11  trust funds.  Such uses of the proceeds shall be limited to

12  expenditure of the funds for:

13         1.  Scientific and technical equipment.

14         2.  Other activities that will benefit future students

15  as well as students currently enrolled at the community

16  college and that will improve the quality of education at the

17  community college or in the community college system.

18         3.  Scholarships, loans, or need-based grants, which

19  are the lowest priority for use of these funds.

20         (b)  If a community college includes scholarships,

21  loans, or need-based grants in its proposal, it shall create

22  an endowment in its academic improvement trust fund and use

23  the earnings of the endowment to provide scholarships, loans,

24  or need-based grants. in its proposal, it shall create an

25  endowment in its academic improvement trust fund and use the

26  earnings of the endowment to provide scholarships.  Such

27  scholarships must be program specific and require high

28  academic achievement for students to qualify for or retain the

29  scholarship. A scholarship program may be used for minority

30  recruitment but may not be used for athletic participants. The

31  board of trustees may award scholarships to students in


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  1  associate in arts programs and vocational programs. However,

  2  for vocational programs, the board of trustees must have

  3  designated the program as a program of emphasis for quality

  4  improvement, a designation that should be restricted to a

  5  limited number of programs at the community college.  In

  6  addition, the board of trustees must have adopted a specific

  7  plan that details how the community college will improve the

  8  quality of the program designated for emphasis and that

  9  includes quality measures and outcome measures.  Over a period

10  of time, the community college operating budget should show

11  additional financial commitment to the program of emphasis

12  above and beyond the average increases to other programs

13  offered by the community college.  Fundraising activities must

14  be specifically identified as being for the program of

15  emphasis or scholarship money.  The community college must

16  fully levy the amount for financial aid purposes provided by

17  s. 240.35(10) in addition to the tuition and matriculation fee

18  before any scholarship funds are awarded to the community

19  college as part of its approved request.

20         (b)(c)  Proposals for use of the trust fund shall be

21  submitted to the State Board of Community Colleges for

22  approval.  Any proposal not acted upon in 60 days shall be

23  considered not approved.

24         Section 12.  Subsection (5) of section 240.382, Florida

25  Statutes, is amended to read:

26         240.382  Establishment of child development training

27  centers at community colleges.--

28         (5)  In addition to revenues derived from child care

29  fees charged to parents and other external resources, each

30  child development training center may be funded by a portion

31  of funds from the student activity and service fee authorized


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  1  by s. 240.35(10)(9) and the capital improvement fee authorized

  2  by s. 240.35(14)(13). Community colleges are authorized to

  3  transfer funds as necessary from the college's general fund to

  4  support the operation of the child development training

  5  center.

  6         Section 13.  Subsection (2) of section 240.4097,

  7  Florida Statutes, is amended to read:

  8         240.4097  Florida Postsecondary Student Assistance

  9  Grant Program; eligibility for grants.--

10         (2)(a)  Florida postsecondary student assistance grants

11  through the State Student Financial Assistance Trust Fund may

12  be made only to full-time degree-seeking students who meet the

13  general requirements for student eligibility as provided in s.

14  240.404, except as otherwise provided in this section.  Such

15  grants shall be awarded for the amount of demonstrated unmet

16  need for tuition and fees and may not exceed a total of $1,500

17  per academic year, or as specified in the General

18  Appropriations Act, to any applicant.  A demonstrated unmet

19  need of less than $200 shall render the applicant ineligible

20  for a Florida postsecondary student assistance grant.

21  Recipients of such grants must have been accepted at a

22  postsecondary institution that is located in and chartered as

23  a domestic corporation by the state and that is:

24         1.  A private nursing diploma school approved by the

25  Florida Board of Nursing; or

26         2.  An institution either licensed by the State Board

27  of Independent Colleges and Universities or exempt from

28  licensure pursuant to s. 246.085(1)(a), excluding those

29  institutions the students of which are eligible to receive a

30  Florida private student assistance grant pursuant to s.

31  240.4095.


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  1

  2  No student may receive an award for more than the equivalent

  3  of 9 semesters or 14 quarters in a period of not more than 6

  4  consecutive years, except as otherwise provided in s.

  5  240.404(3).

  6         (b)  A student applying for a Florida postsecondary

  7  student assistance grant shall be required to apply for the

  8  Pell Grant. The Pell Grant entitlement shall be considered by

  9  the department when conducting an assessment of the financial

10  resources available to each student.

11         (c)  The criteria and procedure for establishing

12  standards of eligibility shall be determined by the

13  department.  The department is directed to establish a rating

14  system upon which to base the approval of grants, including

15  the use of a nationally recognized system of need analysis.

16  The system shall include a certification of acceptability by

17  the school of the applicant's choice.  Priority in the

18  distribution of grant moneys shall be given to students with

19  the lowest total family resources, as determined pursuant to

20  this subsection, taking into consideration the receipt of Pell

21  Grants and student contributions to educational costs.

22         Section 14.  Section 246.201, Florida Statutes, is

23  amended to read:

24         246.201  Legislative intent.--

25         (1)  Sections 246.201-246.231 shall provide for the

26  protection of the health, education, and welfare of the

27  citizens of Florida and shall facilitate and promote the

28  acquisition of a minimum satisfactory career, technical,

29  trade, and business education by all the citizens of this

30  state. There are presently many fine nonpublic schools

31  existing in this state, but there are some nonpublic schools


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  1  which do not generally offer those educational opportunities

  2  which the citizens of Florida deem essential.  The latter type

  3  of school also fails to contribute to the ultimate health,

  4  education, and welfare of the citizens of Florida.  It shall

  5  be in the interest of, and essential to, the public health and

  6  welfare that the state create the means whereby all nonpublic

  7  postsecondary career independent degree career education,

  8  technical, trade, and business schools as defined in s.

  9  246.203(1) shall satisfactorily meet minimum educational

10  standards and fair consumer practices.

11         (2)  A common practice in our society is to use

12  diplomas and degrees for many purposes.  Some of these

13  purposes are:  for employers to judge the qualifications of

14  prospective employees; for public and nonpublic professional

15  groups, vocational groups, educational agencies, governmental

16  agencies, and educational institutions to determine the

17  qualifications for admission to, and continuation of,

18  educational goals, occupational goals, professional

19  affiliations, or occupational affiliations; and for public and

20  professional assessment of the extent of competency of

21  individuals engaged in a wide range of activities within our

22  society.

23         (3)  Because of the common use of diplomas and degrees,

24  the minimum legal requirements provided by ss. 246.201-246.231

25  for the establishment and operation of nonpublic postsecondary

26  career independent degree career education, technical, trade,

27  and business schools shall protect the individual student from

28  deceptive, fraudulent, or substandard education; protect such

29  independent degree career education, technical, trade, and

30  business schools; and protect the citizens of Florida holding

31  diplomas or degrees.


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  1         (4)  Nothing contained herein is intended in any way,

  2  nor shall be construed, to regulate the stated purpose of an

  3  independent degree career education, technical, trade, and

  4  business school or to restrict any religious instruction or

  5  training in a nonpublic school. Any school or business

  6  regulated by the state or approved, certified, or regulated by

  7  the Federal Aviation Administration is hereby expressly exempt

  8  from ss. 246.201-246.231.  Nonprofit schools, owned,

  9  controlled, operated, and conducted by religious,

10  denominational, eleemosynary, or similar public institutions

11  exempt from property taxation under the laws of this state

12  shall be exempt from the provisions of ss. 246.201-246.231.

13  However, such schools may choose to apply for a license

14  hereunder, and, upon approval and issuance thereof, such

15  schools shall be subject to ss. 246.201-246.231.

16         Section 15.  Subsections (1) and (7) of section

17  246.203, Florida Statutes, are amended to read:

18         246.203  Definitions.--As used in ss. 246.201-246.231,

19  unless the context otherwise requires:

20         (1)  "School" means any nonpublic postsecondary

21  noncollegiate career educational institution, association,

22  corporation, person, partnership, or organization of any type

23  that:

24         (a)  Offers to provide or provides any postsecondary

25  program of instruction, course, or class through the student's

26  personal attendance, in the presence of an instructor, in a

27  classroom, clinical, or other practicum setting or through

28  correspondence or other distance learning; and

29         (b)  Represents, directly or by implication, that the

30  instruction will qualify the student for employment in any

31


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  1  occupation whose practice in this state does not require a

  2  degree, as defined in s. 246.021(5); and

  3         (c)  Receives remuneration from the student or any

  4  other source on the enrollment of a student or on the number

  5  of students enrolled; or

  6         (d)  Offers to award or awards a diploma, as defined in

  7  subsection (6), regardless of whether or not it engages in the

  8  activities described in paragraph (a), paragraph (b), or

  9  paragraph (c). nongovernmental, postsecondary, vocational,

10  technical, trade, or business noncollegiate educational

11  institution, organization program, home study course, or class

12  maintained or conducted in residence or through correspondence

13  by any person, partnership, association, organization, or

14  corporation for the purpose of offering instruction of any

15  kind leading to occupational objectives or of furnishing a

16  diploma, as defined in subsection (6), in business,

17  management, trade, technical, or other career education and

18  professional schools not otherwise regulated.  Nonpublic

19  colleges and universities which award a baccalaureate or

20  higher degree, and nonpublic junior colleges which award an

21  associate degree in liberal arts do not fall under the

22  authority granted in ss. 246.201-246.231 unless the college,

23  university, or junior college conducts, or seeks to conduct, a

24  program for which a diploma, as defined in subsection (6), is

25  to be awarded.  Any nonpublic college, university, or junior

26  college which conducts or seeks to conduct a diploma program

27  shall, for the purposes of ss. 246.201-246.231, be included in

28  the definition of "school." Schools offering only examination

29  preparation courses for which they do not award a diploma as

30  defined in subsection (6) do not fall under the authority

31  granted in ss. 246.201-246.231; nor does a nonprofit class


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  1  provided and operated entirely by an employer, a group of

  2  employers in related business or industry, or a labor union

  3  solely for its employees or prospective employees or members.

  4         (7)  "Board" means the State Board of Nonpublic Career

  5  Education Independent Postsecondary Vocational, Technical,

  6  Trade, and Business Schools.

  7         Section 16.  Subsections (1) and (2) of section

  8  246.205, Florida Statutes, are amended to read:

  9         246.205  State Board of Nonpublic Career Education

10  Independent Postsecondary Vocational, Technical, Trade, and

11  Business Schools.--

12         (1)  There shall be established in the Department of

13  Education a State Board of Nonpublic Career Education

14  Independent Postsecondary Vocational, Technical, Trade, and

15  Business Schools.  The board shall be assigned to the

16  Department of Education only for the purpose of payroll,

17  procurement, and related administrative functions which shall

18  be exercised by the head of the department.  The board shall

19  independently exercise the other powers, duties, and functions

20  prescribed by law.  The board shall include nine members,

21  appointed by the Governor as follows:

22         (a)  One from a business school;

23         (b)  One from a technical school;

24         (c)  One from a home study school;

25         (d)  One from a nonpublic school;

26         (e)  Four from business and industry; and

27         (f)  An administrator of vocational-technical education

28  from a public school district or community college.

29         (2)  Each of the members shall be appointed by the

30  Governor, subject to confirmation by the Senate, for a term of

31  3 years.  Of the original members appointed by the Governor,


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    1998 Legislature                     HB 4259, Second Engrossed



  1  three shall serve for terms of 1 year, three shall serve for

  2  terms of 2 years, and three shall serve for terms of 3 years.

  3  Of the appointive members from the nonpublic postsecondary

  4  career independent schools, each shall have occupied executive

  5  or managerial positions in a nonpublic postsecondary career an

  6  independent school in this state for at least 5 years.  All

  7  members shall be residents of this state.  In the event of a

  8  vacancy on the board caused other than by the expiration of a

  9  term, the Governor shall appoint a successor to serve the

10  unexpired term.

11         Section 17.  Subsection (1) and paragraph (e) of

12  subsection (2) of section 246.207, Florida Statutes, are

13  amended to read:

14         246.207  Powers and duties of board.--

15         (1)  The board shall:

16         (a)  Hold such meetings as are necessary to administer

17  efficiently the provisions of ss. 246.201-246.231.

18         (b)  Select annually a chairperson and a vice

19  chairperson.

20         (c)  Adopt and use an official seal in the

21  authentication of its acts.

22         (c)(d)  Make rules for its own government.

23         (d)(e)  Prescribe and recommend to the State Board of

24  Education rules as are required by ss. 246.201-246.231 or as

25  it may find necessary to aid in carrying out the objectives

26  and purposes of ss. 246.201-246.231.

27         (e)(f)  Administer ss. 246.201-246.231 and execute such

28  rules adopted pursuant thereto by the State Board of Education

29  for the establishment and operation of nonpublic postsecondary

30  career independent schools as defined in s. 246.203(1).

31


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  1         (f)(g)  Appoint, on the recommendation of its

  2  chairperson, executives, deputies, clerks, and employees of

  3  the board.

  4         (g)(h)  Maintain a record of its proceedings.

  5         (h)(i)  Cooperate with other state and federal agencies

  6  in administering ss. 246.201-246.231.

  7         (i)(j)  Prepare an annual budget.

  8         (j)(k)  Transmit all fees, donations, and other

  9  receipts of money to the Institutional Assessment Trust Fund

10  State Treasurer to be deposited in the General Revenue Fund.

11         (k)(l)  Transmit to the Governor, the Speaker of the

12  House of Representatives, the President of the Senate, the

13  minority leader of the Senate, and the minority leader of the

14  House of Representatives on July 1, 1987, and each succeeding

15  year an annual report which shall include, but not be limited

16  to:

17         1.  A detailed accounting of all funds received and

18  expended.

19         2.  The number of complaints received and investigated,

20  by type.

21         3.  The number of findings of probable cause.

22         4.  A description of disciplinary actions taken, by

23  statutory classification.

24         5.  A description of all administrative hearings and

25  court actions.

26         6.  A description of the board's major activities

27  during the previous year.

28         (l)(m)  Assure that no school that has met board

29  requirements established by law or rule be made to operate

30  without a current license due to scheduling of board meetings

31  or application procedures for license renewal.


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  1         (m)(n)  Cause to be investigated criminal justice

  2  information, as defined in s. 943.045, for each owner,

  3  administrator, and agent employed by a school applying for

  4  licensure or renewal of licensure.

  5         (n)(o)  Serve as a central agency for collection and

  6  distribution of current information regarding institutions

  7  licensed by the board.

  8         1.  The data collected by the board shall include

  9  information relating to the school administration, calendar

10  system, admissions requirements, student costs and financial

11  obligations, financial aid information, refund policy,

12  placement services, number of full-time and part-time faculty,

13  student enrollment and demographic figures, programs, and

14  off-campus programs.  Other information shall be collected in

15  response to specific needs or inquiries.  Financial

16  information of a strictly proprietary, commercial nature is

17  excluded from this requirement.

18         2.  The data collected by the board must also include

19  the data for the career education program evaluation reports

20  required by s. 239.233 for each school that chooses to provide

21  public information under s. 239.245.

22         3.  The board shall provide to each participating

23  institution annually the format, definitions, and instructions

24  for submitting the required information.

25         4.  The data submitted by each institution shall be

26  accompanied by a letter of certification signed by the chief

27  administrative officer of the institution, affirming that the

28  information submitted is accurate.

29         5.  A summary of the data collected by the board shall

30  be included in the annual report to the Governor, the Speaker

31  of the House of Representatives and the President of the


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    1998 Legislature                     HB 4259, Second Engrossed



  1  Senate, the minority leader of the Senate, and the minority

  2  leader of the House of Representatives.  The information

  3  collected by the board may also be used by the Department of

  4  Education for such purposes as statewide master planning,

  5  state financial aid programs, and publishing directories, by

  6  the Legislature, and to respond to consumer inquiries received

  7  by the board.

  8         (p)  Publish and index all policies and agency

  9  statements. If a policy or agency statement meets the criteria

10  of a rule, as defined in s. 120.52, the board shall adopt it

11  as a rule.

12         (o)(q)  Establish and publicize the procedures for

13  receiving and responding to complaints from students, faculty,

14  and others about schools or programs licensed by the board and

15  shall keep records of such complaints in order to determine

16  their frequency and nature for specific institutions of higher

17  education.  With regard to any written complaint alleging a

18  violation of any provision of ss. 246.201-246.231 or any rule

19  promulgated pursuant thereto, the board shall periodically

20  notify, in writing, the person who filed the complaint of the

21  status of the investigation, whether probable cause has been

22  found, and the status of any administrative action, civil

23  action, or appellate action, and if the board has found that

24  probable cause exists, it shall notify, in writing, the party

25  complained against of the results of the investigation and

26  disposition of the complaint.  The findings of the probable

27  cause panel, if a panel is established, shall not be disclosed

28  until the information is no longer confidential.

29         (2)  The board may:

30         (e)  Issue a license to any school subject to ss.

31  246.201-246.231 which is exempted excluded from the licensing


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    1998 Legislature                     HB 4259, Second Engrossed



  1  and regulatory requirements of ss. 246.201-246.231, upon

  2  voluntary application for such license and upon payment of the

  3  appropriate fee as set forth in s. 246.219.

  4         Section 18.  Section 246.213, Florida Statutes, is

  5  amended to read:

  6         246.213  Power of State Board of Education.--

  7         (1)  The State Board of Education, acting on the

  8  recommendation of the State Board of Nonpublic Career

  9  Education Independent Postsecondary Vocational, Technical,

10  Trade, and Business Schools, shall adopt such minimum

11  standards and rules as are required for the administration of

12  ss. 246.201-246.231.

13         (2)(a)  The minimum educational standards for the

14  licensing of schools shall include, but not be limited to:

15  name of school, purpose, administrative organization,

16  educational program and curricula, finances, financial

17  stability, faculty, library, student personnel services,

18  physical plant and facilities, publications, and disclosure

19  statements about the status of the institution in relation to

20  professional certification and licensure.

21         (b)  Rules of the State Board of Education shall

22  require that nonpublic schools administer an entry-level test

23  of basic skills to each student who enrolls in a nondegree

24  program of at least 450 clock hours, or the credit hour

25  equivalent, which purports to prepare such student for

26  employment. The State Board of Nonpublic Career Education

27  Independent Postsecondary Vocational, Technical, Trade, and

28  Business Schools shall designate examinations authorized for

29  use for entry-level testing purposes. State Board of Education

30  rules shall require that applicable schools provide students

31  who are deemed to lack a minimal level of basic skills with a


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  1  structured program of basic skills instruction. No student

  2  shall be granted a diploma, as defined in s. 246.203, until he

  3  or she has demonstrated mastery of basic skills. Exceptional

  4  students, as defined in s. 228.041, may be exempted from the

  5  provisions of this paragraph. The State Board of Education

  6  shall identify means through which students who are capable of

  7  demonstrating mastery of basic skills may be exempted from the

  8  provisions of this paragraph.

  9         (c)  The State Board of Nonpublic Career Education

10  Independent Postsecondary Vocational, Technical, Trade, and

11  Business Schools may request that schools within its

12  jurisdiction provide the board all documents associated with

13  institutional accreditation.  The board shall solicit from

14  schools which provide such documents only such additional

15  information undisclosed in the accreditation documents

16  provided.  The board may conduct a comprehensive study of a

17  school that fails to provide all documents associated with its

18  institutional accreditation.  The cost of such study shall be

19  borne by the institution. Standards imposed by the board shall

20  not be constrained in quality or quantity to those imposed by

21  the respective accrediting body.

22         (d)  The State Board of Nonpublic Career Education

23  Independent Postsecondary Vocational, Technical, Trade, and

24  Business Schools shall recommend to the State Board of

25  Education minimum placement standards for institutions that

26  conduct programs that prepare students for employment.

27         (3)  The minimum requirements for the licensing of

28  agents shall include:  name, residential and business

29  addresses, background training, institution or institutions to

30  be represented, and demonstrated knowledge of statutes and

31  rules related to the authority granted to agents and the


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  1  limitations imposed upon such authority.  No employee of a

  2  nonpublic school shall solicit prospective students for

  3  enrollment in such school until that employee is licensed by

  4  the State Board of Nonpublic Career Education Independent

  5  Postsecondary Vocational, Technical, Trade, and Business

  6  Schools as an agent.

  7         (4)  The State Board of Nonpublic Career Education

  8  Independent Postsecondary Vocational, Technical, Trade, and

  9  Business Schools shall adopt criteria for specialized

10  associate degrees, diplomas, certificates, or other

11  educational credentials that will be recognized in licensed

12  schools.  The State Board of Nonpublic Career Education

13  Independent Postsecondary Vocational, Technical, Trade, and

14  Business Schools shall adopt a common definition for each

15  credential.  To determine the level of a nonpublic an

16  independent institution's vocational program or to establish

17  criteria for a specialized degree, the board shall use

18  procedures developed pursuant to s. 239.205, which requires

19  the Department of Education to determine the level of each

20  public degree career education program.

21         Section 19.  Section 246.215, Florida Statutes, is

22  amended to read:

23         246.215  License required.--

24         (1)  No nonpublic postsecondary career independent

25  school required to be licensed pursuant to ss. 246.201-246.231

26  shall be operated or established within the state until such

27  school makes application and obtains a license or

28  authorization from the board.  Each nonpublic school that

29  seeks licensure shall first submit articles of incorporation

30  to the Department of State.  After the Department of State

31  approves such articles and verifies that the articles indicate


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  1  the corporation is a postsecondary school within the meaning

  2  and intent of s. 246.203, the corporation shall apply for

  3  licensure by the board within 60 days of approval of the

  4  articles.  Department of State approval of the articles of

  5  incorporation shall not constitute authorization to operate

  6  the nonpublic school.  The Department of State shall

  7  immediately transmit approved articles of incorporation for

  8  nonpublic schools to the board.

  9         (2)  No agent shall solicit any prospective student for

10  enrollment in a nonpublic school until both the agent and the

11  school are appropriately licensed or otherwise authorized by

12  the board.

13         (3)  No nonpublic postsecondary career independent

14  school required to be licensed pursuant to ss. 246.201-246.231

15  shall advertise in any manner until such school is granted an

16  appropriate license by the board, nor shall any licensed

17  school advertise in any manner while such school is under an

18  injunction against operating, soliciting students, or offering

19  diplomas.

20         (4)  No license granted by the board shall be

21  transferable to another nonpublic postsecondary career

22  independent school or to another agent, nor shall school

23  licensure transfer upon a change in ownership of the

24  institution.

25         (5)  Each license granted by the board shall delineate

26  the specific nondegree programs that the nonpublic school is

27  authorized to offer.  No such school shall conduct a program

28  unless express authority is granted in its license.

29         (6)  A diploma program offered by a nonpublic junior

30  college, college, or university must be licensed by the board,

31  notwithstanding the fact that such institution is concurrently


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    ENROLLED

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  1  subject to the jurisdiction of the State Board of Independent

  2  Colleges and Universities, if such program does the following:

  3         (a)  The program qualifies a student for employment or

  4  engagement in an occupation whose practice in this state does

  5  not require a degree.

  6         (b)  The program awards a diploma, as defined in s.

  7  246.203(6), for successful completion, including any program

  8  that is organized to give students an option of exiting at a

  9  specified point and receiving a diploma, or continuing and

10  receiving a degree, as defined in s. 246.021(5).

11         Section 20.  Section 246.216, Florida Statutes, is

12  created to read:

13         246.216  Exemption from licensure.--

14         (1)  A person or entity which otherwise fits the

15  definition of school in s. 246.203(1) shall be exempt from

16  licensure if it meets the criteria specified in this section

17  and applies to the board for a statement of exemption. The

18  board shall issue a statement of exemption if it determines,

19  based on all available information, that the applicant meets

20  the following criteria:

21         (a)  The entity is a church or religious organization

22  whose programs of instruction include:

23         1.  A religious modifier in the title of the program,

24  immediately preceding the name of the occupation to which the

25  instruction relates, and in the title of the diploma.

26         2.  No representation, directly or by implication, that

27  individuals who successfully complete the program will be

28  qualified to be employed in the field to which the training

29  relates by an employer other than a church or religious

30  organization.

31


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  1         3.  No students who receive state or federal financial

  2  aid to pursue the program;

  3         (b)  The person or entity is regulated by the Federal

  4  Aviation Administration, another agency of the Federal

  5  Government, or an agency of the state whose regulatory laws

  6  are similar in nature and purpose to those of the board and

  7  require minimum educational standards, for at least

  8  curriculum, instructors, and academic progress and provide

  9  protection against fraudulent, deceptive, and substandard

10  education practices;

11         (c)  The person or entity offers only examination

12  preparation courses provided that:

13         1.  A diploma as defined in s. 246.203(6) is not

14  awarded.

15         2.  The courses do not include state licensing

16  examinations in occupations for which state laws do not

17  require a licensee to have a bachelor's degree or higher

18  academic or professional degree;

19         (d)  The person or entity is:

20         1.  An employer who offers training and trains only its

21  own bona fide employees;

22         2.  A trade or professional association or a group of

23  employers in the same or related business who in writing agree

24  to offer training and to train only individuals who are bona

25  fide employees of an employer who is a member of the

26  association or a party to the written agreement; or

27         3.  An independent contractor engaged by any of the

28  foregoing by written contract to provide the training on its

29  behalf exclusively to individuals who are selected by the

30  employer, association, or group which engaged the contractor

31  and who are bona fide employees thereof.


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  1

  2  For purposes of this paragraph, a bona fide employee is an

  3  individual who works for salary or wages paid by the employer

  4  in at least the minimum amount required by law;

  5         (e)  The entity is a labor union or group of labor

  6  unions which offers training to, and trains only, individuals

  7  who are dues paying members of a participating labor union; or

  8  the person or entity is an independent contractor engaged by

  9  the labor union or group of labor unions, by written contract,

10  to provide the training on its behalf exclusively to

11  individuals who are selected by the labor union or group of

12  labor unions which engaged the contractor and who are dues

13  paying members thereof;

14         (f)  The person or entity offers only continuing

15  education programs to individuals who engage in an occupation

16  or profession whose practitioners are subject to licensure,

17  certification, or registration by a state agency which

18  recognizes the programs for continuing education purposes and

19  provides a written statement of such recognition; or

20         (g)  The person or entity offers a program of

21  instruction whose objective is not occupational, but is

22  avocational and only for personal enrichment and which:

23         1.  Prior to enrollment, gives to each enrollee, and

24  maintains a record copy of, a written statement which states

25  substantially the following:  "This program is not designed or

26  intended to qualify its participants and graduates for

27  employment in (the field to which the training pertains).  It

28  is intended solely for the avocation, personal enrichment, and

29  enjoyment of its participants."

30         2.  Makes no other verbal or written statements which

31  negate the written statement required in subparagraph 1. by


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  1  stating or implying that persons who enroll in or complete the

  2  program have any more substantial likelihood of getting

  3  employment in the field to which the training pertains than

  4  persons who do not.

  5         3.  Maintains and makes available to the board, upon

  6  request, records which demonstrate that each enrollee received

  7  the statement required by subparagraph 1. prior to

  8  enrollment.

  9

10  To be eligible for the statement of exemption, the applicant

11  must maintain records documenting its qualification for

12  exemption. A person or entity which is exempt pursuant to this

13  subsection and which is also a licensee for programs which do

14  not qualify for exemption may not include in the catalog,

15  contract, or advertising relating to its licensed program any

16  reference to its unlicensed programs.  This restriction does

17  not apply to a licensee which voluntarily becomes licensed to

18  offer programs which would otherwise qualify for exemption.

19         (2)  The board shall revoke a statement of exemption if

20  it determines, based on all available information, that the

21  entity does not meet the criteria required in subsection (1)

22  because of the following:

23         (a)  There has been a material change in circumstances

24  or in the law;

25         (b)  The statement was erroneously issued as a result

26  of false or misleading information provided by the applicant

27  or other source;

28         (c)  There was a misunderstanding by the board of the

29  information which it had considered; or

30         (d)  New information has been received.

31


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  1  Probable cause proceedings do not apply to the foregoing board

  2  decisions.

  3         (3)  The board may invoke the remedies provided in s.

  4  246.227 when no application for a statement of exemption is

  5  pending; in conjunction with, or subsequent to, its notice of

  6  denial of an application; or in conjunction with, or

  7  subsequent to, its notice of revocation. The filing of a civil

  8  action pursuant to s. 246.227 shall have the effect of

  9  suspending administrative proceedings under this section

10  unless the board takes a voluntary dismissal without prejudice

11  in a judicial case. An order of the court which determines or

12  renders moot an issue presented in suspended administrative

13  proceedings shall be grounds for dismissal of the

14  administrative proceeding as to that issue.

15         Section 21.  Subsection (1) of section 246.219, Florida

16  Statutes, is amended to read:

17         246.219  License fees.--

18         (1)  Each initial application for a license to operate

19  a nonpublic postsecondary career school shall be accompanied

20  by a license fee of not less than $500, and each application

21  for the renewal of such license shall be accompanied by an

22  annual license fee of at least $300, provided that the fee for

23  a biennial license shall be at least $600.  A fee shall be

24  charged for a supplementary application for the approval of

25  any additional field or course of instruction.  Such fees

26  shall be delineated, by rule, by the board.

27         Section 22.  Section 246.220, Florida Statutes, is

28  amended to read:

29         246.220  Surety bonds or insurance.--Surety bonds or

30  insurance shall not be required of any school licensed by the

31  State Board of Nonpublic Career Education Independent


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    ENROLLED

    1998 Legislature                     HB 4259, Second Engrossed



  1  Postsecondary Vocational, Technical, Trade, and Business

  2  Schools, except as may be required by the board to insure the

  3  train-out of projected or currently enrolled students,

  4  issuance of refunds to projected or currently enrolled

  5  students, payment of liabilities to the Student Protection

  6  Fund, or for the retrieval or safekeeping of student records.

  7         Section 23.  Subsections (1) and (4) of section

  8  246.2265, Florida Statutes, are amended to read:

  9         246.2265  Additional regulatory powers while

10  disciplinary proceedings are pending; cease and desist

11  orders.--

12         (1)  The board may, in conjunction with an

13  administrative complaint or notice of denial of licensure,

14  issue cease and desist orders for the purpose of protecting

15  the health, safety, and welfare of students, prospective

16  students, and the general public.  Such orders may be

17  mandatory or prohibitory in form and may order a nonpublic an

18  independent postsecondary career institution, officer,

19  employee, or agent to:

20         (a)  Cease and desist from specified conduct which

21  relates to acts or omissions stated in the administrative

22  complaint or notice of denial of licensure; or

23         (b)  Cease and desist from failing to engage in

24  specified conduct which is necessary to achieve or preserve

25  the regulatory purposes of ss. 246.201-246.231.

26         (4)  The executive director of the board, with the

27  approval of the chair of the board, may issue and deliver a

28  cease and desist order to a nonpublic an independent

29  postsecondary career institution.

30         Section 24.  Subsections (2) and (3) of section

31  246.227, Florida Statutes, are amended to read:


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    ENROLLED

    1998 Legislature                     HB 4259, Second Engrossed



  1         246.227  Injunctive relief; unlicensed operation of a

  2  school; cease and desist notice; civil penalty.--

  3         (2)  An unlicensed nonpublic independent postsecondary

  4  career institution required to be licensed pursuant to ss.

  5  246.201-246.231 that advertises or causes advertisements to be

  6  made public through which students are solicited for

  7  enrollment or are offered diplomas shall be in violation of

  8  the provisions of ss. 246.201-246.231.  A licensed nonpublic

  9  independent postsecondary career institution that is under

10  temporary or permanent injunction against operating or

11  offering diplomas that advertises or causes advertisements to

12  be made public through which students are solicited for

13  enrollment or are offered diplomas shall be in violation of

14  such injunctive order upon presentation to the court of the

15  advertisement.

16         (3)  The executive director of the board, with the

17  approval of the chair of the board, may issue and deliver a

18  cease and desist order to any nonpublic independent

19  postsecondary career institution or agent required to be

20  licensed pursuant to ss. 246.201-246.231 that is not so

21  licensed.  The board may file, in the name of the state, a

22  proceeding which seeks issuance of an injunction against any

23  person in violation of any provision of such order.

24         Section 25.  Subsection (1) of section 246.31, Florida

25  Statutes, is amended to read:

26         246.31  Institutional Assessment Trust Fund.--

27         (1)  There is created an Institutional Assessment Trust

28  Fund to be administered by the Department of Education

29  pursuant to this section and rules of the State Board of

30  Education.  The trust fund shall consist of all fees and fines

31  imposed upon nonpublic colleges and schools pursuant to this


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    ENROLLED

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  1  chapter, including all fees collected from nonpublic colleges

  2  for participation in the common course designation and

  3  numbering system.  The department shall maintain separate

  4  revenue accounts for the State Board of Independent Colleges

  5  and Universities; the State Board of Nonpublic Career

  6  Education Independent Postsecondary Vocational, Technical,

  7  Trade, and Business Schools; and the Department of Education.

  8         Section 26.  Subsection (6) of section 20.15, Florida

  9  Statutes, is amended to read:

10         20.15  Department of Education.--There is created a

11  Department of Education.

12         (6)  COUNCILS AND COMMITTEES.--Notwithstanding anything

13  contained in law to the contrary, the Commissioner of

14  Education shall appoint all members of all councils and

15  committees of the Department of Education, except the Board of

16  Regents, the State Board of Community Colleges, the community

17  college district boards of trustees, the Postsecondary

18  Education Planning Commission, the Education Practices

19  Commission, the Education Standards Commission, the State

20  Board of Independent Colleges and Universities, the Florida

21  Commission on Education Reform and Accountability, and the

22  State Board of Nonpublic Career Education Independent

23  Postsecondary Vocational, Technical, Trade, and Business

24  Schools.

25         Section 27.  Subsection (5) of section 240.40204,

26  Florida Statutes, is amended to read:

27         240.40204  Florida Bright Futures Scholarship Program;

28  eligible postsecondary education institutions.--A student is

29  eligible for an award or the renewal of an award from the

30  Florida Bright Futures Scholarship Program if the student

31  meets the requirements for the program as described in this


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    ENROLLED

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  1  act and is enrolled in a postsecondary education institution

  2  that meets the description in any one of the following

  3  subsections:

  4         (5)  A Florida independent postsecondary education

  5  institution that is licensed by the State Board of Nonpublic

  6  Career Education Independent Postsecondary Vocational,

  7  Technical, Trade, or Business Schools and which:

  8         (a)  Has a program completion and placement rate of at

  9  least the rate required by the current Florida Statutes, the

10  Florida Administrative Code, or the Department of Education

11  for an institution at its level; and

12         (b)  Shows evidence of sound financial condition; and

13  either:

14         1.  Is accredited at the institutional level by an

15  accrediting agency recognized by the United States Department

16  of Education and has operated in the state for at least 3

17  years during which there has been no complaint for which

18  probable cause has been found; or

19         2.  Has operated in Florida for 5 years during which

20  there has been no complaint for which probable cause has been

21  found.

22         Section 28.  Subsection (3) of section 246.011, Florida

23  Statutes, is amended to read:

24         246.011  Purpose.--

25         (3)  It is the intent of the Legislature that a

26  nonpublic college which offers both degrees and vocational

27  certificates or diplomas shall be subject to the rules of the

28  State Board of Independent Colleges and Universities as

29  provided by ss. 246.011-246.151 and the State Board of

30  Nonpublic Career Education Independent Postsecondary

31


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    ENROLLED

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  1  Vocational, Technical, Trade, and Business Schools as provided

  2  by ss. 246.201-246.231.

  3         Section 29.  Subsection (3) of section 246.081, Florida

  4  Statutes, is amended to read:

  5         246.081  License, certificate of exemption, or

  6  authorization required; exceptions.--

  7         (3)  No nonpublic college shall continue to conduct or

  8  begin to conduct any diploma program, as defined in s.

  9  246.203, unless the college applies for and obtains from the

10  State Board of Nonpublic Career Education Independent

11  Postsecondary Vocational, Technical, Trade, and Business

12  Schools a license or authorization for such diploma program in

13  the manner and form prescribed by the State Board of Nonpublic

14  Career Education Independent Postsecondary Vocational,

15  Technical, Trade, and Business Schools.

16         Section 30.  Subsection (3) of section 246.085, Florida

17  Statutes, is amended to read:

18         246.085  Certificate of exemption.--

19         (3)  Any college which holds a certificate of exemption

20  and which conducts any diploma program, as defined in s.

21  246.203, shall be subject to licensure of such diploma program

22  by the State Board of Nonpublic Career Education Independent

23  Postsecondary Vocational, Technical, Trade, and Business

24  Schools.

25         Section 31.  Subsection (3) of section 246.091, Florida

26  Statutes, is amended to read:

27         246.091  License period and renewal.--

28         (3)  A licensed college which seeks to conduct any

29  diploma program, as defined in s. 246.203, shall apply to the

30  State Board of Nonpublic Career Education Independent

31


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    ENROLLED

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  1  Postsecondary Vocational, Technical, Trade, and Business

  2  Schools for licensure for such program.

  3         Section 32.  Subsection (1) of section 246.111, Florida

  4  Statutes, is amended to read:

  5         246.111  Denial, probation, or revocation of license or

  6  certificate of exemption.--

  7         (1)  Any temporary license, provisional license, or

  8  regular license, agent's license, certificate of exemption, or

  9  other authorization required under the provisions of ss.

10  246.011-246.151 may be denied, placed on probation, or revoked

11  by the board.  A college which has its certificate of

12  exemption revoked shall become subject to the licensing

13  provisions of the board.  The board shall promulgate rules for

14  these actions. Placement of a college on probation for a

15  period of time and subject to such conditions as the board may

16  specify may also carry the imposition of an administrative

17  fine not to exceed $5,000. Such fine shall be deposited into

18  the Institutional Assessment Trust Fund.  Disciplinary action

19  undertaken pursuant to this section against a college that is

20  also licensed by the State Board of Nonpublic Career Education

21  Independent Postsecondary Vocational, Technical, Trade, and

22  Business Schools shall prompt disciplinary proceedings

23  pursuant to s. 246.226.

24         Section 33.  Subsection (1) of section 246.50, Florida

25  Statutes, is amended to read:

26         246.50  Certified Teacher-Aide Welfare Transition

27  Program; participation by independent postsecondary

28  schools.--An independent postsecondary school may participate

29  in the Certified Teacher-Aide Welfare Transition Program and

30  may receive incentives for successful performance from the

31  Performance Based Incentive Funding Program if:


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  1         (1)  The school is accredited by the Southern

  2  Association of Colleges and Schools and licensed by the State

  3  Board of Nonpublic Career Education Independent Postsecondary

  4  Vocational, Technical, Trade, and Business Schools;

  5         Section 34.  Section 455.2125, Florida Statutes, is

  6  amended to read:

  7         455.2125  Consultation with postsecondary education

  8  boards prior to adoption of changes to training

  9  requirements.--Any state agency or board that has jurisdiction

10  over the regulation of a profession or occupation shall

11  consult with the State Board of Independent Colleges and

12  Universities; the State Board of Nonpublic Career Education

13  Independent Postsecondary Vocational, Technical, Trade, and

14  Business Schools; the Board of Regents; and the State Board of

15  Community Colleges prior to adopting any changes to training

16  requirements relating to entry into the profession or

17  occupation. This consultation must allow the educational board

18  to provide advice regarding the impact of the proposed changes

19  in terms of the length of time necessary to complete the

20  training program and the fiscal impact of the changes. The

21  educational board must be consulted only when an institution

22  offering the training program falls under its jurisdiction.

23         Section 35.  Section 455.554, Florida Statutes, is

24  amended to read:

25         455.554  Consultation with postsecondary education

26  boards prior to adoption of changes to training

27  requirements.--Any state agency or board that has jurisdiction

28  over the regulation of a profession or occupation shall

29  consult with the State Board of Independent Colleges and

30  Universities; the State Board of Nonpublic Career Education

31  Independent Postsecondary Vocational, Technical, Trade, and


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  1  Business Schools; the Board of Regents; and the State Board of

  2  Community Colleges prior to adopting any changes to training

  3  requirements relating to entry into the profession or

  4  occupation. This consultation must allow the educational board

  5  to provide advice regarding the impact of the proposed changes

  6  in terms of the length of time necessary to complete the

  7  training program and the fiscal impact of the changes. The

  8  educational board must be consulted only when an institution

  9  offering the training program falls under its jurisdiction.

10         Section 36.  Subsection (8) of section 467.009, Florida

11  Statutes, is amended to read:

12         467.009  Midwifery programs; education and training

13  requirements.--

14         (8)  Nonpublic educational institutions that conduct

15  approved midwifery programs shall be accredited by a member of

16  the Commission on Recognition of Postsecondary Accreditation

17  and shall be licensed by the State Board of Nonpublic Career

18  Education Independent Postsecondary Vocational, Technical,

19  Trade, and Business Schools.

20         Section 37.  Section 476.178, Florida Statutes, is

21  amended to read:

22         476.178  Schools of barbering; licensure.--No private

23  school of barbering shall be permitted to operate without a

24  license issued by the State Board of Nonpublic Career

25  Education Independent Postsecondary Vocational, Technical,

26  Trade, and Business Schools pursuant to chapter 246.  However,

27  this section shall not be construed to prevent certification

28  by the Department of Education of barber training programs

29  within the public school system or to prevent government

30  operation of any other program of barbering in this state.

31


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    ENROLLED

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  1         Section 38.  Section 477.023, Florida Statutes, is

  2  amended to read:

  3         477.023  Schools of cosmetology; licensure.--No private

  4  school of cosmetology shall be permitted to operate without a

  5  license issued by the State Board of Nonpublic Career

  6  Education Independent Postsecondary Vocational, Technical,

  7  Trade, and Business Schools pursuant to chapter 246.  However,

  8  nothing herein shall be construed to prevent certification by

  9  the Department of Education of cosmetology training programs

10  within the public school system or to prevent government

11  operation of any other program of cosmetology in this state.

12         Section 39.  Section 488.01, Florida Statutes, is

13  amended to read:

14         488.01  License to engage in business of operating a

15  driver's school required.--The Department of Highway Safety

16  and Motor Vehicles shall oversee and license all commercial

17  driver's schools except truck driving schools.  All commercial

18  truck driving schools shall be required to be licensed

19  pursuant to chapter 246, and additionally shall be subject to

20  the provisions of ss. 488.04 and 488.05.  No person, group,

21  organization, institution, business entity, or corporate

22  entity may engage in the business of operating a driver's

23  school without first obtaining a license therefor from the

24  Department of Highway Safety and Motor Vehicles pursuant to

25  this chapter or from the State Board of Nonpublic Career

26  Education Independent Postsecondary Vocational, Technical,

27  Trade, and Business Schools pursuant to chapter 246.

28         Section 40.  Effective July 1, 1999, subsection (1) and

29  paragraph (a) of subsection (6) of section 232.246, Florida

30  Statutes, are amended to read:

31


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    ENROLLED

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  1         232.246  General requirements for high school

  2  graduation.--

  3         (1)  Graduation requires successful completion of

  4  either a minimum of 24 academic credits in grades 9 through 12

  5  or an International Baccalaureate curriculum. The 24 credits

  6  shall be distributed as follows:

  7         (a)  Four credits in English, with major concentration

  8  in composition and literature.

  9         (b)  Three credits in mathematics.  Effective for

10  students entering the 9th grade in the 1997-1998 school year

11  and thereafter, one of these credits must be Algebra I, a

12  series of courses equivalent to Algebra I, or a higher-level

13  mathematics course.

14         (c)  Three credits in science, two of which must have a

15  laboratory component. The State Board of Education may grant

16  an annual waiver of the laboratory requirement to a school

17  district that certifies that its laboratory facilities are

18  inadequate, provided the district submits a capital outlay

19  plan to provide adequate facilities and makes the funding of

20  this plan a priority of the school board.

21         (d)  One credit in American history.

22         (e)  One credit in world history, including a

23  comparative study of the history, doctrines, and objectives of

24  all major political systems.

25         (f)  One-half credit in economics, including a

26  comparative study of the history, doctrines, and objectives of

27  all major economic systems.  The Florida Council on Economic

28  Education shall provide technical assistance to the department

29  and local school boards in developing curriculum materials for

30  the study of economics.

31


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  1         (g)  One-half credit in American government, including

  2  study of the Constitution of the United States.  For students

  3  entering the 9th grade in the 1997-1998 school year and

  4  thereafter, the study of Florida government, including study

  5  of the State Constitution, the three branches of state

  6  government, and municipal and county government, shall be

  7  included as part of the required study of American government.

  8         (h)1.  One credit in practical arts career education or

  9  exploratory career education.  Any vocational course as

10  defined in s. 228.041(22) may be taken to satisfy the high

11  school graduation requirement for one credit in practical arts

12  or exploratory career education provided in this subparagraph;

13         2.  One credit in performing fine arts to be selected

14  from music, dance, drama, painting, or sculpture.  A course in

15  any art form, in addition to painting or sculpture, that

16  requires manual dexterity, or a course in speech and debate,

17  may be taken to satisfy the high school graduation requirement

18  for one credit in performing arts pursuant to this

19  subparagraph; or

20         3.  One-half credit each in practical arts career

21  education or exploratory career education and performing fine

22  arts, as defined in this paragraph.

23

24  Such credit for practical arts career education or exploratory

25  career education or for performing fine arts shall be made

26  available in the 9th grade, and students shall be scheduled

27  into a 9th grade course as a priority.

28         (i)  One-half credit in life management skills to

29  include consumer education, positive emotional development,

30  nutrition, prevention of human immunodeficiency virus

31  infection and acquired immune deficiency syndrome and other


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  1  sexually transmissible diseases, benefits of sexual abstinence

  2  and consequences of teenage pregnancy, information and

  3  instruction on breast cancer detection and breast

  4  self-examination, cardiopulmonary resuscitation, drug

  5  education, and the hazards of smoking.  Such credit shall be

  6  given for a course to be taken by all students in either the

  7  9th or 10th grade.

  8         (j)  One One-half credit in physical education to

  9  include assessment, improvement, and maintenance of personal

10  fitness.  Participation in an interscholastic sport, whether

11  at the freshman, junior varsity, or varsity level, for two a

12  full seasons season, shall satisfy the one-credit one-half

13  credit requirement in physical education if the student passes

14  a competency test on personal fitness with a score of "C" or

15  better. The competency test on personal fitness must be

16  developed by the Department of Education. A school board may

17  not require that the one credit in physical education be taken

18  during the 9th grade year.

19         (k)  Eight and one-half Nine elective credits.

20

21  School boards may award a maximum of one-half credit in social

22  studies and one-half elective credit for student completion of

23  nonpaid voluntary community or school service work.  Students

24  choosing this option must complete a minimum of 75 hours of

25  service in order to earn the one-half credit in either

26  category of instruction.  Credit may not be earned for service

27  provided as a result of court action.  School boards that

28  approve the award of credit for student volunteer service

29  shall develop guidelines regarding the award of the credit,

30  and school principals are responsible for approving specific

31  volunteer activities. A course designated in the Course Code


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  1  Directory as grade 9 through grade 12 which is taken below the

  2  9th grade may be used to satisfy high school graduation

  3  requirements or Florida Academic Scholars award Scholar's

  4  Certificate Program requirements as specified in a district's

  5  pupil progression plan.

  6         (6)  The Legislature recognizes that adult learners are

  7  unique in situation and needs.  The following graduation

  8  requirements are therefore instituted for students enrolled in

  9  adult general education in accordance with s. 239.301 in

10  pursuit of a high school diploma:

11         (a)  The one one-half credit in physical education

12  required for graduation, pursuant to subsection (1), is not

13  required for graduation and shall be substituted with elective

14  credit keeping the total credits needed for graduation

15  consistent with subsection (1).

16         Section 41.  Section 233.0616, Florida Statutes, is

17  created to read:

18         233.0616  Personal fitness programs.--Each elementary

19  school and middle school is encouraged to implement a personal

20  fitness program, approved by the Department of Education, that

21  complies with American Heart Association guidelines for

22  elementary school and middle school personal fitness courses.

23  From incentive funds provided in the General Appropriations

24  Act, the Department of Education shall allocate funds to

25  schools implementing personal fitness programs pursuant to

26  this section.

27         Section 42.  From funds provided in the General

28  Appropriations Act, the Department of Education shall allocate

29  funds to provide for an additional one-fourth-time position to

30  upgrade the physical education specialist position in the

31


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  1  department from a three-fourths-time position to a full-time

  2  position.

  3         Section 43.  Subsections (3) and (13) of section

  4  240.61, Florida Statutes, are amended to read:

  5         240.61  College reach-out program.--

  6         (3)  To participate in the college reach-out program, a

  7  community college, a public university, or an independent

  8  postsecondary institution that is participating in a special

  9  program for students from disadvantaged backgrounds pursuant

10  to 20 U.S.C., ss. 1070d et seq. may submit a proposal to the

11  Department of Education. The State Board of Education shall

12  consider the proposals and determine which proposals to

13  implement as programs that will strengthen the educational

14  motivation and preparation of low-income educationally

15  disadvantaged students.

16         (13)  By February 15 January 15 of each year, the

17  Postsecondary Education Planning Commission shall submit to

18  the President of the Senate, the Speaker of the House of

19  Representatives, the Commissioner of Education, and the

20  Governor a report that evaluates the effectiveness of the

21  college reach-out program. The report must be based upon

22  information provided by participating institutions, the

23  Division of Universities, the Division of Community Colleges,

24  and the Division of Workforce Development pursuant to

25  subsections (7) and (12). The evaluation must include

26  longitudinal cohort assessments of college reach-out program

27  participants from their entry into the program to their

28  graduation from postsecondary institutions. To the extent

29  feasible, the performance of college reach-out program

30  participants must be compared to the performance of comparable

31


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  1  cohorts of students in public school and postsecondary

  2  education.

  3         Section 44.  Sections 240.154, 240.278, 240.521,

  4  240.522, 240.523, and 240.525, Florida Statutes, are repealed.

  5         Section 45.  Subsection (4) of section 216.136, Florida

  6  Statutes, is amended to read:

  7         216.136  Consensus estimating conferences; duties and

  8  principals.--

  9         (4)  EDUCATION ESTIMATING CONFERENCE.--

10         (a)  Duties.--The Education Estimating Conference shall

11  develop such official information relating to the state public

12  educational system, including forecasts of student

13  enrollments, the number of students qualified for state

14  financial aid programs and the appropriation required to fund

15  the full award amounts for each program, fixed capital outlay

16  needs, and Florida Education Finance Program formula needs, as

17  the conference determines is needed for the state planning and

18  budgeting system.  The conference's initial projections of

19  enrollments in public schools shall be forwarded by the

20  conference to each school district no later than 2 months

21  prior to the start of the regular session of the Legislature.

22  Each school district may, in writing, request adjustments to

23  the initial projections.  Any adjustment request shall be

24  submitted to the conference no later than 1 month prior to the

25  start of the regular session of the Legislature and shall be

26  considered by the principals of the conference.  A school

27  district may amend its adjustment request, in writing, during

28  the first 3 weeks of the legislative session, and such amended

29  adjustment request shall be considered by the principals of

30  the conference.  For any adjustment so requested, the district

31  shall indicate and explain, using definitions adopted by the


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  1  conference, the components of anticipated enrollment changes

  2  that correspond to continuation of current programs with

  3  workload changes; program improvement; program reduction or

  4  elimination; initiation of new programs; and any other

  5  information that may be needed by the Legislature.  For public

  6  schools, the conference shall submit its full-time equivalent

  7  student consensus estimate to the Legislature no later than 1

  8  month after the start of the regular session of the

  9  Legislature. No conference estimate may be changed without the

10  agreement of the full conference.

11         (b)  Adjustments.--No later than 2 months prior to the

12  start of the regular session of the Legislature, the

13  conference shall forward to each eligible postsecondary

14  education institution its initial projections of the number of

15  students qualified for state financial aid programs and the

16  appropriation required to fund those students at the full

17  award amount. Each postsecondary education institution may

18  request, in writing, adjustments to the initial projection.

19  Any adjustment request must be submitted to the conference no

20  later than 1 month prior to the start of the regular session

21  of the Legislature and shall be considered by the principals

22  of the conference. For any adjustment so requested, the

23  postsecondary education institution shall indicate and

24  explain, using definitions adopted by the conference, the

25  components of anticipated changes that correspond to

26  continuation of current programs with enrollment changes,

27  program reduction or elimination, initiation of new programs,

28  award amount increases or decreases, and any other information

29  that is considered by the conference. The conference shall

30  submit its consensus estimate to the Legislature no later than

31  1 month after the start of the regular session of the


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  1  Legislature. No conference estimate may be changed without the

  2  agreement of the full conference.

  3         (c)(b)  Principals.--The Associate Deputy Commissioner

  4  for Educational Management, the Executive Office of the

  5  Governor, the director of the Division of Economic and

  6  Demographic Research of the Joint Legislative Management

  7  Committee, and professional staff of the Senate and House of

  8  Representatives who have forecasting expertise, or their

  9  designees, are the principals of the Education Estimating

10  Conference.  The Associate Deputy Commissioner for Educational

11  Management or his or her designee shall preside over sessions

12  of the conference.

13         Section 46.  Effective July January 1, 1999, section

14  240.409, Florida Statutes, is amended to read:

15         240.409  Florida Public Student Assistance Grant

16  Program; eligibility for grants.--

17         (1)  There is hereby created a Florida Public Student

18  Assistance Grant Program. The program shall to be administered

19  by the participating institutions Department of Education in

20  accordance with rules of the state board.

21         (2)(a)  State student assistance grants through the

22  program may be made only to full-time degree-seeking students

23  who meet the general requirements for student eligibility as

24  provided in s. 240.404, except as otherwise provided in this

25  section.  Such grants shall be awarded annually for the amount

26  of demonstrated unmet need for the cost of education and may

27  not exceed an amount equal to the average prior academic year

28  cost of tuition and matriculation fees and other registration

29  fees for 30 credit hours at state universities or such other

30  amount as specified in the General Appropriations Act, to any

31  recipient.  A demonstrated unmet need of less than $200 shall


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  1  render the applicant ineligible for a state student assistance

  2  grant. Recipients of such grants must have been accepted at a

  3  state university or community college authorized by Florida

  4  law.  No student may receive an award for more than the

  5  equivalent of 9 semesters or 14 quarters of full-time

  6  enrollment in a period of not more than 6 consecutive years,

  7  except as otherwise provided in s. 240.404(3).

  8         (b)  A student applying for a Florida public student

  9  assistance grant shall be required to apply for the Pell

10  Grant. The Pell Grant entitlement shall be considered by the

11  department when conducting an assessment of the financial

12  resources available to each student.

13         (c)  The criteria and procedure for establishing

14  standards of eligibility shall be determined by the

15  department.  The department is directed to establish a rating

16  system upon which to base the approval of grants, and such

17  system shall include a certification of acceptability by the

18  state university or community college of the applicant's

19  choice and the use of a nationally recognized system of need

20  analysis.  Priority in the distribution of grant moneys shall

21  be given to students with the lowest total family resources,

22  in accordance with a nationally recognized system of need

23  analysis as determined pursuant to this subsection, taking

24  into consideration the receipt of Pell Grants and student

25  contributions to educational costs. Using the system of need

26  analysis, the department shall establish a maximum expected

27  family contribution. An institution may not make a grant from

28  this program to a student whose expected family contribution

29  exceeds the level established by the department.  An

30  institution may not impose additional criteria to determine a

31  student's eligibility to receive a grant award.


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  1         (d)  Each participating institution shall report, to

  2  the department by the established date, the eligible students

  3  to whom grant moneys are disbursed each academic term. Each

  4  institution shall also report to the department necessary

  5  demographic and eligibility data for such students. The

  6  department is directed to establish, for fall enrollment, an

  7  initial application deadline for students attending all

  8  eligible institutions and an additional application deadline

  9  for community college applicants who apply after the initial

10  application deadline.  The second community college deadline

11  shall be at the close of each institution's drop-add period.

12  The department shall reserve an amount to be designated

13  annually in the General Appropriations Act for the purpose of

14  providing awards to community college students who apply for a

15  student assistance grant after the initial application

16  deadline.  Community college applicants who apply during the

17  initial application period and are eligible to receive an

18  award, but do not receive an award because of insufficient

19  funds, shall have their applications reconsidered with those

20  community college applicants who apply after the initial

21  application deadline.  The provisions of this paragraph shall

22  take effect beginning with the 1990-1991 academic year.

23         (3)  Based on the unmet financial need of an eligible

24  applicant, the full amount of a Florida public student

25  assistance grant must be between $200 and the weighted average

26  of the cost of matriculation and other registration fees for

27  30 credit hours at state universities $1,500 per academic year

28  or the amount specified in the General Appropriations Act.

29  When funds are not sufficient to make full awards to all

30  eligible applicants, the department shall reduce the amount of

31  each recipient's grant award pro rata.  For any year in which


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  1  a pro rata grant reduction is necessary, such adjustment shall

  2  be made by reducing the second semester or the second and

  3  third quarter award disbursements to grant recipients.  In

  4  each such instance, institutions shall notify students of

  5  award adjustments.

  6         (4)  In the event that a Florida public student

  7  assistance grant recipient transfers from one institution

  8  eligible under this section, s. 240.4095, or s. 240.4097 to

  9  another, his or her eligibility shall be transferable upon

10  approval of the department. When approved by the department,

11  the amount of the unmet need shall be recalculated for the new

12  institution and shall be adjusted accordingly.

13         (4)(5)(a)  The funds appropriated for the Florida

14  Public Student Assistance Grant shall be distributed to

15  eligible institutions in accordance with a formula recommended

16  by the Department of Education's Florida Council of Student

17  Financial Aid Advisors and reviewed by the Postsecondary

18  Education Planning Commission, the State Board of Community

19  Colleges, and the Board of Regents. The formula shall consider

20  at least the prior year's distribution of funds, the number of

21  full-time eligible applicants who did not receive awards, the

22  standardization of the expected family contribution, and

23  provisions for unused funds.

24         (b)  Payment of Florida public student assistance

25  grants shall may be transmitted to the president of the state

26  university or community college which the recipient is

27  attending, or to his or her representative, in advance of the

28  registration period. Institutions shall notify students of the

29  amount of their awards.

30         (c)(b)  Institutions shall certify to the department,

31  within 30 days of the end of regular registration, the


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  1  eligibility status of each awarded student.  The eligibility

  2  status of each student to receive a disbursement shall be

  3  determined by each institution as of the end of its regular

  4  registration period, inclusive of a drop-add period.

  5  Institutions shall not be required to reevaluate a student's

  6  eligibility status after this date for purposes of changing

  7  amending eligibility determinations previously made.  However,

  8  an institution shall be required to make refunds for students

  9  who receive award disbursements and terminate enrollment for

10  any reason during the academic term when an institution's

11  refund policies permit a student to receive a refund under

12  these circumstances.

13         (d)(c)  Institutions shall certify to the department

14  the amount of funds disbursed to each student and shall remit

15  to the department any undisbursed advances by June 1 of each

16  year within 60 days of the end of regular registration.

17         (5)(6)  Funds appropriated by the Legislature for state

18  student assistance grants shall be deposited in the State

19  Student Financial Assistance Trust Fund. Notwithstanding the

20  provisions of s. 216.301 and pursuant to s. 216.351, any

21  balance in the trust fund at the end of any fiscal year that

22  has been allocated to the Florida Public Student Assistance

23  Grant Program shall remain therein and shall be available for

24  carrying out the purposes of this section.

25         (6)(7)  The State Board of Education shall establish

26  rules necessary to implement this section.

27         Section 47.  Effective July 1, 1999, section 240.4095,

28  Florida Statutes, is amended to read:

29         240.4095  Florida Private Student Assistance Grant

30  Program; eligibility for grants.--

31


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  1         (1)  There is hereby created a Florida Private Student

  2  Assistance Grant Program. The program shall to be administered

  3  by the participating institutions Department of Education in

  4  accordance with rules of the state board.

  5         (2)(a)  Florida private student assistance grants from

  6  the State Student Financial Assistance Trust Fund may be made

  7  only to full-time degree-seeking students who meet the general

  8  requirements for student eligibility as provided in s.

  9  240.404, except as otherwise provided in this section.  Such

10  grants shall be awarded for the amount of demonstrated unmet

11  need for tuition and fees and may not exceed an amount equal

12  to the average matriculation and other registration fees for

13  30 credit hours at state universities plus $1,000 a total of

14  $1,500 per academic year, or as specified in the General

15  Appropriations Act, to any applicant.  A demonstrated unmet

16  need of less than $200 shall render the applicant ineligible

17  for a Florida private student assistance grant.  Recipients of

18  such grants must have been accepted at a

19  baccalaureate-degree-granting independent nonprofit college or

20  university, which is accredited by the Commission on Colleges

21  of the Southern Association of Colleges and Schools, and which

22  has a secular purpose, and which is located in and chartered

23  as a domestic corporation by the state.  No student may

24  receive an award for more than the equivalent of 9 semesters

25  or 14 quarters of full-time enrollment in a period of not more

26  than 6 consecutive years, except as otherwise provided in s.

27  240.404(3).

28         (b)  A student applying for a Florida private student

29  assistance grant shall be required to apply for the Pell

30  Grant. The Pell Grant entitlement shall be considered by the

31


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  1  department when conducting an assessment of the financial

  2  resources available to each student.

  3         (c)  The criteria and procedure for establishing

  4  standards of eligibility shall be determined by the

  5  department. The department is directed to establish a rating

  6  system upon which to base the approval of grants, including

  7  the use of a nationally recognized system of need analysis.

  8  The system shall include a certification of acceptability by

  9  the independent nonprofit college or university of the

10  applicant's choice.  Priority in the distribution of grant

11  moneys shall be given to students with the lowest total family

12  resources, in accordance with a nationally recognized system

13  of need analysis as determined pursuant to this subsection,

14  taking into consideration the receipt of Pell Grants and

15  student contributions to educational costs. Using the system

16  of need analysis, the department shall establish a maximum

17  expected family contribution. An institution may not make a

18  grant from this program to a student whose expected family

19  contribution exceeds the level established by the department.

20  An institution may not impose additional criteria to determine

21  a student's eligibility to receive a grant award.

22         (d)  Each participating institution shall report, to

23  the department by the established date, the eligible students

24  to whom grant moneys are disbursed each academic term. Each

25  institution shall also report to the department necessary

26  demographic and eligibility data for such students.

27         (3)  Based on the unmet financial need of an eligible

28  applicant, the full amount of a Florida private student

29  assistance grant must be between $200 and the average cost of

30  matriculation and other registration fees for 30 credit hours

31  at state universities plus $1,000 $1,500 per academic year or


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  1  the amount specified in the General Appropriations Act. When

  2  funds are not sufficient to make full awards to all eligible

  3  applicants, the department shall reduce the amount of each

  4  recipient's grant award pro rata.  For any year in which a pro

  5  rata grant reduction is necessary, such adjustment shall be

  6  made by reducing the second semester or the second and third

  7  quarter award disbursements to grant recipients.  In each such

  8  instance, institutions shall notify students of award

  9  adjustments.

10         (4)  In the event that a Florida private student

11  assistance grant recipient transfers from one institution

12  eligible under this section, s. 240.409, or s. 240.4097 to

13  another, his or her eligibility shall be transferable upon

14  approval of the department. When approved by the department,

15  the amount of the unmet need shall be recalculated for the new

16  institution and shall be adjusted accordingly.

17         (4)(5)(a)  The funds appropriated for the Florida

18  Private Student Assistance Grant shall be distributed to

19  eligible institutions in accordance with a formula recommended

20  by the Department of Education's Florida Council of Student

21  Financial Aid Advisors and reviewed by the Postsecondary

22  Education Planning Commission and the Independent Colleges and

23  Universities of Florida. The formula shall consider at least

24  the prior year's distribution of funds, the number of

25  full-time eligible applicants who did not receive awards, the

26  standardization of the expected family contribution, and

27  provisions for unused funds.

28         (b)  Payment of Florida private student assistance

29  grants shall may be transmitted to the president of the

30  college or university which the recipient is attending, or to

31  his or her representative, in advance of the registration


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  1  period. Institutions shall notify students of the amount of

  2  their awards.

  3         (c)(b)  Institutions shall certify to the department,

  4  within 30 days of the end of regular registration, the

  5  eligibility status of each awarded student. The eligibility

  6  status of each student to receive a disbursement shall be

  7  determined by each institution as of the end of its regular

  8  registration period, inclusive of a drop-add period.

  9  Institutions shall not be required to reevaluate a student's

10  eligibility status after this date for purposes of changing

11  amending eligibility determinations previously made. However,

12  an institution shall be required to make refunds for students

13  who receive award disbursements and terminate enrollment for

14  any reason during the academic term when an institution's

15  refund policies permit a student to receive a refund under

16  these circumstances.

17         (d)(c)  Institutions shall certify to the department

18  the amount of funds disbursed to each student and shall remit

19  to the department any undisbursed advances by June 1 of each

20  year within 60 days of the end of regular registration.

21         (e)(d)  Each institution that receives moneys through

22  the Florida Private Student Assistance Grant Program shall

23  cause to be prepared a biennial report that includes an

24  independent external audit of the institution's administration

25  of the program and a complete accounting of moneys in the

26  State Student Financial Assistance Trust Fund allocated to the

27  institution for the program. Such report shall be submitted to

28  the department on or before March 1 every other year.  The

29  department may conduct its own annual or biennial audit of an

30  institution's administration of the program and its allocated

31  funds in lieu of the required biennial report and independent


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  1  external audit.  The department may suspend or revoke an

  2  institution's eligibility to receive future moneys from the

  3  trust fund for the program or request a refund of any moneys

  4  overpaid to the institution through the trust fund for the

  5  program if the department finds that an institution has not

  6  complied with the provisions of this section. Any refund

  7  requested pursuant to this paragraph shall be remitted within

  8  60 days.

  9         (5)(6)  Funds appropriated by the Legislature for

10  Florida private student assistance grants shall be deposited

11  in the State Student Financial Assistance Trust Fund.

12  Notwithstanding the provisions of s. 216.301 and pursuant to

13  s. 216.351, any balance in the trust fund at the end of any

14  fiscal year that has been allocated to the Florida Private

15  Student Assistance Grant Program shall remain therein and

16  shall be available for carrying out the purposes of this

17  section and as otherwise provided by law.

18         (6)(7)  The State Board of Education shall adopt rules

19  necessary to implement this section.

20         Section 48.  Effective July 1, 1999, section 240.4097,

21  Florida Statutes, is amended to read:

22         240.4097  Florida Postsecondary Student Assistance

23  Grant Program; eligibility for grants.--

24         (1)  There is hereby created a Florida Postsecondary

25  Student Assistance Grant Program. The program shall to be

26  administered by the participating institutions Department of

27  Education in accordance with rules of the state board.

28         (2)(a)  Florida postsecondary student assistance grants

29  through the State Student Financial Assistance Trust Fund may

30  be made only to full-time degree-seeking students who meet the

31  general requirements for student eligibility as provided in s.


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  1  240.404, except as otherwise provided in this section.  Such

  2  grants shall be awarded for the amount of demonstrated unmet

  3  need for tuition and fees and may not exceed an amount equal

  4  to the average prior-academic-year cost of matriculation and

  5  other registration fees for 30 credit hours at state

  6  universities plus $1,000 a total of $1,500 per academic year,

  7  or as specified in the General Appropriations Act, to any

  8  applicant.  A demonstrated unmet need of less than $200 shall

  9  render the applicant ineligible for a Florida postsecondary

10  student assistance grant.  Recipients of such grants must have

11  been accepted at a postsecondary institution that is located

12  in and chartered as a domestic corporation by the state and

13  that is:

14         1.  A private nursing diploma school approved by the

15  Florida Board of Nursing; or

16         2.  An institution either licensed by the State Board

17  of Independent Colleges and Universities or exempt from

18  licensure pursuant to s. 246.085(1)(a), excluding those

19  institutions the students of which are eligible to receive a

20  Florida private student assistance grant pursuant to s.

21  240.4095.

22

23  No student may receive an award for more than the equivalent

24  of 9 semesters or 14 quarters of full-time enrollment in a

25  period of not more than 6 consecutive years, except as

26  otherwise provided in s. 240.404(3).

27         (b)  A student applying for a Florida postsecondary

28  student assistance grant shall be required to apply for the

29  Pell Grant. The Pell Grant entitlement shall be considered by

30  the department when conducting an assessment of the financial

31  resources available to each student.


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  1         (c)  The criteria and procedure for establishing

  2  standards of eligibility shall be determined by the

  3  department.  The department is directed to establish a rating

  4  system upon which to base the approval of grants, including

  5  the use of a nationally recognized system of need analysis.

  6  The system shall include a certification of acceptability by

  7  the school of the applicant's choice.  Priority in the

  8  distribution of grant moneys shall be given to students with

  9  the lowest total family resources, in accordance with a

10  nationally recognized system of need analysis as determined

11  pursuant to this subsection, taking into consideration the

12  receipt of Pell Grants and student contributions to

13  educational costs. Using the system of need analysis, the

14  department shall establish a maximum expected family

15  contribution. An institution may not make a grant from this

16  program to a student whose expected family contribution

17  exceeds the level established by the department.  An

18  institution may not impose additional criteria to determine a

19  student's eligibility to receive a grant award.

20         (d)  Each participating institution shall report, to

21  the department by the established date, the eligible students

22  to whom grant moneys are disbursed each academic term. Each

23  institution shall also report to the department necessary

24  demographic and eligibility data for such students.

25         (3)  Based on the unmet financial need of an eligible

26  applicant, the full amount of a Florida postsecondary student

27  assistance grant must be between $200 and the average cost of

28  matriculation and other registration fees for 30 credit hours

29  at state universities plus $1,000 $1,500 per academic year or

30  the amount specified in the General Appropriations Act. When

31  funds are not sufficient to make full awards to all eligible


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  1  applicants, the department shall reduce the amount of each

  2  recipient's grant award pro rata.  For any year in which a pro

  3  rata grant reduction is necessary, such adjustment shall be

  4  made by reducing the second semester or the second and third

  5  quarter award disbursements to grant recipients.  In each such

  6  instance, institutions shall notify students of award

  7  adjustments.

  8         (4)  In the event that a student assistance grant

  9  recipient transfers from one institution eligible under this

10  section, s. 240.409, or s. 240.4095 to another, his or her

11  eligibility shall be transferable upon approval of the

12  department.  When approved by the department, the amount of

13  the unmet need shall be recalculated for the new institution

14  and shall be adjusted accordingly.

15         (4)(5)(a)  The funds appropriated for the Florida

16  Postsecondary Student Assistance Grant shall be distributed to

17  eligible institutions in accordance with a formula recommended

18  by the Department of Education's Florida Council of Student

19  Financial Aid Advisors and reviewed by the Postsecondary

20  Education Planning Commission and the Florida Association of

21  Postsecondary Schools and Colleges. The formula shall consider

22  at least the prior year's distribution of funds, the number of

23  full-time eligible applicants who did not receive awards, the

24  standardization of the expected family contribution, and

25  provisions for unused funds.

26         (b)  Payment of Florida postsecondary student

27  assistance grants shall may be transmitted to the president of

28  the eligible institution which the recipient is attending, or

29  to his or her representative, in advance of the registration

30  period. Institutions shall notify students of the amount of

31  their awards.


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  1         (c)(b)  Institutions shall certify to the department,

  2  within 30 days of the end of regular registration, the

  3  eligibility status of each awarded student.  The eligibility

  4  status of each student to receive a disbursement shall be

  5  determined by each institution as of the end of its regular

  6  registration period, inclusive of a drop-add period.

  7  Institutions shall not be required to reevaluate a student's

  8  eligibility status after this date for purposes of changing

  9  amending eligibility determinations previously made.  However,

10  an institution shall be required to make refunds for students

11  who receive award disbursements and terminate enrollment for

12  any reason during the academic term when an institution's

13  refund policies permit a student to receive a refund under

14  these circumstances.

15         (d)(c)  Institutions shall certify to the department

16  the amount of funds disbursed to each student and shall remit

17  to the department any undisbursed advances by June 1 of each

18  year within 60 days of the end of regular registration.

19         (e)(d)  Each institution that receives moneys through

20  the Florida Postsecondary Student Assistance Grant Program

21  shall cause to be prepared a biennial report that includes an

22  independent external audit of the institution's administration

23  of the program and a complete accounting of moneys in the

24  State Student Financial Assistance Trust Fund allocated to the

25  institution for the program.  Such report shall be submitted

26  to the department on or before March 1 every other year.  The

27  department may conduct its own annual or biennial audit of an

28  institution's administration of the program and its allocated

29  funds in lieu of the required biennial report and independent

30  external audit. The department may suspend or revoke an

31  institution's eligibility to receive future moneys from the


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  1  trust fund for the program or request a refund of any moneys

  2  overpaid to the institution through the trust fund for the

  3  program if the department finds that an institution has not

  4  complied with the provisions of this section.  Any refund

  5  requested pursuant to this paragraph shall be remitted within

  6  60 days.

  7         (5)(6)  Any institution that was eligible to receive

  8  state student assistance grants on January 1, 1989, and that

  9  is not eligible to receive grants pursuant to s. 240.4095 is

10  eligible to receive grants pursuant to this section.

11         (6)(7)  Funds appropriated by the Legislature for

12  Florida postsecondary student assistance grants shall be

13  deposited in the State Student Financial Assistance Trust

14  Fund. Notwithstanding the provisions of s. 216.301 and

15  pursuant to s. 216.351, any balance in the trust fund at the

16  end of any fiscal year that has been allocated to the Florida

17  Postsecondary Student Assistance Grant Program shall remain

18  therein and shall be available for carrying out the purposes

19  of this section and as otherwise provided by law.

20         (7)(8)  The State Board of Education shall adopt rules

21  necessary to implement this section.

22         Section 49.  Section 240.551, Florida Statutes, is

23  amended to read:

24         240.551  Florida Prepaid College Postsecondary

25  Education Expense Program.--

26         (1)  LEGISLATIVE INTENT.--The Legislature recognizes

27  that educational opportunity at the postsecondary level is a

28  critical state interest.  It further recognizes that

29  educational opportunity is best ensured through the provision

30  of postsecondary institutions that are geographically and

31  financially accessible. Accordingly, it is the intent of the


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  1  Legislature that a program be established through which many

  2  of the costs associated with postsecondary attendance may be

  3  paid in advance and fixed at a guaranteed level for the

  4  duration of undergraduate enrollment.  It is similarly the

  5  intent of the Legislature to provide a program that fosters

  6  timely financial planning for postsecondary attendance and to

  7  encourage employer participation in such planning through

  8  program contributions on behalf of employees and the

  9  dependents of employees.

10         (2)  DEFINITIONS.--As used in this section:

11         (a)  "Advance payment contract" means a contract

12  entered into by the board and a purchaser pursuant to this

13  section.

14         (b)  "Board" means the Florida Prepaid College

15  Postsecondary Education Expense Board.

16         (c)  "Fund" means the Florida Prepaid College

17  Postsecondary Education Expense Trust Fund.

18         (d)(g)  "Program" means the Florida Prepaid College

19  Postsecondary Education Expense Program.

20         (e)(d)  "Purchaser" means a person who makes or is

21  obligated to make advance registration or dormitory residence

22  payments in accordance with an advance payment contract.

23         (f)(e)  "Qualified beneficiary" means:

24         1.  A resident of this state at the time a purchaser

25  enters into an advance payment contract on behalf of the

26  resident;

27         2.  A nonresident who is the child of a noncustodial

28  parent who is a resident of this state at the time that such

29  parent enters into an advance payment contract on behalf of

30  the child; or

31


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  1         3.  For purposes of advance payment contracts entered

  2  into pursuant to subsection (22) paragraph (5)(j), a graduate

  3  of an accredited high school in this state who is a resident

  4  of this state at the time he or she is designated to receive

  5  the benefits of the advance payment contract.

  6         (g)(h)  "Registration fee" means matriculation fee,

  7  financial aid fee, building fee, and Capital Improvement Trust

  8  Fund fee.

  9         (h)(f)  "State postsecondary institution" means any

10  community college identified in s. 240.3031 or university

11  identified in s. 240.2011.

12         (3)  FLORIDA PREPAID COLLEGE PROGRAM; CREATION.--There

13  is created a Florida Prepaid College Postsecondary Education

14  Expense Program to provide a medium through which the cost of

15  registration and dormitory residence may be paid in advance of

16  enrollment in a state postsecondary institution at a rate

17  lower than the projected corresponding cost at the time of

18  actual enrollment.  Such payments shall be combined and

19  invested in a manner that yields, at a minimum, sufficient

20  interest to generate the difference between the prepaid amount

21  and the cost of registration and dormitory residence at the

22  time of actual enrollment. Students who enroll in a state

23  postsecondary institution pursuant to this section shall be

24  charged no fees in excess of the terms delineated in the

25  advance payment contract.

26         (4)  FLORIDA PREPAID COLLEGE TRUST FUND.--There is

27  created within the State Board of Administration the Florida

28  Prepaid College Postsecondary Education Expense Trust Fund.

29  The fund shall consist of state appropriations, moneys

30  acquired from other governmental or private sources, and

31  moneys remitted in accordance with advance payment contracts.


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  1  All funds deposited into the trust fund may be invested

  2  pursuant to s. 215.47; however, such investment shall not be

  3  mandatory. Dividends, interest, and gains accruing to the

  4  trust fund shall increase the total funds available for the

  5  program. Notwithstanding the provisions of chapter 717, funds

  6  associated with terminated contracts terminated pursuant to

  7  subsection (12) paragraph (6)(d) and canceled contracts for

  8  which no refunds have been claimed shall increase the total

  9  funds available for the program.  However, the board shall

10  establish procedures for notifying purchasers who subsequently

11  cancel their contracts of any unclaimed refund and shall

12  establish a time period after which no refund may be claimed

13  by a purchaser who canceled a contract. Any balance contained

14  within the fund at the end of a fiscal year shall remain

15  therein and shall be available for carrying out the purposes

16  of the program.  In the event that dividends, interest, and

17  gains exceed exceeds the amount necessary for program

18  administration and disbursements, the board may designate an

19  additional percentage of the fund to serve as a contingency

20  fund.  Moneys contained within the fund shall be exempt from

21  the investment requirements of s. 18.10. Any funds of a

22  direct-support organization created pursuant to subsection

23  (22) paragraph (5)(j) shall be exempt from the provisions of

24  this subsection paragraph.

25         (5)  PROGRAM ADMINISTRATION.--

26         (a)  The Florida Prepaid College Postsecondary

27  Education Expense Program shall be administered by the Florida

28  Prepaid College Postsecondary Education Expense Board as an

29  agency of the state.  The Florida Prepaid College

30  Postsecondary Education Expense Board is hereby created as a

31  body corporate with all the powers of a body corporate for the


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  1  purposes delineated in this section.  For the purposes of s.

  2  6, Art. IV of the State Constitution, the board shall be

  3  assigned to and administratively housed within the State Board

  4  of Administration, but it shall independently exercise the

  5  powers and duties specified in this section.

  6         (b)  The board shall consist of seven members to be

  7  composed of the Insurance Commissioner and Treasurer, the

  8  Comptroller, the Chancellor of the Board of Regents, the

  9  Executive Director of the State Board of Community Colleges,

10  and three members appointed by the Governor and subject to

11  confirmation by the Senate.  Each member appointed by the

12  Governor shall possess knowledge, skill, and experience in the

13  areas of accounting, actuary, risk management, or investment

14  management.  Each member of the board not appointed by the

15  Governor may name a designee to serve the board on behalf of

16  the member; however, any designee so named shall meet the

17  qualifications required of gubernatorial appointees to the

18  board. Members appointed by the Governor shall serve terms of

19  3 years except that, in making the initial appointments, the

20  Governor shall appoint one member to serve for 1 year, one

21  member to serve for 2 years, and one member to serve for 3

22  years.  Any person appointed to fill a vacancy on the board

23  shall be appointed in a like manner and shall serve for only

24  the unexpired term.  Any member shall be eligible for

25  reappointment and shall serve until a successor qualifies.

26  Members of the board shall serve without compensation but

27  shall be reimbursed for per diem and travel in accordance with

28  s. 112.061.  Each member of the board shall file a full and

29  public disclosure of his or her financial interests pursuant

30  to s. 8, Art. II of the State Constitution and corresponding

31  statute.


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  1         (c)(a)  The Governor shall appoint a member of the

  2  board to serve as the initial chair of the board.  Thereafter,

  3  the board shall elect a chair annually.  The board shall

  4  annually elect a board member to serve as chair and a board

  5  member to serve as vice chair and shall designate a

  6  secretary-treasurer who need not be a member of the board.

  7  The secretary-treasurer shall keep a record of the proceedings

  8  of the board and shall be the custodian of all printed

  9  material filed with or by the board and of its official seal.

10  Notwithstanding the existence of vacancies on the board, a

11  majority of the members shall constitute a quorum. The board

12  shall take no official action in the absence of a quorum.  The

13  board shall meet, at a minimum, on a quarterly basis at the

14  call of the chair.

15         (6)  FLORIDA PREPAID COLLEGE BOARD; DUTIES.--The board

16  shall:

17         (a)(b)  The board shall Appoint an executive director

18  to serve as the chief administrative and operational officer

19  of the board and to perform other duties assigned to him or

20  her by the board.

21         (b)  Administer the fund in a manner that is

22  sufficiently actuarially sound to defray the obligations of

23  the program. The board shall annually evaluate or cause to be

24  evaluated the actuarial soundness of the fund. If the board

25  perceives a need for additional assets in order to preserve

26  actuarial soundness, the board may adjust the terms of

27  subsequent advance payment contracts to ensure such soundness.

28         (c)  Establish a comprehensive investment plan for the

29  purposes of this section with the approval of the State Board

30  of Administration. The comprehensive investment plan shall

31  specify the investment policies to be utilized by the board in


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  1  its administration of the fund. The board may place assets of

  2  the fund in savings accounts or use the same to purchase fixed

  3  or variable life insurance or annuity contracts, securities,

  4  evidence of indebtedness, or other investment products

  5  pursuant to the comprehensive investment plan and in such

  6  proportions as may be designated or approved under that plan.

  7  Such insurance, annuity, savings, or investment products shall

  8  be underwritten and offered in compliance with the applicable

  9  federal and state laws, regulations, and rules by persons who

10  are duly authorized by applicable federal and state

11  authorities. Within the comprehensive investment plan, the

12  board may authorize investment vehicles, or products incident

13  thereto, as may be available or offered by qualified companies

14  or persons. A contract purchaser may not direct the investment

15  of his or her contribution to the trust fund and a contract

16  beneficiary may not direct the contribution made on his or her

17  behalf to the trust fund. Board members and employees of the

18  board are not prohibited from purchasing advance payment

19  contracts by virtue of their fiduciary responsibilities as

20  members of the board or official duties as employees of the

21  board.

22         (d)  Solicit proposals and contract, pursuant to s.

23  287.057, for the marketing of the Florida Prepaid College

24  Program. The entity designated pursuant to this paragraph

25  shall serve as a centralized marketing agent for the program

26  and shall be solely responsible for the marketing of the

27  program. Any materials produced for the purpose of marketing

28  the program shall be submitted to the board for review. No

29  such materials shall be made available to the public before

30  the materials are approved by the board. Any educational

31  institution may distribute marketing materials produced for


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  1  the program; however, all such materials shall have been

  2  approved by the board prior to distribution. Neither the state

  3  nor the board shall be liable for misrepresentation of the

  4  program by a marketing agent.

  5         (e)  Solicit proposals and contract, pursuant to s.

  6  287.057, for a trustee services firm to select and supervise

  7  investment programs on behalf of the board. The goals of the

  8  board in selecting a trustee services firm shall be to obtain

  9  the highest standards of professional trustee services, to

10  allow all qualified firms interested in providing such

11  services equal consideration, and to provide such services to

12  the state at no cost and to the purchasers at the lowest cost

13  possible. The trustee services firm shall agree to meet the

14  obligations of the board to qualified beneficiaries if moneys

15  in the fund fail to offset the obligations of the board as a

16  result of imprudent selection or supervision of investment

17  programs by such firm. Evaluations of proposals submitted

18  pursuant to this paragraph shall include, but not be limited

19  to, the following criteria:

20         1.  Adequacy of trustee services for supervision and

21  management of the program, including current operations and

22  staff organization and commitment of management to the

23  proposal.

24         2.  Capability to execute program responsibilities

25  within time and regulatory constraints.

26         3.  Past experience in trustee services and current

27  ability to maintain regular and continuous interactions with

28  the board, records administrator, and product provider.

29         4.  The minimum purchaser participation assumed within

30  the proposal and any additional requirements of purchasers.

31


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  1         5.  Adequacy of technical assistance and services

  2  proposed for staff.

  3         6.  Adequacy of a management system for evaluating and

  4  improving overall trustee services to the program.

  5         7.  Adequacy of facilities, equipment, and electronic

  6  data processing services.

  7         8.  Detailed projections of administrative costs,

  8  including the amount and type of insurance coverage, and

  9  detailed projections of total costs.

10         (f)  Solicit proposals and contract, pursuant to s.

11  287.057, for product providers to develop investment

12  portfolios on behalf of the board to achieve the purposes of

13  this section. Product providers shall be limited to authorized

14  insurers as defined in s. 624.09, banks as defined in s.

15  658.12, associations as defined in s. 665.012, authorized

16  Securities and Exchange Commission investment advisers, and

17  investment companies as defined in the Investment Company Act

18  of 1940. All product providers shall have their principal

19  place of business and corporate charter located and registered

20  in the United States. In addition, each product provider shall

21  agree to meet the obligations of the board to qualified

22  beneficiaries if moneys in the fund fail to offset the

23  obligations of the board as a result of imprudent investing by

24  such provider. Each authorized insurer shall evidence superior

25  performance overall on an acceptable level of surety in

26  meeting its obligations to its policyholders and other

27  contractual obligations. Only qualified public depositories

28  approved by the Insurance Commissioner and Treasurer shall be

29  eligible for board consideration. Each investment company

30  shall provide investment plans as specified within the request

31  for proposals. The goals of the board in selecting a product


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  1  provider company shall be to provide all purchasers with the

  2  most secure, well-diversified, and beneficially administered

  3  postsecondary education expense plan possible, to allow all

  4  qualified firms interested in providing such services equal

  5  consideration, and to provide such services to the state at no

  6  cost and to the purchasers at the lowest cost possible.

  7  Evaluations of proposals submitted pursuant to this paragraph

  8  shall include, but not be limited to, the following criteria:

  9         1.  Fees and other costs charged to purchasers that

10  affect account values or operational costs related to the

11  program.

12         2.  Past and current investment performance, including

13  investment and interest rate history, guaranteed minimum rates

14  of interest, consistency of investment performance, and any

15  terms and conditions under which moneys are held.

16         3.  Past experience and ability to provide timely and

17  accurate service in the areas of records administration,

18  benefit payments, investment management, and complaint

19  resolution.

20         4.  Financial history and current financial strength

21  and capital adequacy to provide products, including operating

22  procedures and other methods of protecting program assets.

23         (7)(c)  FLORIDA PREPAID COLLEGE BOARD; POWERS.--The

24  board shall have the powers necessary or proper to carry out

25  the provisions of this section, including, but not limited to,

26  the power to:

27         (a)1.  Adopt an official seal and rules.

28         (b)2.  Sue and be sued.

29         (c)3.  Make and execute contracts and other necessary

30  instruments.

31


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  1         (d)4.  Establish agreements or other transactions with

  2  federal, state, and local agencies, including state

  3  universities and community colleges.

  4         (e)5.  Invest funds not required for immediate

  5  disbursement.

  6         (f)6.  Appear in its own behalf before boards,

  7  commissions, or other governmental agencies.

  8         (g)7.  Hold, buy, and sell any instruments,

  9  obligations, securities, and property determined appropriate

10  by the board.

11         (h)8.  Require a reasonable length of state residence

12  for qualified beneficiaries.

13         (i)9.  Restrict the number of participants in the

14  community college plan, university plan, and dormitory

15  residence plan, respectively. However, any person denied

16  participation solely on the basis of such restriction shall be

17  granted priority for participation during the succeeding year.

18         (j)10.  Segregate contributions and payments to the

19  fund into various accounts and funds.

20         (k)11.  Contract for necessary goods and services,

21  employ necessary personnel, and engage the services of private

22  consultants, actuaries, managers, legal counsel, and auditors

23  for administrative or technical assistance.

24         (l)12.  Solicit and accept gifts, grants, loans, and

25  other aids from any source or participate in any other way in

26  any government program to carry out the purposes of this

27  section.

28         (m)13.  Require and collect administrative fees and

29  charges in connection with any transaction and impose

30  reasonable penalties, including default, for delinquent

31


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  1  payments or for entering into an advance payment contract on a

  2  fraudulent basis.

  3         (n)14.  Procure insurance against any loss in

  4  connection with the property, assets, and activities of the

  5  fund or the board.

  6         (o)15.  Impose reasonable time limits on use of the

  7  tuition benefits provided by the program. However, any such

  8  limitation shall be specified within the advance payment

  9  contract.

10         (p)16.  Delineate the terms and conditions under which

11  payments may be withdrawn from the fund and impose reasonable

12  fees and charges for such withdrawal. Such terms and

13  conditions shall be specified within the advance payment

14  contract.

15         (q)17.  Provide for the receipt of contributions in

16  lump sums or installment payments.

17         18.  Establish other policies, procedures, and criteria

18  to implement and administer the provisions of this section.

19         (r)19.  Require that purchasers of advance payment

20  contracts verify, under oath, any requests for contract

21  conversions, substitutions, transfers, cancellations, refund

22  requests, or contract changes of any nature. Verification

23  shall be accomplished as authorized and provided for in s.

24  92.525(1)(a).

25         (d)  The board shall administer the fund in a manner

26  that is sufficiently actuarially sound to defray the

27  obligations of the program.  The board shall annually evaluate

28  or cause to be evaluated the actuarial soundness of the fund.

29  If the board perceives a need for additional assets in order

30  to preserve actuarial soundness, the board may adjust the

31


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  1  terms of subsequent advance payment contracts to ensure such

  2  soundness.

  3         (e)  The board, acting with the approval of the State

  4  Board of Administration, shall establish a comprehensive

  5  investment plan for the purposes of this section.  The

  6  comprehensive investment plan shall specify the investment

  7  policies to be utilized by the board in its administration of

  8  the fund.  The board may place assets of the fund in savings

  9  accounts or use the same to purchase fixed or variable life

10  insurance or annuity contracts, securities, evidence of

11  indebtedness, or other investment products pursuant to the

12  comprehensive investment plan and in such proportions as may

13  be designated or approved under that plan.  Such insurance,

14  annuity, savings, or investment products shall be underwritten

15  and offered in compliance with the applicable federal and

16  state laws, regulations, and rules by persons who are duly

17  authorized by applicable federal and state authorities.

18  Within the comprehensive investment plan, the board may

19  authorize investment vehicles, or products incident thereto,

20  as may be available or offered by qualified companies or

21  persons. A contract purchaser may not direct the investment of

22  his or her contribution to the trust fund, and a contract

23  beneficiary may not direct the contribution made on his or her

24  behalf to the trust fund. Board members and employees of the

25  board are not prohibited from purchasing advance payment

26  contracts by virtue of their fiduciary responsibilities as

27  members of the board or official duties as employees of the

28  board.

29         (s)(f)  The board may Delegate responsibility for

30  administration of the comprehensive investment plan required

31  in paragraph (6)(c)(e) to a person the board determines to be


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  1  qualified. Such person shall be compensated by the board.

  2  Directly or through such person, the board may contract with a

  3  private corporation or institution to provide such services as

  4  may be a part of the comprehensive investment plan or as may

  5  be deemed necessary or proper by the board or such person,

  6  including, but not limited to, providing consolidated billing,

  7  individual and collective recordkeeping and accountings, and

  8  asset purchase, control, and safekeeping.

  9         (t)  Endorse insurance coverage written exclusively for

10  the purpose of protecting advance payment contracts, and the

11  purchasers and beneficiaries thereof, which may be issued in

12  the form of a group life policy and which is exempt from the

13  provisions of part V of chapter 627.

14         (u)  Solicit proposals and contract, pursuant to s.

15  287.057, for the services of a records administrator. The

16  goals of the board in selecting a records administrator shall

17  be to provide all purchasers with the most secure,

18  well-diversified, and beneficially administered postsecondary

19  education expense plan possible, to allow all qualified firms

20  interested in providing such services equal consideration, and

21  to provide such services to the state at no cost and to the

22  purchasers at the lowest cost possible. Evaluations of

23  proposals submitted pursuant to this paragraph shall include,

24  but not be limited to, the following criteria:

25         1.  Fees and other costs charged to purchasers that

26  affect account values or operational costs related to the

27  program.

28         2.  Past experience in records administration and

29  current ability to provide timely and accurate service in the

30  areas of records administration, audit and reconciliation,

31


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  1  plan communication, participant service, and complaint

  2  resolution.

  3         3.  Sufficient staff and computer capability for the

  4  scope and level of service expected by the board.

  5         4.  Financial history and current financial strength

  6  and capital adequacy to provide administrative services

  7  required by the board.

  8         (v)  Establish other policies, procedures, and criteria

  9  to implement and administer the provisions of this section.

10         (g)  The board shall annually prepare or cause to be

11  prepared a report setting forth in appropriate detail an

12  accounting of the fund and a description of the financial

13  condition of the program at the close of each fiscal year.

14  Such report shall be submitted to the President of the Senate,

15  the Speaker of the House of Representatives, and members of

16  the State Board of Education on or before March 31 each year.

17  In addition, the board shall make the report available to

18  purchasers of advance payment contracts.  The board shall

19  provide to the Board of Regents and the State Board of

20  Community Colleges by March 31 each year complete advance

21  payment contract sales information including projected

22  postsecondary enrollments of qualified beneficiaries.  The

23  accounts of the fund shall be subject to annual audits by the

24  Auditor General or his or her designee.

25         (8)(h)  QUALIFIED STATE TUITION PROGRAM

26  STATUS.--Notwithstanding any other provision of this section,

27  the board may adopt rules necessary to enable the program to

28  retain its status as a "qualified state tuition prepaid

29  program" in order to maintain its tax exempt status or other

30  similar status of the program, purchasers, and qualified

31  beneficiaries under the Internal Revenue Code of 1986, as


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  1  defined in s. 220.03(1). The board shall inform purchasers of

  2  changes to the tax or securities status of contracts purchased

  3  through the program.

  4         (i)  The board shall solicit proposals for the

  5  marketing of the Florida Prepaid Postsecondary Education

  6  Expense Program pursuant to s. 287.057.  The entity designated

  7  pursuant to this paragraph shall serve as a centralized

  8  marketing agent for the program and shall be solely

  9  responsible for the marketing of the program.  Any materials

10  produced for the purpose of marketing the program shall be

11  submitted to the board for review.  No such materials shall be

12  made available to the public before the materials are approved

13  by the board.  Any educational institution may distribute

14  marketing materials produced for the program; however, all

15  such materials shall have been approved by the board prior to

16  distribution.  Neither the state nor the board shall be liable

17  for misrepresentation of the program by a marketing agent.

18         (j)  The board may establish a direct-support

19  organization which is:

20         1.  A Florida corporation, not for profit, incorporated

21  under the provisions of chapter 617 and approved by the

22  Secretary of State.

23         2.  Organized and operated exclusively to receive,

24  hold, invest, and administer property and to make expenditures

25  to or for the benefit of the program.

26         3.  An organization which the board, after review, has

27  certified to be operating in a manner consistent with the

28  goals of the program and in the best interests of the state.

29  Unless so certified, the organization may not use the name of

30  the program.

31


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  1         4.  Subject to an annual postaudit by an independent

  2  certified public accountant in accordance with rules

  3  promulgated by the board.  The annual audit shall be submitted

  4  to the State Board of Administration and the Auditor General

  5  for review.  The State Board of Administration and Auditor

  6  General shall have the authority to require and receive from

  7  the organization or its independent auditor any detail or

  8  supplemental data relative to the operation of the

  9  organization.  The identity of donors who desire to remain

10  anonymous shall be confidential and exempt from the provisions

11  of s. 119.07(1) and s. 24(a), Art. I of the State

12  Constitution, and such anonymity shall be maintained in the

13  auditor's report. Information received by the organization

14  that is otherwise confidential or exempt by law shall retain

15  such status.  Any sensitive, personal information regarding

16  contract beneficiaries, including their identities, is exempt

17  from the provisions of s. 119.07(1) and s. 24(a), Art. I of

18  the State Constitution.

19

20  The chair of the board and the executive director shall be

21  directors of the direct-support organization and shall jointly

22  name three other individuals to serve as directors of the

23  organization.

24         (k)  The board may endorse insurance coverage written

25  exclusively for the purpose of protecting advance payment

26  contracts, and the purchasers or beneficiaries thereof, which

27  may be issued in the form of a group life policy and which is

28  exempt from the provisions of part V of chapter 627.

29         (9)  PREPAID COLLEGE PLANS.--At a minimum, the board

30  shall make advance payment contracts available for two

31  independent plans to be known as the community college plan


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  1  and the university plan. The board may also make advance

  2  payment contracts available for a dormitory residence plan.

  3         (a)1.  Through the community college plan, the advance

  4  payment contract shall provide prepaid registration fees for a

  5  specified number of undergraduate semester credit hours not to

  6  exceed the average number of hours required for the conference

  7  of an associate degree. The cost of participation in the

  8  community college plan shall be based primarily on the average

  9  current and projected registration fees within the State

10  Community College System and the number of years expected to

11  elapse between the purchase of the plan on behalf of a

12  qualified beneficiary and the exercise of the benefits

13  provided in the plan by such beneficiary. Qualified

14  beneficiaries shall bear the cost of any laboratory fees

15  associated with enrollment in specific courses. Each qualified

16  beneficiary shall be classified as a resident for tuition

17  purposes, pursuant to s. 240.1201, regardless of his or her

18  actual legal residence.

19         2.  Effective July 1, 1998, the board may provide

20  advance payment contracts for additional fees delineated in s.

21  240.35, not to exceed the average number of hours required for

22  the conference of an associate degree, in conjunction with

23  advance payment contracts for registration fees. The cost of

24  purchasing such fees shall be based primarily on the average

25  current and projected fees within the State Community College

26  System and the number of years expected to elapse between the

27  purchase of the plan on behalf of the beneficiary and the

28  exercise of benefits provided in the plan by such beneficiary.

29  Community college plan contracts purchased prior to July 1,

30  1998, shall be limited to the payment of registration fees as

31  defined in subsection (2).


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  1         (b)1.  Through the university plan, the advance payment

  2  contract shall provide prepaid registration fees for a

  3  specified number of undergraduate semester credit hours not to

  4  exceed the average number of hours required for the conference

  5  of a baccalaureate degree. The cost of participation in the

  6  university plan shall be based primarily on the current and

  7  projected registration fees within the State University System

  8  and the number of years expected to elapse between the

  9  purchase of the plan on behalf of a qualified beneficiary and

10  the exercise of the benefits provided in the plan by such

11  beneficiary. Qualified beneficiaries shall bear the cost of

12  any laboratory fees associated with enrollment in specific

13  courses. Each qualified beneficiary shall be classified as a

14  resident for tuition purposes pursuant to s. 240.1201,

15  regardless of his or her actual legal residence.

16         2.  Effective July 1, 1998, the board may provide

17  advance payment contracts for additional fees delineated in s.

18  240.235(1), for a specified number of undergraduate semester

19  credit hours not to exceed the average number of hours

20  required for the conference of a baccalaureate degree, in

21  conjunction with advance payment contracts for registration

22  fees. Such contracts shall provide prepaid coverage for the

23  sum of such fees, to a maximum of 45 percent of the cost of

24  registration fees. The costs of purchasing such fees shall be

25  based primarily on the average current and projected cost of

26  these fees within the State University System and the number

27  of years expected to elapse between the purchase of the plan

28  on behalf of the qualified beneficiary and the exercise of the

29  benefits provided in the plan by such beneficiary. University

30  plan contracts purchased prior to July 1, 1998, shall be

31


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  1  limited to the payment of registration fees as defined in

  2  subsection (2).

  3         (c)  Through the dormitory residence plan, the advance

  4  payment contract may provide prepaid housing fees for a

  5  maximum of 10 semesters of full-time undergraduate enrollment

  6  in a state university. Dormitory residence plans shall be

  7  purchased in increments of 2 semesters. The cost of

  8  participation in the dormitory residence plan shall be based

  9  primarily on the average current and projected housing fees

10  within the State University System and the number of years

11  expected to elapse between the purchase of the plan on behalf

12  of a qualified beneficiary and the exercise of the benefits

13  provided in the plan by such beneficiary. Qualified

14  beneficiaries shall have the highest priority in the

15  assignment of housing within university residence halls.

16  Qualified beneficiaries shall bear the cost of any additional

17  elective charges such as laundry service or long-distance

18  telephone service. Each state university may specify the

19  residence halls or other university-held residences eligible

20  for inclusion in the plan. In addition, any state university

21  may request immediate termination of a dormitory residence

22  contract based on a violation or multiple violations of rules

23  of the residence hall or other university-held residences. In

24  the event that sufficient housing is not available for all

25  qualified beneficiaries, the board shall refund the purchaser

26  or qualified beneficiary an amount equal to the fees charged

27  for dormitory residence during that semester. If a qualified

28  beneficiary fails to be admitted to a state university or

29  chooses to attend a community college that operates one or

30  more dormitories or residency opportunities, or has one or

31  more dormitories or residency opportunities operated by the


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  1  community college direct-support organization, the qualified

  2  beneficiary may transfer or cause to have transferred to the

  3  community college, or community college direct-support

  4  organization, the fees associated with dormitory residence.

  5  Dormitory fees transferred to the community college or

  6  community college direct-support organization may not exceed

  7  the maximum fees charged for state university dormitory

  8  residence for the purposes of this section, or the fees

  9  charged for community college or community college

10  direct-support organization dormitories or residency

11  opportunities, whichever is less.

12         (10)  TRANSFER OF BENEFITS TO PRIVATE AND OUT-OF-STATE

13  COLLEGES AND UNIVERSITIES.--

14         (a)  A qualified beneficiary may apply a community

15  college plan, university plan, or dormitory residence plan

16  toward any eligible independent college or university. An

17  independent college or university which is located and

18  chartered in Florida, is not for profit, is accredited by the

19  Commission on Colleges of the Southern Association of Colleges

20  and Schools or the Accrediting Commission of the Association

21  of Independent Colleges and Schools, and which confers degrees

22  as defined in s. 246.021, shall be eligible for such

23  application. The board shall transfer, or cause to have

24  transferred, to the eligible independent college or university

25  designated by the qualified beneficiary an amount not to

26  exceed the redemption value of the advance payment contract

27  within a state postsecondary institution. In the event that

28  the cost of registration or housing fees at the independent

29  college or university is less than the corresponding fees at a

30  state postsecondary institution, the amount transferred shall

31  not exceed the actual cost of registration or housing fees. No


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  1  transfer authorized pursuant to this paragraph shall exceed

  2  the number of semester credit hours or semesters of dormitory

  3  residence contracted on behalf of a qualified beneficiary.

  4         (b)  A qualified beneficiary may apply the benefits of

  5  an advance payment contract toward an eligible out-of-state

  6  college or university. An out-of-state college or university

  7  which is not for profit and is accredited by a regional

  8  accrediting association, and which confers baccalaureate

  9  degrees, shall be eligible for such application. The board

10  shall transfer, or cause to have transferred, an amount not to

11  exceed the redemption value of the advance payment contract or

12  the original purchase price plus 5 percent compounded

13  interest, whichever is less, after assessment of a reasonable

14  transfer fee. In the event that the cost of registration or

15  housing fees charged the qualified beneficiary at the eligible

16  out-of-state college or university is less than this

17  calculated amount, the amount transferred shall not exceed the

18  actual cost of registration or housing fees. Any remaining

19  amount shall be transferred in subsequent semesters until the

20  transfer value is depleted. No transfer authorized pursuant to

21  this paragraph shall exceed the number of semester credit

22  hours or semesters of dormitory residence contracted on behalf

23  of a qualified beneficiary.

24         (11)(6)(a)  ADVANCE PAYMENT CONTRACTS; CONTENTS.--The

25  board shall construct advance payment contracts for

26  registration and may construct advance payment contracts for

27  dormitory residence as provided in accordance with the

28  provisions of this section. Advance payment contracts

29  constructed for the purposes of this section shall be exempt

30  from the provisions of chapter 517 and the Florida Insurance

31  Code. The board may request assistance from the Department of


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  1  Legal Affairs in the development of the advance payment

  2  contracts.  The contents of both Such contracts shall include,

  3  but not be limited to, the following:

  4         (a)1.  The amount of the payment or payments and the

  5  number of payments required from a purchaser on behalf of a

  6  qualified beneficiary.

  7         (b)2.  The terms and conditions under which purchasers

  8  shall remit payments, including, but not limited to, the date

  9  or dates upon which each payment shall be due.

10         (c)3.  Provisions for late payment charges and for

11  default.

12         (d)4.  Provisions for penalty fees for withdrawals from

13  the fund.

14         (e)5.  Except for an advance payment contract entered

15  into pursuant to subsection (22) paragraph (5)(j), the name

16  and date of birth of the qualified beneficiary on whose behalf

17  the contract is drawn and the terms and conditions under which

18  another person may be substituted as the qualified

19  beneficiary.

20         (f)6.  The name of any person who may terminate the

21  contract. The terms of the contract shall specify whether the

22  contract may be terminated by the purchaser, the qualified

23  beneficiary, a specific designated person, or any combination

24  of these persons.

25         (g)7.  The terms and conditions under which a contract

26  may be terminated, modified, or converted, the name of the

27  person entitled to any refund due as a result of termination

28  of the contract pursuant to such terms and conditions, and the

29  amount of refund, if any, due to the person so named.

30

31


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  1         8.  The time limitations, if any, within which the

  2  qualified beneficiary must claim his or her benefits through

  3  the program.

  4         9.  Other terms and conditions deemed by the board to

  5  be necessary or proper.

  6         (b)  In addition to the provisions of paragraph (a), an

  7  advance payment contract for registration shall include, but

  8  not be limited to, the following:

  9         (h)1.  The number of semester credit hours or semesters

10  of dormitory residence contracted by the purchaser.

11         (i)2.  The state postsecondary system toward which the

12  contracted credit hours or semesters of dormitory residence

13  will be applied.

14         (j)3.  The assumption of a contractual obligation by

15  the board to the qualified beneficiary to provide for a

16  specified number of semester credit hours of undergraduate

17  instruction at a state postsecondary institution, not to

18  exceed the average number of credit hours required for the

19  conference of the degree that corresponds to the plan

20  purchased on behalf of the qualified beneficiary or to provide

21  for a specified number of semesters of dormitory residence,

22  not to exceed the number of semesters of full-time enrollment

23  required for the conference of a baccalaureate degree.

24         (k)  Other terms and conditions deemed by the board to

25  be necessary or proper.

26         (c)  In addition to the provisions of paragraph (a), an

27  advance payment contract for dormitory residence shall

28  include, but not be limited to, the following:

29         1.  The number of semesters of dormitory residence

30  contracted by the purchaser.

31


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  1         2.  The assumption of a contractual obligation by the

  2  board to the qualified beneficiary to provide for a specified

  3  number of semesters of dormitory residence at a state

  4  university, not to exceed the maximum number of semesters of

  5  full-time enrollment required for the conference of a

  6  baccalaureate degree.

  7         (12)(d)  DURATION OF BENEFITS; ADVANCE PAYMENT

  8  CONTRACT.--An advance payment contract may provide that

  9  contracts which have not been terminated or the benefits

10  exercised within a specified period of time shall be

11  considered terminated.  Time expended by a qualified

12  beneficiary as an active duty member of any of the armed

13  services of the United States shall be added to the period of

14  time specified pursuant to this subsection paragraph.  No

15  purchaser or qualified beneficiary whose advance payment

16  contract is terminated pursuant to this subsection paragraph

17  shall be entitled to a refund.  The board shall retain any

18  moneys paid by the purchaser for an advance payment contract

19  that has been terminated in accordance with this subsection

20  paragraph.  Such moneys retained by the board are exempt from

21  chapter 717, and such retained moneys must be used by the

22  board to further the purposes of this section.

23         (13)  REFUNDS.--

24         (a)(e)1.  Except as provided in paragraphs (b) and (c),

25  no refund provided pursuant to subparagraph (a)7. shall exceed

26  the amount paid into the fund by the purchaser.  In the event

27  that an advance payment contract is converted from a

28  university to a community college registration plan, the

29  refund amount shall be reduced by the amount transferred to a

30  community college on behalf of the qualified beneficiary.

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  1  However, refunds may exceed the amount paid into the fund in

  2  the following circumstances:

  3         (b)a.  If the beneficiary is awarded a scholarship, the

  4  terms of which cover the benefits included in the advance

  5  payment contracts, moneys paid for the purchase of the advance

  6  payment contracts shall be returned to the purchaser in

  7  semester installments coinciding with the matriculation by the

  8  beneficiary in amounts of either the original purchase price

  9  plus 5 percent compounded interest, or the current rates at

10  state postsecondary institutions, whichever is less.

11         (c)b.  In the event of the death or total disability of

12  the beneficiary, moneys paid for the purchase of advance

13  payment contracts shall be returned to the purchaser together

14  with 5 percent compounded interest, or the current rates at

15  state postsecondary institutions, whichever is less.

16         (d)c.  If an advance payment contract is converted from

17  one registration plan to a plan of lesser value a university

18  plan to a community college plan or a community college plus

19  university plan, or is converted from a community college plus

20  university plan to a community college plan, the amount

21  refunded shall not exceed the difference between the amount

22  paid for the original contract and the amount that would have

23  been paid for the contract to which the plan is converted had

24  the converted plan been purchased under the same payment plan

25  at the time the original advance payment contract was

26  executed.

27         (e)2.  No refund shall be authorized through an advance

28  payment contract for any school year partially attended but

29  not completed.  For purposes of this section, a school year

30  partially attended but not completed shall mean any one

31  semester whereby the student is still enrolled at the


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  1  conclusion of the official drop-add period, but withdraws

  2  before the end of such semester. If a beneficiary does not

  3  complete a community college plan or university plan for

  4  reasons other than specified in paragraph (c) subparagraph 1.,

  5  the purchaser shall receive a refund of the amount paid into

  6  the fund for the remaining unattended years of the advance

  7  payment contract pursuant to rules promulgated by the board.

  8         (14)(f)  CONFIDENTIALITY OF ACCOUNT

  9  INFORMATION.--Information that identifies the purchasers or

10  beneficiaries of any plan promulgated under this section and

11  their advance payment account activities is exempt from the

12  provisions of s. 119.07(1).  However, the board may authorize

13  the program's records administrator to release such

14  information to a community college, college, or university in

15  which a beneficiary may enroll or is enrolled.  Community

16  colleges, colleges, and universities shall maintain such

17  information as exempt from the provisions of s. 119.07(1).

18         (7)  At a minimum, the board shall make advance payment

19  contracts available for two independent plans to be known as

20  the community college plan and the university plan. The board

21  may also make advance payment contracts available for a

22  dormitory residence plan.

23         (a)  Through the community college plan, the advance

24  payment contract shall provide prepaid registration fees for a

25  specified number of undergraduate semester credit hours not to

26  exceed the average number of hours required for the conference

27  of an associate degree.  The cost of participation in the

28  community college plan shall be based primarily on the average

29  current and projected registration fees within the State

30  Community College System and the number of years expected to

31  elapse between the purchase of the plan on behalf of a


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  1  qualified beneficiary and the exercise of the benefits

  2  provided in the plan by such beneficiary. Qualified

  3  beneficiaries shall bear the cost of any laboratory fees

  4  associated with enrollment in specific courses.  Each

  5  qualified beneficiary shall be classified as a resident for

  6  tuition purposes pursuant to s. 240.1201 regardless of his or

  7  her actual legal residence.

  8         (b)  Through the university plan, the advance payment

  9  contract shall provide prepaid registration fees for a

10  specified number of undergraduate semester credit hours not to

11  exceed the average number of hours required for the conference

12  of a baccalaureate degree.  The cost of participation in the

13  university plan shall be based primarily on the current and

14  projected registration fees within the State University System

15  and the number of years expected to elapse between the

16  purchase of the plan on behalf of a qualified beneficiary and

17  the exercise of the benefits provided in the plan by such

18  beneficiary.  Qualified beneficiaries shall bear the cost of

19  any laboratory fees associated with enrollment in specific

20  courses.  In the event that a qualified beneficiary fails to

21  be admitted to a state university or chooses to attend a

22  community college, the qualified beneficiary may convert the

23  average number of semester credit hours required for the

24  conference of an associate degree from a university plan to a

25  community college plan and may retain the remaining semester

26  credit hours in the university plan or may request a refund

27  for prepaid credit hours in excess of the average number of

28  semester credit hours required for the conference of an

29  associate degree pursuant to subparagraph (6)(a)7.  Each

30  qualified beneficiary shall be classified as a resident for

31


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  1  tuition purposes pursuant to s. 240.1201 regardless of his or

  2  her actual legal residence.

  3         (c)  Through the dormitory residence plan, the advance

  4  payment contract may provide prepaid housing fees for a

  5  maximum of 10 semesters of full-time undergraduate enrollment

  6  in a state university. Dormitory residence plans shall be

  7  purchased in increments of 2 semesters. The cost of

  8  participation in the dormitory residence plan shall be based

  9  primarily on the average current and projected housing fees

10  within the State University System and the number of years

11  expected to elapse between the purchase of the plan on behalf

12  of a qualified beneficiary and the exercise of the benefits

13  provided in the plan by such beneficiary.  Qualified

14  beneficiaries shall bear the cost of any additional elective

15  charges such as laundry service or long-distance telephone

16  service.  Each state university may specify the residence

17  halls or other university-held residences eligible for

18  inclusion in the plan. In addition, any state university may

19  request immediate termination of a dormitory residence

20  contract based on a violation or multiple violations of rules

21  of the residence hall or other university-held residences.

22  Qualified beneficiaries shall have the highest priority in the

23  assignment of housing within university residence halls.  In

24  the event that sufficient housing is not available for all

25  qualified beneficiaries, the board shall refund the purchaser

26  or qualified beneficiary an amount equal to the fees charged

27  for dormitory residence during that semester.  If a qualified

28  beneficiary fails to be admitted to a state university or

29  chooses to attend a community college that operates one or

30  more dormitories or residency opportunities, or has one or

31  more dormitories or residency opportunities operated by the


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  1  community college direct-support organization, the qualified

  2  beneficiary may transfer or cause to have transferred to the

  3  community college, or community college direct-support

  4  organization, the fees associated with dormitory residence.

  5  Dormitory fees transferred to the community college or

  6  community college direct-support organization may not exceed

  7  the maximum fees charged for state university dormitory

  8  residence for the purposes of this section, or the fees

  9  charged for community college or community college

10  direct-support organization dormitories or residency

11  opportunities, whichever is less.

12         (d)  A qualified beneficiary may apply a community

13  college plan, university plan, or dormitory residence plan

14  toward any eligible independent college or university.  An

15  independent college or university which is located and

16  chartered in Florida, is not for profit, is accredited by the

17  Commission on Colleges of the Southern Association of Colleges

18  and Schools or the Accrediting Commission of the Association

19  of Independent Colleges and Schools, and which confers degrees

20  as defined in s. 246.021 shall be eligible for such

21  application.  The board shall transfer or cause to have

22  transferred to the eligible independent college or university

23  designated by the qualified beneficiary an amount not to

24  exceed the redemption value of the advance payment contract

25  within a state postsecondary institution.  In the event that

26  the cost of registration or housing fees at the independent

27  college or university is less than the corresponding fees at a

28  state postsecondary institution, the amount transferred shall

29  not exceed the actual cost of registration or housing fees.

30  No transfer authorized pursuant to this paragraph shall exceed

31


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  1  the number of semester credit hours or semesters of dormitory

  2  residence contracted on behalf of a qualified beneficiary.

  3         (e)  A qualified beneficiary may apply the benefits of

  4  an advance payment contract toward an eligible out-of-state

  5  college or university. An out-of-state college or university

  6  which is not for profit, is accredited by a regional

  7  accrediting association, and which confers baccalaureate

  8  degrees shall be eligible for such application.  The board

  9  shall transfer, or cause to have transferred, an amount not to

10  exceed the redemption value of the advance payment contract or

11  the original purchase price plus 5 percent compounded

12  interest, whichever is less, after assessment of a reasonable

13  transfer fee. In the event that the cost of registration or

14  housing fees charged the qualified beneficiary at the eligible

15  out-of-state college or university is less than this

16  calculated amount, the amount transferred shall not exceed the

17  actual cost of registration or housing fees.  Any remaining

18  amount shall be transferred in subsequent semesters until the

19  transfer value is depleted.  No transfer authorized pursuant

20  to this paragraph shall exceed the number of semester credit

21  hours or semesters of dormitory residence contracted on behalf

22  of a qualified beneficiary.

23         (8)  The board shall solicit proposals for the

24  operation of the Florida Prepaid Postsecondary Education

25  Expense Program pursuant to s. 287.057, through which the

26  board shall contract for the services of a records

27  administrator, a trustee services firm, and one or more

28  product providers.

29         (a)  The records administrator shall be the entity

30  designated by the board to conduct the daily operations of the

31  program on behalf of the board. The goals of the board in


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  1  selecting a records administrator shall be to provide all

  2  purchasers with the most secure, well-diversified, and

  3  beneficially administered postsecondary education expense plan

  4  possible, to allow all qualified firms interested in providing

  5  such services equal consideration, and to provide such

  6  services to the state at no cost and to the purchasers at the

  7  lowest cost possible. Evaluations of proposals submitted

  8  pursuant to this paragraph shall include, but not be limited

  9  to, the following criteria:

10         1.  Fees and other costs charged to purchasers that

11  affect account values or operational costs related to the

12  program.

13         2.  Past experience in records administration and

14  current ability to provide timely and accurate service in the

15  areas of records administration, audit and reconciliation,

16  plan communication, participant service, and complaint

17  resolution.

18         3.  Sufficient staff and computer capability for the

19  scope and level of service expected by the board.

20         4.  Financial history and current financial strength

21  and capital adequacy to provide administrative services

22  required by the board.

23         (b)  The trustee services firm shall be the entity

24  designated by the board to select and supervise investment

25  programs on behalf of the board. The goals of the board in

26  selecting a trustee services firm shall be to obtain the

27  highest standards of professional trustee services, to allow

28  all qualified firms interested in providing such services

29  equal consideration, and to provide such services to the state

30  at no cost and to the purchasers at the lowest cost possible.

31  The trustee services firm shall agree to meet the obligations


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  1  of the board to qualified beneficiaries if moneys in the fund

  2  fail to offset the obligations of the board as a result of

  3  imprudent selection or supervision of investment programs by

  4  such firm.  Evaluations of proposals submitted pursuant to

  5  this paragraph shall include, but not be limited to, the

  6  following criteria:

  7         1.  Adequacy of trustee services for supervision and

  8  management of the program, including current operations and

  9  staff organization and commitment of management to the

10  proposal.

11         2.  Capability to execute program responsibilities

12  within time and regulatory constraints.

13         3.  Past experience in trustee services and current

14  ability to maintain regular and continuous interactions with

15  the board, records administrator, and product provider.

16         4.  The minimum purchaser participation assumed within

17  the proposal and any additional requirements of purchasers.

18         5.  Adequacy of technical assistance and services

19  proposed for staff.

20         6.  Adequacy of a management system for evaluating and

21  improving overall trustee services to the program.

22         7.  Adequacy of facilities, equipment, and electronic

23  data processing services.

24         8.  Detailed projections of administrative costs,

25  including the amount and type of insurance coverage, and

26  detailed projections of total costs.

27         (c)1.  The product providers shall be the entities

28  designated by the board to develop investment portfolios on

29  behalf of the board to achieve the purposes of this section.

30  Product providers shall be limited to authorized insurers as

31  defined in s. 624.09, banks as defined in s. 658.12,


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  1  associations as defined in s. 665.012, authorized Securities

  2  and Exchange Commission investment advisers, and investment

  3  companies as defined in the Investment Company Act of 1940.

  4  All product providers shall have their principal place of

  5  business and corporate charter located and registered in the

  6  United States. In addition, each product provider shall agree

  7  to meet the obligations of the board to qualified

  8  beneficiaries if moneys in the fund fail to offset the

  9  obligations of the board as a result of imprudent investing by

10  such provider. Each authorized insurer shall evidence superior

11  performance overall on an acceptable level of surety in

12  meeting its obligations to its policyholders and other

13  contractual obligations.  Only qualified public depositories

14  approved by the State Insurance Commissioner and Treasurer

15  shall be eligible for board consideration.  Each investment

16  company shall provide investment plans as specified within the

17  request for proposals.

18         2.  The goals of the board in selecting a product

19  provider company shall be to provide all purchasers with the

20  most secure, well-diversified, and beneficially administered

21  postsecondary education expense plan possible, to allow all

22  qualified firms interested in providing such services equal

23  consideration, and to provide such services to the state at no

24  cost and to the purchasers at the lowest cost possible.

25  Evaluations of proposals submitted pursuant to this paragraph

26  shall include, but not be limited to, the following criteria:

27         a.  Fees and other costs charged to purchasers that

28  affect account values or operational costs related to the

29  program.

30         b.  Past and current investment performance, including

31  investment and interest rate history, guaranteed minimum rates


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  1  of interest, consistency of investment performance, and any

  2  terms and conditions under which moneys are held.

  3         c.  Past experience and ability to provide timely and

  4  accurate service in the areas of records administration,

  5  benefit payments, investment management, and complaint

  6  resolution.

  7         d.  Financial history and current financial strength

  8  and capital adequacy to provide products, including operating

  9  procedures and other methods of protecting program assets.

10         (15)(9)  OBLIGATIONS OF BOARD; PAYMENT.--The state

11  shall agree to meet the obligations of the board to qualified

12  beneficiaries if moneys in the fund fail to offset the

13  obligations of the board. The Legislature shall appropriate to

14  the Florida Prepaid College Postsecondary Education Expense

15  Trust Fund the amount necessary to meet the obligations of the

16  board to qualified beneficiaries.

17         (16)(10)  ASSETS OF THE FUND; EXPENDITURE

18  PRIORITY.--The assets of the fund shall be maintained,

19  invested, and expended solely for the purposes of this section

20  and shall not be loaned, transferred, or otherwise used by the

21  state for any purpose other than the purposes of this section.

22  This subsection shall not be construed to prohibit the board

23  from investing in, by purchase or otherwise, bonds, notes, or

24  other obligations of the state or an agency or instrumentality

25  of the state. Unless otherwise specified by the board, assets

26  of the fund shall be expended in the following order of

27  priority:

28         (a)  To make payments to state postsecondary

29  institutions on behalf of qualified beneficiaries.

30         (b)  To make refunds upon termination of advance

31  payment contracts.


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  1         (c)  To pay the costs of program administration and

  2  operations.

  3         (17)(11)  EXEMPTION FROM CLAIMS OF CREDITORS.--Moneys

  4  paid into or out of the fund by or on behalf of a purchaser or

  5  qualified beneficiary of an advance payment contract made

  6  under this section, which contract has not been terminated,

  7  are exempt, as provided by s. 222.22, from all claims of

  8  creditors of the purchaser or the beneficiary. Neither moneys

  9  paid into the program nor benefits accrued through the program

10  may be pledged for the purpose of securing a loan.

11         (18)(12)  PAYROLL DEDUCTION AUTHORITY.--The state or

12  any state agency, county, municipality, or other political

13  subdivision may, by contract or collective bargaining

14  agreement, agree with any employee to remit payments toward

15  advance payment contracts through payroll deductions made by

16  the appropriate officer or officers of the state, state

17  agency, county, municipality, or political subdivision.  Such

18  payments shall be held and administered in accordance with

19  this section.

20         (19)(13)  DISCLAIMER.--Nothing in this section shall be

21  construed as a promise or guarantee that a qualified

22  beneficiary will be admitted to a state postsecondary

23  institution or to a particular state postsecondary

24  institution, will be allowed to continue enrollment at a state

25  postsecondary institution after admission, or will be

26  graduated from a state postsecondary institution.

27         (20)(14)  PROGRAM TERMINATION.--In the event that the

28  state determines the program to be financially infeasible, the

29  state may discontinue the provision of the program.  Any

30  qualified beneficiary who has been accepted by and is enrolled

31  or is within 5 years of enrollment in an eligible independent


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  1  college or university or state postsecondary institution shall

  2  be entitled to exercise the complete benefits for which he or

  3  she has contracted.  All other contract holders shall receive

  4  a refund, pursuant to subparagraph (6)(a)7., of the amount

  5  paid in and an additional amount in the nature of interest at

  6  a rate that corresponds, at a minimum, to the prevailing

  7  interest rates for savings accounts provided by banks and

  8  savings and loan associations.

  9         (21)  ANNUAL REPORT.--The board shall annually prepare

10  or cause to be prepared a report setting forth in appropriate

11  detail an accounting of the fund and a description of the

12  financial condition of the program at the close of each fiscal

13  year. Such report shall be submitted to the President of the

14  Senate, the Speaker of the House of Representatives, and

15  members of the State Board of Education on or before March 31

16  each year. In addition, the board shall make the report

17  available to purchasers of advance payment contracts. The

18  board shall provide to the Board of Regents and the State

19  Board of Community Colleges, by March 31 each year, complete

20  advance payment contract sales information, including

21  projected postsecondary enrollments of qualified

22  beneficiaries. The accounts of the fund shall be subject to

23  annual audits by the Auditor General or his or her designee.

24         (22)  DIRECT-SUPPORT ORGANIZATION; AUTHORITY.--

25         (a)  The board may establish a direct-support

26  organization which is:

27         1.  A Florida corporation, not for profit, incorporated

28  under the provisions of chapter 617 and approved by the

29  Secretary of State.

30

31


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  1         2.  Organized and operated exclusively to receive,

  2  hold, invest, and administer property and to make expenditures

  3  to or for the benefit of the program.

  4         3.  An organization which the board, after review, has

  5  certified to be operating in a manner consistent with the

  6  goals of the program and in the best interests of the state.

  7  Unless so certified, the organization may not use the name of

  8  the program.

  9         4.  Subject to an annual postaudit by an independent

10  certified public accountant in accordance with rules

11  promulgated by the board. The annual audit shall be submitted

12  to the State Board of Administration and the Auditor General

13  for review. The State Board of Administration and Auditor

14  General shall have the authority to require and receive from

15  the organization or its independent auditor any detail or

16  supplemental data relative to the operation of the

17  organization. The identity of donors who desire to remain

18  anonymous shall be confidential and exempt from the provisions

19  of s. 119.07(1) and s. 24(a), Art. I of the State

20  Constitution, and such anonymity shall be maintained in the

21  auditor's report. Information received by the organization

22  that is otherwise confidential or exempt by law shall retain

23  such status. Any sensitive, personal information regarding

24  contract beneficiaries, including their identities, is exempt

25  from the provisions of s. 119.07(1) and s. 24(a), Art. I of

26  the State Constitution.

27         (b)  The chair and the executive director of the board

28  shall be directors of the direct-support organization and

29  shall jointly name three other individuals to serve as

30  directors of the organization.

31


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  1         Section 50.  Section 222.22, Florida Statutes, is

  2  amended to read:

  3         222.22  Exemption of moneys in the Prepaid

  4  Postsecondary Education Expense Trust Fund from legal

  5  process.--Moneys paid into or out of the Florida Prepaid

  6  College Postsecondary Education Expense Trust Fund by or on

  7  behalf of a purchaser or qualified beneficiary pursuant to an

  8  advance payment contract made under s. 240.551, which contract

  9  has not been terminated, are not liable to attachment,

10  garnishment, or legal process in the state in favor of any

11  creditor of the purchaser or beneficiary of such advance

12  payment contract.

13         Section 51.  Subsection (2) of section 732.402, Florida

14  Statutes, is amended to read:

15         732.402  Exempt property.--

16         (2)  Exempt property shall consist of:

17         (a)  Household furniture, furnishings, and appliances

18  in the decedent's usual place of abode up to a net value of

19  $10,000 as of the date of death.; and

20         (b)  All automobiles held in the decedent's name and

21  regularly used by the decedent or members of the decedent's

22  immediate family as their personal automobiles.

23         (c)  Florida Prepaid College Program contracts

24  purchased pursuant to s. 240.551.

25         Section 52.  For the purpose of incorporating the

26  amendment to s. 732.402, Florida Statutes, in references

27  thereto, subsection (13) of section 731.201 and subsection (1)

28  of section 735.301, Florida Statutes, are reenacted to read:

29         731.201  General definitions.--Subject to additional

30  definitions in subsequent chapters that are applicable to

31


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  1  specific chapters or parts, and unless the context otherwise

  2  requires, in this code and chapters 737, 738, and 744:

  3         (13)  "Exempt property" means the property of a

  4  decedent's estate which is described in s. 732.402.

  5         735.301  Disposition without administration.--

  6         (1)  No administration shall be required or formal

  7  proceedings instituted upon the estate of a decedent leaving

  8  only personal property exempt under the provisions of s.

  9  732.402, personal property exempt from the claims of creditors

10  under the Constitution of Florida, and nonexempt personal

11  property the value of which does not exceed the sum of the

12  amount of preferred funeral expenses and reasonable and

13  necessary medical and hospital expenses of the last 60 days of

14  the last illness.

15         Section 53.  Effective January 1, 1999, section

16  240.207, Florida Statutes, is amended to read:

17         240.207  Board of Regents; appointment of members;

18  qualifications and terms of office.--

19         (1)  The Board of Regents shall consist of the

20  Commissioner of Education and 13 12 citizens of this state who

21  shall be selected from the state at large, representative of

22  the geographical areas of the state; who shall have been

23  residents and citizens thereof for a period of at least 10

24  years prior to their appointment (one of whom shall be a

25  member registered as a full-time student in the State

26  University System and who shall have been a resident of this

27  state for at least 5 years prior to appointment in lieu of the

28  10 years required of other members); and who shall be

29  appointed by the Governor, approved by three members of the

30  Cabinet, and confirmed by the Senate.  However, no appointee

31  shall take office until after his or her appointment has been


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  1  approved by three members of the Cabinet.  The State Board of

  2  Education shall develop rules and procedures for review and

  3  approval of the appointees.  Except for the Commissioner of

  4  Education and except for the full-time student member, who

  5  shall serve for 1 year, the terms of office for the members of

  6  the Board of Regents appointed after the effective date of

  7  this act shall be 4 6 years and until their successors are

  8  appointed and qualified, except in case of an appointment to

  9  fill a vacancy, in which case the appointment shall be for the

10  unexpired term, and except as in this section otherwise

11  provided.  No member shall be selected from any county to

12  serve with any other member from the same county, except that

13  not more than two members may be selected from a county which

14  has a population in excess of 900,000, and with the exceptions

15  of the student member, who shall be selected at large, and the

16  Commissioner of Education. The Governor shall fill all

17  vacancies, subject to the above approval and confirmation,

18  that may at any time occur on the board.

19         (2)  Members may be removed for cause at any time upon

20  the concurrence of a majority of the members of the State

21  Board of Education.

22         (3)  To create an orderly succession of Regents and the

23  appointment of two Regents each year, one additional Regent

24  shall be appointed in 1991 to serve a 6-year term, and one

25  additional Regent shall be appointed in 1992 to serve a 6-year

26  term.  For the four seats with terms ending in 1993, the

27  Governor shall make one appointment for a 3-year term and two

28  appointments for regular 6-year terms.  For 1 year, from

29  January 1992 to January 1993, there shall be a total of 15

30  Regents.  All the members of the Board of Regents serving on

31


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  1  May 3, 1991, shall complete their regular terms, as prescribed

  2  by the Secretary of State.

  3         Section 54.  Subsections (2) and paragraphs (b) and (e)

  4  of subsection (3) of section 240.209, Florida Statutes, are

  5  amended to read:

  6         240.209  Board of Regents; powers and duties.--

  7         (2)  The Board of Regents shall appoint a Chancellor to

  8  serve at its pleasure who shall perform such duties as are

  9  assigned to him or her by the board.  The board shall fix the

10  compensation and other conditions of employment for the

11  Chancellor.  The board shall also provide for the compensation

12  and other conditions of employment for employees necessary to

13  assist the board and the Chancellor in the performance of

14  their duties. The Chancellor shall be the chief administrative

15  officer of the board and shall be responsible for appointing

16  all employees of the board who shall serve under his or her

17  direction and control.  The Chancellor must shall be a person

18  qualified by training and experience to understand the

19  problems and needs of the state in the field of postsecondary

20  education.  Search committee activities for the selection of

21  the Chancellor up to the point of transmitting a list of

22  nominees to the Board of Regents shall be confidential and

23  exempt from the provisions  of ss. 119.07(1) and 286.011.

24         (3)  The board shall:

25         (b)  Appoint or remove the president of each university

26  in accordance with procedures and rules adopted by the Board

27  of Regents.  The board may appoint a search committee to

28  assist in evaluating presidential candidates. Each appointment

29  of a university president shall be conducted in accordance

30  with the provisions of ss. 119.07 and 286.011. The board shall

31  determine the compensation and other conditions of employment


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  1  for each president. The board shall not provide a tenured

  2  faculty appointment to any president who is removed through

  3  termination by the board or resignation tendered at the

  4  request of the board.

  5         (e)  Establish student fees.

  6         1.  By no later than December 1 of each year, the board

  7  shall raise the systemwide standard for resident undergraduate

  8  matriculation and financial aid fees for the subsequent fall

  9  term, up to but no more than 25 percent of the prior year's

10  cost of undergraduate programs. In implementing this

11  paragraph, fees charged for graduate, medical, veterinary, and

12  dental programs may be increased by the Board of Regents in

13  the same percentage as the increase in fees for resident

14  undergraduates. However, in the absence of legislative action

15  to the contrary in an appropriations act, the board may not

16  approve annual fee increases for resident students in excess

17  of 10 percent. The sum of nonresident student matriculation

18  and tuition fees must be sufficient to defray the full cost of

19  undergraduate education. Graduate, medical, veterinary, and

20  dental fees charged to nonresidents may be increased by the

21  board in the same percentage as the increase in fees for

22  nonresident undergraduates. However, in implementing this

23  policy and in the absence of legislative action to the

24  contrary in an appropriations act, annual fee increases for

25  nonresident students may not exceed 25 percent. In the absence

26  of legislative action to the contrary in the General

27  Appropriations Act, the fees shall go into effect for the

28  following fall term.

29         2.  When the appropriations act requires a new fee

30  schedule, the board shall establish a systemwide standard fee

31  schedule required to produce the total fee revenue established


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  1  in the appropriations act based on the product of the assigned

  2  enrollment and the fee schedule. The board may approve the

  3  expenditure of any fee revenues resulting from the product of

  4  the fee schedule adopted pursuant to this section and the

  5  assigned enrollment.

  6         3.  Upon provision of authority in a General

  7  Appropriations Act to spend revenue raised pursuant to this

  8  section, the board shall approve a university request to

  9  implement a matriculation and out-of-state tuition fee

10  schedule which is calculated to generate revenue which varies

11  no more than 10 percent from the standard fee revenues

12  authorized through an appropriations act. In implementing an

13  alternative fee schedule, the increase in cost to a student

14  taking 15 hours in one term shall be limited to 5 percent.

15  Matriculation and out-of-state tuition fee revenues generated

16  as a result of this provision are to be expended for

17  implementing a plan for achieving accountability goals adopted

18  pursuant to s. 240.214(2) and for implementing a Board of

19  Regents-approved plan to contain student costs by reducing the

20  time necessary for graduation without reducing the quality of

21  instruction. The plans shall be recommended by a

22  universitywide committee, at least one-half of whom are

23  students appointed by the student body president. A

24  chairperson, appointed jointly by the university president and

25  the student body president, shall vote only in the case of a

26  tie.

27         4.  The board is authorized to collect for financial

28  aid purposes an amount not to exceed 5 percent of the student

29  tuition and matriculation fee per credit hour. The revenues

30  from fees are to remain at each campus and replace existing

31  financial aid fees. Such funds shall be disbursed to students


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    ENROLLED

    1998 Legislature                     HB 4259, Second Engrossed



  1  as quickly as possible. The board shall specify specific

  2  limits on the percent of the fees collected in a fiscal year

  3  which may be carried forward unexpended to the following

  4  fiscal year. A minimum of 50 percent of funds from the student

  5  financial aid fee shall be used to provide financial aid based

  6  on absolute need. A student who has received an award prior to

  7  July 1, 1984, shall have his or her eligibility assessed on

  8  the same criteria that was used at the time of his or her

  9  original award.

10         5.  The board may recommend to the Legislature an

11  appropriate systemwide standard matriculation and tuition fee

12  schedule.

13         6.  The Education and General Student and Other Fees

14  Trust Fund is hereby created, to be administered by the

15  Department of Education.  Funds shall be credited to the trust

16  fund from student fee collections and other miscellaneous fees

17  and receipts. The purpose of the trust fund is to support the

18  instruction and research missions of the State University

19  System. Notwithstanding the provisions of s. 216.301, and

20  pursuant to s. 216.351, any balance in the trust fund at the

21  end of any fiscal year shall remain in the trust fund and

22  shall be available for carrying out the purposes of the trust

23  fund.

24         Section 55.  Section 240.136, Florida Statutes, is

25  created to read:

26         240.136  Suspension and removal from office of elected

27  student government officials; referendum.--Each state

28  university and community college student government

29  association shall establish a process within 60 days of this

30  act becoming a law to provide for the removal from office of

31  any elected student government official who has been convicted


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  1  of a violation of criminal law or has been found civilly

  2  liable for an act of moral turpitude, after all available

  3  rights of judicial appeal have been exercised or waived or

  4  have expired. The process shall include a procedure for the

  5  immediate suspension of the student government official from

  6  elected office following the conviction or civil finding and

  7  during any appeal, and shall provide for the temporary

  8  successor to the subject office pending completion of any

  9  appeal. The process must also include a procedure for

10  registered students to petition for a referendum recommending

11  to the student government association the removal of a student

12  official from elected office. The referendum must be held

13  within 60 days of filing of the petition. The recommendation

14  to remove the subject official from elected office shall be

15  made by majority vote of the students participating in the

16  referendum. The action of a student government association

17  under this section shall be subject to an appeal to the

18  university or community college president or designee.

19         Section 56.  Except as otherwise provided in this act,

20  this act shall take effect July 1, 1998.

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