Senate Bill 0288

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    Florida Senate - 1999                                   SB 288

    By Senator Lee





    23-311A-99

  1                      A bill to be entitled

  2         An act relating to postsecondary education;

  3         amending s. 240.551, F.S.; providing for the

  4         transfer of Florida Prepaid College Program

  5         benefits to certain applied technology diploma

  6         programs and vocational certificate programs;

  7         allowing the Florida Prepaid College Board to

  8         permit direct-support organizations established

  9         under this section to use the property,

10         facilities, and personal services of the board;

11         providing for such direct-support organizations

12         to invest funds with the moneys invested under

13         the Florida Prepaid College Trust Fund;

14         providing an effective date.

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

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18         Section 1.  Subsection (10) of section 240.551, Florida

19  Statutes, 1998 Supplement, is amended, and paragraph (c) is

20  added to subsection (22) of that section, to read:

21         240.551  Florida Prepaid College Program.--

22         (10)  TRANSFER OF BENEFITS TO PRIVATE AND OUT-OF-STATE

23  COLLEGES AND UNIVERSITIES AND TO AREA TECHNICAL CENTERS.--A

24  qualified beneficiary may apply the benefits of an advance

25  payment contract toward:

26         (a)  A qualified beneficiary may apply a community

27  college plan, university plan, or dormitory residence plan

28  toward Any eligible independent college or university. An

29  independent college or university that which is located and

30  chartered in Florida, that is not for profit, that is

31  accredited by the Commission on Colleges of the Southern

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    Florida Senate - 1999                                   SB 288
    23-311A-99




  1  Association of Colleges and Schools or the Accrediting

  2  Commission of the Association of Independent Colleges and

  3  Schools, and that which confers degrees as defined in s.

  4  246.021, is shall be eligible for such application. The board

  5  shall transfer, or cause to have transferred, to the eligible

  6  independent college or university designated by the qualified

  7  beneficiary an amount not to exceed the redemption value of

  8  the advance payment contract within a state postsecondary

  9  institution. If In the event that the cost of registration or

10  housing fees at the independent college or university is less

11  than the corresponding fees at a state postsecondary

12  institution, the amount transferred shall not exceed the

13  actual cost of registration or housing fees. A No transfer

14  authorized under pursuant to this paragraph may not shall

15  exceed the number of semester credit hours or semesters of

16  dormitory residence contracted on behalf of a qualified

17  beneficiary.

18         (b)  A qualified beneficiary may apply the benefits of

19  an advance payment contract toward An eligible out-of-state

20  college or university. An out-of-state college or university

21  that which is not for profit, that and is accredited by the

22  commission on colleges of a regional accrediting association,

23  and that which confers baccalaureate degrees is, shall be

24  eligible for such application. The board shall transfer, or

25  cause to have transferred, an amount not to exceed the

26  redemption value of the advance payment contract or the

27  original purchase price plus 5 percent compounded interest,

28  whichever is less, after assessment of a reasonable transfer

29  fee. If In the event that the cost of registration or housing

30  fees charged the qualified beneficiary at the eligible

31  out-of-state college or university is less than this

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    Florida Senate - 1999                                   SB 288
    23-311A-99




  1  calculated amount, the amount transferred shall not exceed the

  2  actual cost of registration or housing fees. Any remaining

  3  amount shall be transferred in subsequent semesters until the

  4  transfer value is depleted. A No transfer authorized under

  5  pursuant to this paragraph may not shall exceed the number of

  6  semester credit hours or semesters of dormitory residence

  7  contracted on behalf of a qualified beneficiary.

  8         (c)  An applied technology diploma program or

  9  vocational certificate program conducted by a community

10  college listed in s. 240.3031 or an area technical center

11  operated by a district school board. The board shall transfer

12  or cause to be transferred to the community college or area

13  technical center designated by the qualified beneficiary an

14  amount not to exceed the redemption value of the advance

15  payment contract within a state postsecondary institution. If

16  the cost of the fees charged by the college or center, as

17  authorized in s. 239.117, is less than the corresponding fees

18  at a state postsecondary institution, the amount transferred

19  may not exceed the actual cost of the fees. A transfer

20  authorized under this paragraph may not exceed the number of

21  semester credit hours contracted on behalf of a qualified

22  beneficiary.

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24  Notwithstanding any other provision in this section, an

25  institution must be an "eligible educational institution"

26  under section 529 of the Internal Revenue Code to be eligible

27  for the transfer of advance payment contract benefits.

28         (22)  DIRECT-SUPPORT ORGANIZATION; AUTHORITY.--

29         (c)  The Florida Prepaid College Board may permit the

30  use of program property, facilities, and personal services by

31  a direct-support organization established under this section.

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    Florida Senate - 1999                                   SB 288
    23-311A-99




  1  The Florida Prepaid College Board shall prescribe, by rule,

  2  the conditions with which the direct-support organization must

  3  comply in order to use the property, facilities, and personal

  4  services of the board. The direct-support organization may

  5  invest funds for its accounts with the funds invested under

  6  subsection (6).

  7         Section 2.  This act shall take effect July 1, 1999.

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10                          SENATE SUMMARY

11    Allows benefits under the Florida Prepaid College Program
      to be transferred to certain applied technology diploma
12    programs and vocational certificate programs. Allows the
      Florida Prepaid College Board to permit direct-support
13    organizations established under s. 240.551, F.S., to use
      the property, facilities, and personal services of the
14    board. Allows such direct-support organizations to invest
      funds with the moneys invested under the Florida Prepaid
15    College Trust Fund.

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