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





                                                   HOUSE AMENDMENT

    721-116AX-38                                   Bill No. HB 497

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  Representative(s) J. Miller offered the following:

12

13         Amendment (with title amendment) 

14  Remove from the bill:  Everything after the enacting clause

15

16  and insert in lieu thereof:

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

18  240.551, Florida Statutes, are amended to read:

19         240.551  Florida Prepaid College Program.--

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

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

22  qualified beneficiary may apply the benefits of an advance

23  payment contract toward:

24         (a)  A qualified beneficiary may apply a community

25  college plan, university plan, or dormitory residence plan

26  toward Any eligible independent college or university. An

27  independent college or university that which is located and

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

29  accredited by the Commission on Colleges of the Southern

30  Association of Colleges and Schools or the Accrediting

31  Commission of the Association of Independent Colleges and

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                                                   HOUSE AMENDMENT

    721-116AX-38                                   Bill No. HB 497

    Amendment No.     (for drafter's use only)





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

 2  246.021, is shall be eligible for such application. The board

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

 4  independent college or university designated by the qualified

 5  beneficiary an amount not to exceed the redemption value of

 6  the advance payment contract within a state postsecondary

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

 8  housing fees at the independent college or university is less

 9  than the corresponding fees at a state postsecondary

10  institution, the amount transferred shall not exceed the

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

12  authorized under pursuant to this paragraph may not shall

13  exceed the number of semester credit hours or semesters of

14  dormitory residence contracted on behalf of a qualified

15  beneficiary.

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

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

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

19  that which is not for profit and is accredited by a regional

20  accrediting association, and that which confers baccalaureate

21  degrees, is shall be eligible for such application. The board

22  shall transfer, or cause to have transferred, an amount not to

23  exceed the redemption value of the advance payment contract or

24  the original purchase price plus 5 percent compounded

25  interest, whichever is less, after assessment of a reasonable

26  transfer fee. If In the event that the cost of registration or

27  housing fees charged the qualified beneficiary at the eligible

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

29  calculated amount, the amount transferred shall not exceed the

30  actual cost of registration or housing fees. Any remaining

31  amount shall be transferred in subsequent semesters until the

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                                                   HOUSE AMENDMENT

    721-116AX-38                                   Bill No. HB 497

    Amendment No.     (for drafter's use only)





 1  transfer value is depleted. A No transfer authorized under

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

 3  semester credit hours or semesters of dormitory residence

 4  contracted on behalf of a qualified beneficiary.

 5         (c)  An applied technology diploma program or

 6  vocational certificate program conducted by a community

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

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

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

10  technical center designated by the qualified beneficiary an

11  amount not to exceed the redemption value of the advance

12  payment contract within a state postsecondary institution. If

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

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

15  at a state postsecondary institution, the amount transferred

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

17  authorized under this paragraph may not exceed the number of

18  semester credit hours contracted on behalf of a qualified

19  beneficiary.

20

21  Notwithstanding any other provision in this section, an

22  institution must be an "eligible educational institution"

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

24  for the transfer of advance payment contract benefits.

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

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

27  organization which is:

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

29  under the provisions of chapter 617 and approved by the

30  Secretary of State.

31         2.  Organized and operated exclusively to receive,

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                                                   HOUSE AMENDMENT

    721-116AX-38                                   Bill No. HB 497

    Amendment No.     (for drafter's use only)





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

 2  to or for the benefit of the program.

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

 4  certified to be operating in a manner consistent with the

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

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

 7  the program.

 8         4.  Subject to an annual postaudit by an independent

 9  certified public accountant in accordance with rules

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

11  to the State Board of Administration and the Auditor General

12  for review. The State Board of Administration and Auditor

13  General shall have the authority to require and receive from

14  the organization or its independent auditor any detail or

15  supplemental data relative to the operation of the

16  organization.

17         (b)  The direct-support organization shall operate

18  under written contract with the board. The contract must

19  provide for:

20         1.  Approval of the articles of incorporation and

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

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

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

24  board.

25         3.  An annual financial and compliance audit of its

26  financial accounts and records by an independent certified

27  public accountant in accordance with rules adopted by the

28  board.

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

30  organization is complying with the terms of the contract and

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

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                                                   HOUSE AMENDMENT

    721-116AX-38                                   Bill No. HB 497

    Amendment No.     (for drafter's use only)





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

 2  certification must be made annually and reported in the

 3  official minutes of a meeting of the board.

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

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

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

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

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

 9  exist.

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

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

12  following year.

13         7.  The disclosure of material provisions of the

14  contract and of the distinction between the board and the

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

16  or bequests, and such disclosure on all promotional and

17  fundraising publications.

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

19  financial accounts and records of the direct-support

20  organization must be performed by an independent certified

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

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

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

24  The board and Auditor General shall have the authority to

25  require and receive from the organization or its independent

26  auditor any detail or supplemental data relative to the

27  operation of the organization.

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

29  anonymous shall be confidential and exempt from the provisions

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

31  Constitution, and such anonymity shall be maintained in the

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                                                   HOUSE AMENDMENT

    721-116AX-38                                   Bill No. HB 497

    Amendment No.     (for drafter's use only)





 1  auditor's report. Information received by the organization

 2  that is otherwise confidential or exempt by law shall retain

 3  such status. Any sensitive, personal information regarding

 4  contract beneficiaries, including their identities, is exempt

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

 6  the State Constitution.

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

 8  board shall be directors of the direct-support organization

 9  and shall jointly name three other individuals to serve as

10  directors of the organization.

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

12  organization established in this subsection to use program

13  property, except money, and use facilities and personal

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

15  direct-support organization does not provide equal employment

16  opportunities to all persons regardless of race, color,

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

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

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

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

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

22  board shall adopt rules prescribing the procedures by which

23  the direct-support organization is governed and any conditions

24  with which such a direct-support organization must comply to

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

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

27  organization which have been allocated for the purchase of

28  advance payment contracts for scholarships with receipts for

29  advance payment contracts.

30         Section 2.  Subsection (20) of section 240.553, Florida

31  Statutes, is amended to read:

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                                                   HOUSE AMENDMENT

    721-116AX-38                                   Bill No. HB 497

    Amendment No.     (for drafter's use only)





 1         240.553  Florida College Savings Program.--

 2         (20)  PROGRAM IMPLEMENTATION

 3  RESTRICTIONS.--Implementation of the program may not begin

 4  until the board has received the following:

 5         (a)  A favorable written and unqualified opinion from

 6  counsel specializing in federal tax matters indicating that

 7  the program constitutes a qualified state tuition program

 8  under s. 529 of the Internal Revenue Code;

 9         (b)  A written and unqualified opinion from a qualified

10  member of the United States Patent Bar indicating that the

11  implementation of the program or the operation of the program

12  will not knowingly infringe upon any patent or copyright

13  specifically related to the financing of higher education

14  expenses;

15         (c)  A written and unqualified opinion of qualified

16  counsel specializing in federal securities law that the

17  program and the offering of participation in the program does

18  are not violate subject to federal securities law; and

19         (d)  A written and unqualified opinion from the board's

20  litigation counsel indicating that the implementation or

21  operation of the program will not adversely impact any pending

22  litigation against the board.

23         Section 3.  This act shall take effect July 1, 2000.

24

25

26  ================ T I T L E   A M E N D M E N T ===============

27  And the title is amended as follows:

28  remove from the title of the bill:  the entire title

29

30  and insert in lieu thereof:

31                  A bill to be entitled

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                                                   HOUSE AMENDMENT

    721-116AX-38                                   Bill No. HB 497

    Amendment No.     (for drafter's use only)





 1         An act relating to postsecondary education;

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

 3         transfer of Florida Prepaid College Program

 4         benefits to certain applied technology diploma

 5         programs and vocational certificate programs;

 6         requiring the direct-support organization to

 7         operate under written contract with the board;

 8         providing contract requirements; requiring an

 9         annual financial and compliance audit; allowing

10         the Florida Prepaid College Board to permit

11         direct-support organizations established under

12         this section to use the property, facilities,

13         and personal services of the board; providing

14         for such direct-support organizations to invest

15         funds with the moneys invested under the

16         Florida Prepaid College Trust Fund; amending s.

17         240.553(20), F.S.; modifying the type of legal

18         counsel required prior to implementing the

19         program; providing an effective date.

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