Senate Bill 0288e1

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    CS for SB 288                            First Engrossed (ntc)



  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         requiring the direct-support organization to

  8         operate under written contract with the board;

  9         providing contract requirements; requiring an

10         annual financial and compliance audit; allowing

11         the Florida Prepaid College Board to permit

12         direct-support organizations established under

13         this section to use the property, facilities,

14         and personal services of the board; providing

15         for such direct-support organizations to invest

16         funds with the moneys invested under the

17         Florida Prepaid College Trust Fund; providing

18         an effective date.

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

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22         Section 1.  Subsections (10) and (22) of section

23  240.551, Florida Statutes, 1998 Supplement, are amended to

24  read:

25         240.551  Florida Prepaid College Program.--

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

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

28  qualified beneficiary may apply the benefits of an advance

29  payment contract toward:

30         (a)  A qualified beneficiary may apply a community

31  college plan, university plan, or dormitory residence plan


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    CS for SB 288                            First Engrossed (ntc)



  1  toward Any eligible independent college or university. An

  2  independent college or university that which is located and

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

  4  accredited by the Commission on Colleges of the Southern

  5  Association of Colleges and Schools or the Accrediting

  6  Commission of the Association of Independent Colleges and

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

  8  246.021, is shall be eligible for such application. The board

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

10  independent college or university designated by the qualified

11  beneficiary an amount not to exceed the redemption value of

12  the advance payment contract within a state postsecondary

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

14  housing fees at the independent college or university is less

15  than the corresponding fees at a state postsecondary

16  institution, the amount transferred shall not exceed the

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

18  authorized under pursuant to this paragraph may not shall

19  exceed the number of semester credit hours or semesters of

20  dormitory residence contracted on behalf of a qualified

21  beneficiary.

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

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

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

25  that which is not for profit and is accredited by the

26  commission on colleges of a regional accrediting association,

27  and that which confers baccalaureate degrees, is shall be

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

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

30  redemption value of the advance payment contract or the

31  original purchase price plus 5 percent compounded interest,


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    CS for SB 288                            First Engrossed (ntc)



  1  whichever is less, after assessment of a reasonable transfer

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

  3  fees charged the qualified beneficiary at the eligible

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

  5  calculated amount, the amount transferred shall not exceed the

  6  actual cost of registration or housing fees. Any remaining

  7  amount shall be transferred in subsequent semesters until the

  8  transfer value is depleted. A No transfer authorized under

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

10  semester credit hours or semesters of dormitory residence

11  contracted on behalf of a qualified beneficiary.

12         (c)  An applied technology diploma program or

13  vocational certificate program conducted by a community

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

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

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

17  technical center designated by the qualified beneficiary an

18  amount not to exceed the redemption value of the advance

19  payment contract within a state postsecondary institution. If

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

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

22  at a state postsecondary institution, the amount transferred

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

24  authorized under this paragraph may not exceed the number of

25  semester credit hours contracted on behalf of a qualified

26  beneficiary.

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28  Notwithstanding any other provision in this section, an

29  institution must be an "eligible educational institution"

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

31  for the transfer of advance payment contract benefits.


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    CS for SB 288                            First Engrossed (ntc)



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

  2         (a)  The board may establish a direct-support

  3  organization which is:

  4         1.  A Florida corporation, not for profit, incorporated

  5  under the provisions of chapter 617 and approved by the

  6  Secretary of State.

  7         2.  Organized and operated exclusively to receive,

  8  hold, invest, and administer property and to make expenditures

  9  to or for the benefit of the program.

10         3.  An organization which the board, after review, has

11  certified to be operating in a manner consistent with the

12  goals of the program and in the best interests of the state.

13  Unless so certified, the organization may not use the name of

14  the program.

15         4.  Subject to an annual postaudit by an independent

16  certified public accountant in accordance with rules

17  promulgated by the board. The annual audit shall be submitted

18  to the State Board of Administration and the Auditor General

19  for review. The State Board of Administration and Auditor

20  General shall have the authority to require and receive from

21  the organization or its independent auditor any detail or

22  supplemental data relative to the operation of the

23  organization.

24         (b)  The direct-support organization shall operate

25  under written contract with the board. The contract must

26  provide for:

27         1.  Approval of the articles of incorporation and

28  bylaws of the direct-support organization by the board.

29         2.  Submission of an annual budget for the approval of

30  the board. The budget must comply with rules adopted by the

31  board.


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    CS for SB 288                            First Engrossed (ntc)



  1         3.  An annual financial and compliance audit of its

  2  financial accounts and records by an independent certified

  3  public accountant in accordance with rules adopted by the

  4  board.

  5         4.  Certification by the board that the direct-support

  6  organization is complying with the terms of the contract and

  7  in a manner consistent with the goals and purposes of the

  8  board and in the best interest of the state. Such

  9  certification must be made annually and reported in the

10  official minutes of a meeting of the board.

11         5.  The reversion to the board, or to the state if the

12  board ceases to exist, of moneys and property held in trust by

13  the direct-support organization for the benefit of the board

14  or program if the direct-support organization is no longer

15  approved to operate for the board or if the board ceases to

16  exist.

17         6.  The fiscal year of the direct-support organization,

18  which must begin July 1 of each year and end June 30 of the

19  following year.

20         7.  The disclosure of material provisions of the

21  contract and of the distinction between the board and the

22  direct-support organization to donors of gifts, contributions,

23  or bequests, and such disclosure on all promotional and

24  fundraising publications.

25         (c)  An annual financial and compliance audit of the

26  financial accounts and records of the direct-support

27  organization must be performed by an independent certified

28  public accountant. The audit must be submitted to the board

29  for review and approval. Upon approval, the board shall

30  certify the audit report to the Auditor General for review.

31  The board and Auditor General shall have the authority to


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    CS for SB 288                            First Engrossed (ntc)



  1  require and receive from the organization or its independent

  2  auditor any detail or supplemental data relative to the

  3  operation of the organization.

  4         (d)  The identity of donors who desire to remain

  5  anonymous shall be confidential and exempt from the provisions

  6  of s. 119.07(1) and s. 24(a), Art. I of the State

  7  Constitution, and such anonymity shall be maintained in the

  8  auditor's report. Information received by the organization

  9  that is otherwise confidential or exempt by law shall retain

10  such status. Any sensitive, personal information regarding

11  contract beneficiaries, including their identities, is exempt

12  from the provisions of s. 119.07(1) and s. 24(a), Art. I of

13  the State Constitution.

14         (e)(b)  The chair and the executive director of the

15  board shall be directors of the direct-support organization

16  and shall jointly name three other individuals to serve as

17  directors of the organization.

18         (f)  The board may authorize the direct-support

19  organization established in this subsection to use program

20  property, except money, and use facilities and personal

21  services subject to the provisions of this section. If the

22  direct-support organization does not provide equal employment

23  opportunities to all persons regardless of race, color,

24  religion, sex, age, or national origin, it may not use the

25  property, facilities, or personal services of the board. For

26  the purposes of this subsection, the term "personal services"

27  includes full-time personnel and part-time personnel as well

28  as payroll processing as prescribed by rule of the board. The

29  board shall adopt rules prescribing the procedures by which

30  the direct-support organization is governed and any conditions

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    CS for SB 288                            First Engrossed (ntc)



  1  with such a direct-support organization must comply to use

  2  property, facilities, or personal services of the board.

  3         (g)  The board may invest funds of the direct-support

  4  organization which have been allocated for the purchase of

  5  advance payment contracts for scholarships with receipts for

  6  advance payment contracts.

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

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