Senate Bill 1670er

CODING: Words stricken are deletions; words underlined are additions.





    ENROLLED

    1999 Legislature                        SB 1670, 1st Engrossed



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  2         An act relating to trust funds; creating s.

  3         240.4595, F.S.; creating the Student Loan

  4         Operating Trust Fund within the Department of

  5         Education; providing for sources of funds and

  6         purposes; exempting the trust fund from various

  7         service charges; providing for annual

  8         carryforward of funds; providing for future

  9         review and termination or re-creation of the

10         trust fund; providing for transfer of certain

11         funds to the trust fund; providing an effective

12         date.

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

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16         Section 1.  Section 240.4595, Florida Statutes, is

17  created to read:

18         240.4595  Student Loan Operating Trust Fund.--

19         (1)  The Student Loan Operating Trust Fund is hereby

20  created, to be administered by the Department of Education.

21  Funds shall be credited to the trust fund pursuant to the

22  Higher Education Act of 1965, as amended, from loan processing

23  and issuance fees, administrative cost allowances, account

24  maintenance fees, default aversion fees, amounts remaining

25  from collection of defaulted loans, amounts borrowed from the

26  Student Loan Guaranty Reserve Fund, and other amounts

27  specified in federal regulation. The purpose of the trust fund

28  is to segregate funds used for administration of the

29  guaranteed student loan program from the reserve funds used to

30  guarantee student loans contained in the Student Loan Guaranty

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CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1999 Legislature                        SB 1670, 1st Engrossed



  1  Reserve Fund. The fund is exempt from the service charges

  2  imposed by s. 215.20.

  3         (2)  Notwithstanding the provisions of s. 216.301 and

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

  5  end of any fiscal year shall remain in the trust fund at the

  6  end of the year and shall be available for carrying out the

  7  purposes of the trust fund.

  8         (3)  Pursuant to the provisions of s. 19(f)(2), Art.

  9  III of the State Constitution, the trust fund shall, unless

10  terminated sooner, be terminated on July 1, 2003. However,

11  prior to its scheduled termination, the trust fund shall be

12  reviewed as provided in s. 215.3206(1) and (2).

13         Section 2.  Funds for administration of the guaranteed

14  student loan program pursuant to the Higher Education Act of

15  1965, as amended, shall be transferred from the Student Loan

16  Guaranty Reserve Fund to the Student Loan Operating Trust Fund

17  on July 1, 1999.

18         Section 3.  This act shall take effect July 1, 1999.

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