House Bill 2213

    Florida House of Representatives - 1999                HB 2213

        By the Committee on Education Appropriations and
    Representative Wise





  1                      A bill to be entitled

  2         An act relating to trust funds; creating s.

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

  4         Guaranty Administrative Fund within the

  5         Department of Education; providing for sources

  6         of funds and purposes; exempting the fund from

  7         various service charges; providing for annual

  8         carryforward of funds; providing for future

  9         review and termination or re-creation of the

10         fund; providing for transfer of certain funds

11         to the fund; providing an effective date.

12

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

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15         Section 1.  Section 240.4595, Florida Statutes, is

16  created to read:

17         240.4595  Student Loan Guaranty Administrative Fund.--

18         (1)  The Student Loan Guaranty Administrative Fund is

19  hereby created, to be administered by the Department of

20  Education. Funds shall be credited to the fund pursuant to the

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

22  and issuance fees, administrative cost allowances, account

23  maintenance fees, default aversion fees, amounts remaining

24  from collection of defaulted loans, amounts borrowed from the

25  Student Loan Guaranty Reserve Fund, and other amounts

26  specified in federal regulation. The purpose of the fund is to

27  segregate funds used for administration of the guaranteed

28  student loan program from the reserve funds used to guarantee

29  student loans contained in the Student Loan Guaranty Reserve

30  Fund. The fund is exempt from the service charges imposed by

31  s. 215.20.

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






    Florida House of Representatives - 1999                HB 2213

    609-154-99






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

  2  pursuant to s. 216.351, any balance in the fund at the end of

  3  any fiscal year shall remain in the fund at the end of the

  4  year and shall be available for carrying out the purposes of

  5  the fund.

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

  7  III of the State Constitution, the fund shall, unless

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

  9  prior to its scheduled termination, the fund shall be reviewed

10  as provided in s. 215.3206(1) and (2).

11         Section 2.  Funds for administration of the guaranteed

12  student loan program pursuant to the Higher Education Act of

13  1965, as amended, shall be transferred from the Student Loan

14  Guaranty Reserve Fund to the Student Loan Guaranty

15  Administrative Fund on July 1, 1999.

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

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18            *****************************************

19                          HOUSE SUMMARY

20
      Creates the Student Loan Guaranty Administrative Fund
21    within the Department of Education. Provides for sources
      of funds and purposes. Exempts the fund from various
22    service charges. Provides for annual carryforward of
      funds. Provides for future review and termination or
23    re-creation of the fund. Provides for transfer of funds
      for administration of the guaranteed student loan program
24    from the Student Loan Guaranty Reserve Fund to the fund.

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