House Bill hb1509c2

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    Florida House of Representatives - 2001          CS/CS/HB 1509

        By the Council for Lifelong Learning and Committee on
    Colleges & Universities and Representative Diaz-Balart





  1                      A bill to be entitled

  2         An act relating to student financial

  3         assistance; amending s. 231.621, F.S.;

  4         providing for loan repayments under the

  5         Critical Teacher Shortage Student Loan

  6         Forgiveness Program directly to the teacher

  7         under certain circumstances; amending s.

  8         240.209, F.S.; revising language with respect

  9         to student fees; increasing the percentage of

10         funds from the financial aid fee to be used for

11         need-based financial aid; requiring Board of

12         Regents to develop criteria for making awards;

13         providing for an annual report; amending s.

14         240.271, F.S.; requiring that a minimum

15         percentage of funds provided in the General

16         Appropriations Act for fellowship and fee

17         waivers shall be used only to support graduate

18         students or upper-division students in certain

19         disciplines; amending s. 240.35, F.S.; revising

20         language with respect to student fees;

21         increasing the percentage of funds from the

22         financial aid fee to be used for need-based

23         financial aid; revising provisions regarding

24         annual report; reenacting and amending s.

25         240.40201, F.S.; revising general student

26         eligibility requirements for the Florida Bright

27         Futures Scholarship Program; reenacting and

28         amending s. 240.40202, F.S., relating to the

29         Florida Bright Futures Scholarship Program;

30         revising student eligibility provisions for

31         initial award of a Florida Bright Futures

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  1         Scholarship; revising language with respect to

  2         reinstatement applications; reenacting and

  3         amending s. 240.40203, F.S.; providing

  4         requirements for renewal, reinstatement, and

  5         restoration awards under the Florida Bright

  6         Futures Scholarship Program; reenacting and

  7         amending s. 240.40204, F.S.; updating obsolete

  8         language with respect to eligible postsecondary

  9         education institutions under the Florida Bright

10         Futures Scholarship Program; reenacting and

11         amending s. 240.40205, F.S.; revising language

12         with respect to the Florida Academic Scholars

13         award; revising provisions relating to the

14         calculation of awards; including transition

15         language currently in statute; reenacting and

16         amending s. 240.40206, F.S.; changing the name

17         of the Florida Merit Scholars award to the

18         Florida Medallion Scholars award; revising

19         eligibility requirements with respect to the

20         award; revising provisions relating to the

21         calculation of awards; reenacting and amending

22         s. 240.40207, F.S.; revising eligibility

23         requirements with respect to the Florida Gold

24         Seal Vocational Scholars award; revising

25         provisions relating to the calculation of

26         awards; providing restrictions on use of the

27         award; providing for transfer of awards;

28         including transition language currently in

29         statute; creating s. 240.40211, F.S.; providing

30         for Florida Bright Futures Scholarship Program

31         targeted occupations; providing student awards;

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  1         repealing s. 240.40208, F.S., relating to

  2         transition language for eligibility for the

  3         Florida Bright Futures Scholarship Program;

  4         repealing s. 240.40242, F.S., relating to the

  5         use of certain scholarship funds by children of

  6         deceased or disabled veterans; providing for

  7         the Florida Bright Futures Scholarship Testing

  8         Program; requiring the Articulation

  9         Coordinating Committee to identify scores,

10         credit, and courses for which credit may be

11         awarded for specified examinations; requiring

12         the completion of examinations for receipt of

13         certain awards; providing requirements with

14         respect to the award of credit; amending s.

15         240.404, F.S.; revising language with respect

16         to general requirements for student eligibility

17         for state financial aid; reenacting,

18         renumbering, and amending ss. 240.2985 and

19         240.6054, F.S.; revising and combining

20         provisions relating to ethics in business

21         scholarships; amending s. 240.409, F.S.;

22         revising language with respect to the Florida

23         Public Student Assistance Grant Program;

24         revising eligibility criteria; amending s.

25         240.4095, F.S.; revising language with respect

26         to the Florida Private Student Assistance Grant

27         Program; revising eligibility criteria;

28         amending s. 240.4097, F.S.; revising language

29         with respect to the Florida Postsecondary

30         Student Assistance Grant Program; revising

31         eligibility criteria; creating s. 240.40975,

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  1         F.S.; providing for priority with respect to

  2         Florida student assistance grant programs;

  3         amending s. 240.4128, F.S.; revising language

  4         with respect to the minority teacher education

  5         scholars program; requiring participating

  6         institutions to report on eligible students to

  7         whom scholarships are disbursed each academic

  8         term; amending s. 240.437, F.S.; revising

  9         language with respect to student financial aid

10         planning and development; amending s. 240.465,

11         F.S.; deleting language which prohibits certain

12         delinquent borrowers from being furnished with

13         their academic transcripts; reenacting and

14         amending s. 240.551, F.S.; revising language

15         with respect to the Florida Prepaid College

16         Program; revising language with respect to

17         transfer and refund provisions; providing for a

18         rollover of benefits to a college savings

19         program at the redemption value of the advance

20         payment contract at a state postsecondary

21         institution; revising provisions relating to

22         appointment of directors of the direct-support

23         organization; creating s. 240.6053, F.S.;

24         providing for academic program contracts and

25         for funding thereof; amending s. 295.02, F.S.;

26         including postsecondary education institutions

27         eligible to participate in the Florida Bright

28         Futures Scholarship Program among institutions

29         at which children of certain service members

30         may receive an award under ch. 295, F.S.;

31         providing effective dates.

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

  2

  3         Section 1.  Paragraph (c) of subsection (2) of section

  4  231.621, Florida Statutes, is amended to read:

  5         231.621  Critical Teacher Shortage Student Loan

  6  Forgiveness Program.--

  7         (2)  From the funds available, the Department of

  8  Education may make loan principal repayments as follows:

  9         (c)  All repayments shall be contingent on continued

10  proof of employment in the designated subject areas in this

11  state and shall be made directly to the holder of the loan or,

12  in case of a loan being paid in full, directly to the teacher.

13  The state shall not bear responsibility for the collection of

14  any interest charges or other remaining balance.  In the event

15  that designated critical teacher shortage subject areas are

16  changed by the State Board of Education, a teacher shall

17  continue to be eligible for loan forgiveness as long as he or

18  she continues to teach in the subject area for which the

19  original loan repayment was made and otherwise meets all

20  conditions of eligibility.

21         Section 2.  Effective July 1, 2002, paragraph (e) of

22  subsection (3) of section 240.209, Florida Statutes, is

23  amended to read:

24         240.209  Board of Regents; powers and duties.--

25         (3)  The board shall:

26         (e)  Establish student fees.

27         1.  By no later than December 1 of each year, the board

28  shall raise the systemwide standard for resident undergraduate

29  matriculation and financial aid fees for the subsequent fall

30  term, up to but no more than 25 percent of the prior year's

31  cost of undergraduate programs. In implementing this

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  1  paragraph, fees charged for graduate, medical, veterinary, and

  2  dental programs may be increased by the Board of Regents in

  3  the same percentage as the increase in fees for resident

  4  undergraduates. However, in the absence of legislative action

  5  to the contrary in an appropriations act, the board may not

  6  approve annual fee increases for resident students in excess

  7  of 10 percent. The sum of nonresident student matriculation

  8  and tuition fees must be sufficient to defray the full cost of

  9  undergraduate education. Graduate, medical, veterinary, and

10  dental fees charged to nonresidents may be increased by the

11  board in the same percentage as the increase in fees for

12  nonresident undergraduates. However, in implementing this

13  policy and in the absence of legislative action to the

14  contrary in an appropriations act, annual fee increases for

15  nonresident students may not exceed 25 percent. In the absence

16  of legislative action to the contrary in the General

17  Appropriations Act, the fees shall go into effect for the

18  following fall term.

19         2.  When the appropriations act requires a new fee

20  schedule, the board shall establish a systemwide standard fee

21  schedule required to produce the total fee revenue established

22  in the appropriations act based on the product of the assigned

23  enrollment and the fee schedule. The board may approve the

24  expenditure of any fee revenues resulting from the product of

25  the fee schedule adopted pursuant to this section and the

26  assigned enrollment.

27         3.  Upon provision of authority in a General

28  Appropriations Act to spend revenue raised pursuant to this

29  section, the board shall approve a university request to

30  implement a matriculation and out-of-state tuition fee

31  schedule which is calculated to generate revenue which varies

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  1  no more than 10 percent from the standard fee revenues

  2  authorized through an appropriations act. In implementing an

  3  alternative fee schedule, the increase in cost to a student

  4  taking 15 hours in one term shall be limited to 5 percent.

  5  Matriculation and out-of-state tuition fee revenues generated

  6  as a result of this provision are to be expended for

  7  implementing a plan for achieving accountability goals adopted

  8  pursuant to s. 240.214 and for implementing a Board of

  9  Regents-approved plan to contain student costs by reducing the

10  time necessary for graduation without reducing the quality of

11  instruction. The plans shall be recommended by a

12  universitywide committee, at least one-half of whom are

13  students appointed by the student body president. A

14  chairperson, appointed jointly by the university president and

15  the student body president, shall vote only in the case of a

16  tie.

17         4.  The board may implement individual university plans

18  for a differential out-of-state tuition fee for universities

19  that have a service area that borders another state.

20         5.  The board is authorized to collect for financial

21  aid purposes an amount not to exceed 5 percent of the student

22  tuition and matriculation fee per credit hour. The revenues

23  from fees are to remain at each campus and replace existing

24  financial aid fees. Such funds shall be disbursed to students

25  as quickly as possible. These funds may not be used for direct

26  or indirect administrative purposes or salaries. The board

27  shall specify specific limits on the percent of the fees

28  collected in a fiscal year which may be carried forward

29  unexpended to the following fiscal year. A minimum of 75 50

30  percent of funds from the student financial aid fee for new

31  financial aid awards shall be used to provide financial aid

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  1  based on absolute need. A student who has received an award

  2  prior to July 1, 1984, shall have his or her eligibility

  3  assessed on the same criteria that was used at the time of his

  4  or her original award. The Board of Regents shall develop

  5  criteria for making financial aid awards. Each university

  6  shall report annually to the Department of Education on the

  7  revenue collected pursuant to this subparagraph, the amount

  8  carried forward, the criteria used to make awards, the amount

  9  and number of awards for each criterion, and a delineation of

10  the distribution of such awards.  The report shall include an

11  assessment by category of the financial need of every student

12  who receives an award, regardless of the purpose for which the

13  award is received.  Awards which are based on financial need

14  shall be distributed in accordance with a nationally

15  recognized system of need analysis approved by the Board of

16  Regents.  An award for academic merit shall require a minimum

17  overall grade point average of 3.0 on a 4.0 scale or the

18  equivalent for both initial receipt of the award and renewal

19  of the award.

20         6.  The board may recommend to the Legislature an

21  appropriate systemwide standard matriculation and tuition fee

22  schedule.

23         7.  The Education and General Student and Other Fees

24  Trust Fund is hereby created, to be administered by the

25  Department of Education.  Funds shall be credited to the trust

26  fund from student fee collections and other miscellaneous fees

27  and receipts. The purpose of the trust fund is to support the

28  instruction and research missions of the State University

29  System. Notwithstanding the provisions of s. 216.301, and

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

31  end of any fiscal year shall remain in the trust fund and

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  1  shall be available for carrying out the purposes of the trust

  2  fund.

  3         8.  The board is further authorized to establish the

  4  following fees:

  5         a.  A nonrefundable application fee in an amount not to

  6  exceed $30.

  7         b.  An admissions deposit fee for the University of

  8  Florida College of Dentistry in an amount not to exceed $200.

  9         c.  An orientation fee in an amount not to exceed $35.

10         d.  A fee for security, access, or identification

11  cards. The annual fee for such a card may not exceed $10 per

12  card. The maximum amount charged for a replacement card may

13  not exceed $15.

14         e.  Registration fees for audit and zero-hours

15  registration; a service charge, which may not exceed $15, for

16  the payment of tuition in installments; and a

17  late-registration fee in an amount not less than $50 nor more

18  than $100 to be imposed on students who fail to initiate

19  registration during the regular registration period.

20         f.  A late-payment fee in an amount not less than $50

21  nor more than $100 to be imposed on students who fail to pay

22  or fail to make appropriate arrangements to pay (by means of

23  installment payment, deferment, or third-party billing)

24  tuition by the deadline set by each university. Each

25  university may adopt specific procedures or policies for

26  waiving the late-payment fee for minor underpayments.

27         g.  A fee for miscellaneous health-related charges for

28  services provided at cost by the university health center

29  which are not covered by the health fee set under s.

30  240.235(1).

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  1         h.  Materials and supplies fees to offset the cost of

  2  materials or supplies that are consumed in the course of the

  3  student's instructional activities, excluding the cost of

  4  equipment replacement, repairs, and maintenance.

  5         i.  Housing rental rates and miscellaneous housing

  6  charges for services provided by the university at the request

  7  of the student.

  8         j.  A charge representing the reasonable cost of

  9  efforts to collect payment of overdue accounts.

10         k.  A service charge on university loans in lieu of

11  interest and administrative handling charges.

12         l.  A fee for off-campus course offerings when the

13  location results in specific, identifiable increased costs to

14  the university.

15         m.  Library fees and fines, including charges for

16  damaged and lost library materials, overdue reserve library

17  books, interlibrary loans, and literature searches.

18         n.  Fees relating to duplicating, photocopying,

19  binding, and microfilming; copyright services; and

20  standardized testing. These fees may be charged only to those

21  who receive the services.

22         o.  Fees and fines relating to the use, late return,

23  and loss and damage of facilities and equipment.

24         p.  A returned-check fee as authorized by s. 832.07(1)

25  for unpaid checks returned to the university.

26         q.  Traffic and parking fines, charges for parking

27  decals, and transportation access fees.

28         r.  An Educational Research Center for Child

29  Development fee for child care and services offered by the

30  center.

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  1         s.  Fees for transcripts and diploma replacement, not

  2  to exceed $10 per item.

  3         Section 3.  Effective July 1, 2002, subsection (7) is

  4  added to section 240.271, Florida Statutes, to read:

  5         240.271  State University System; funding.--

  6         (7)  A minimum of 50 percent of new awards from the

  7  funds provided in the General Appropriations Act for

  8  fellowships and fee waivers shall be used only to support

  9  graduate students or upper-division students formally admitted

10  to programs in the following disciplines: computer and

11  information sciences; engineering; engineering technology;

12  biological sciences/life sciences; mathematics; physical

13  sciences; and health professions and related sciences. The

14  State University System shall report annually to the

15  Legislature the distribution of fellowships and fee waivers

16  provided, including, but not limited to, the number of awards,

17  the dollar value of the awards, student level, student

18  discipline, and the number and percent of fee-waiver

19  recipients remaining in the state following graduation who are

20  employed in the field directly related to the discipline for

21  which the fee waiver was received.

22         Section 4.  Effective July 1, 2002, subsection (11) of

23  section 240.35, Florida Statutes, is amended to read:

24         240.35  Student fees.--Unless otherwise provided, the

25  provisions of this section apply only to fees charged for

26  college credit instruction leading to an associate in arts

27  degree, an associate in applied science degree, or an

28  associate in science degree and noncollege credit

29  college-preparatory courses defined in s. 239.105.

30         (11)(a)  Each community college is authorized to

31  establish a separate fee for financial aid purposes in an

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  1  additional amount up to, but not to exceed, 5 percent of the

  2  total student tuition or matriculation fees collected.  Each

  3  community college may collect up to an additional 2 percent if

  4  the amount generated by the total financial aid fee is less

  5  than $250,000. If the amount generated is less than $250,000,

  6  a community college that charges tuition and matriculation

  7  fees at least equal to the average fees established by rule

  8  may transfer from the general current fund to the scholarship

  9  fund an amount equal to the difference between $250,000 and

10  the amount generated by the total financial aid fee

11  assessment. No other transfer from the general current fund to

12  the loan, endowment, or scholarship fund, by whatever name

13  known, is authorized.

14         (b)  All funds collected under this program shall be

15  placed in the loan and endowment fund or scholarship fund of

16  the college, by whatever name known. Such funds shall be

17  disbursed to students as quickly as possible.  An amount not

18  greater than 40 percent of the fees collected in a fiscal year

19  may be carried forward unexpended to the following fiscal

20  year.  However, funds collected prior to July 1, 1989, and

21  placed in an endowment fund may not be considered part of the

22  balance of funds carried forward unexpended to the following

23  fiscal year.

24         (c)  Up to 25 percent or $300,000, whichever is

25  greater, of the financial aid fees collected may be used to

26  assist students who demonstrate academic merit; who

27  participate in athletics, public service, cultural arts, and

28  other extracurricular programs as determined by the

29  institution; or who are identified as members of a targeted

30  gender or ethnic minority population. The financial aid fee

31  revenues allocated for athletic scholarships and fee

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  1  exemptions provided pursuant to subsection (17) for athletes

  2  shall be distributed equitably as required by s.

  3  228.2001(3)(d).  A minimum of 75 50 percent of the balance of

  4  these funds for new awards shall be used to provide financial

  5  aid based on absolute need, and the remainder of the funds

  6  shall be used for academic merit purposes and other purposes

  7  approved by the district boards of trustees.  Such other

  8  purposes shall include the payment of child care fees for

  9  students with financial need. The State Board of Community

10  Colleges shall develop criteria for making financial aid

11  awards.  Each college shall report annually to the Department

12  of Education on the revenue collected pursuant to this

13  paragraph, the amount carried forward, the criteria used to

14  make awards, the amount and number of awards for each

15  criterion, and a delineation of the distribution of such

16  awards. The report shall include an assessment by category of

17  the financial need of every student who receives an award,

18  regardless of the purpose for which the award is received.

19  Awards which are based on financial need shall be distributed

20  in accordance with a nationally recognized system of need

21  analysis approved by the State Board of Community Colleges. An

22  award for academic merit shall require a minimum overall grade

23  point average of 3.0 on a 4.0 scale or the equivalent for both

24  initial receipt of the award and renewal of the award.

25         (d)  These funds may not be used for direct or indirect

26  administrative purposes or salaries.

27         Section 5.  Notwithstanding subsection (7) of section 3

28  of chapter 2000-321, Laws of Florida, section 240.40201,

29  Florida Statutes, shall not stand repealed on January 7, 2003,

30  and is reenacted and amended to read:

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  1         240.40201  Florida Bright Futures Scholarship

  2  Program.--

  3         (1)  The Florida Bright Futures Scholarship Program is

  4  created to establish a lottery-funded scholarship program to

  5  reward any Florida high school graduate who merits recognition

  6  of high academic achievement and who enrolls in a degree

  7  program, certificate program, or applied technology diploma

  8  program at an eligible Florida public or private postsecondary

  9  education institution within 7 3 years of graduation from high

10  school. No award shall be provided to a student beyond 7 years

11  after high school graduation, regardless of the year in which

12  a student first receives scholarship funding.

13         (2)  The Bright Futures Scholarship Program consists of

14  three types of awards, the Florida Academic Scholarship, the

15  Florida Medallion Merit Scholarship, and the Florida

16  Vocational Gold Seal Vocational Scholarship.

17         (3)  The Department of Education shall administer the

18  Bright Futures Scholarship Program according to rules and

19  procedures established by the Commissioner of Education. A

20  single application must be sufficient for a student to apply

21  for any of the three types of awards. The department must

22  advertise the availability of the scholarship program and must

23  notify students, teachers, parents, guidance counselors, and

24  principals or other relevant school administrators of the

25  criteria and application procedures. The department must begin

26  this process of notification no later than January 1 of each

27  year.

28         (4)  Funding for the Bright Futures Scholarship Program

29  must be allocated from the Education Enhancement Trust Fund

30  and must be provided before allocations from that fund are

31  calculated for disbursement to other educational entities.

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  1         (a)  If funds appropriated are not adequate to provide

  2  the maximum allowable award to each eligible applicant, awards

  3  in all three components of the program must be prorated using

  4  the same percentage reduction.

  5         (b)  Notwithstanding s. 216.301, if all funds allocated

  6  to the Bright Futures Scholarship Program are not used in any

  7  fiscal year, up to 10 percent of the total allocation may be

  8  carried forward and used for awards in the following year.

  9         (5)  The department shall issue awards from the

10  scholarship program annually. Annual awards may be for up to

11  45 semester credit hours or the equivalent. Before the

12  registration period each semester, the department shall

13  transmit payment for each award to the president or director

14  of the postsecondary education institution, or his or her

15  representative, except that the department may withhold

16  payment if the receiving institution fails to report or to

17  make refunds to the department as required in this act.

18         (a)  Within 30 days after the end of regular

19  registration each semester, the educational institution shall

20  certify to the department the eligibility status of each

21  student who receives an award. After the end of the drop and

22  add period, an institution is not required to reevaluate or

23  revise a student's eligibility status, but must make a refund

24  to the department if a student who receives an award

25  disbursement terminates enrollment for any reason during an

26  academic term and a refund is permitted by the institution's

27  refund policy.

28         (b)  An institution that receives funds from the

29  program shall certify to the department the amount of funds

30  disbursed to each student and shall remit to the department

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  1  any undisbursed advances within 60 days after the end of

  2  regular registration.

  3         (c)  Each institution that receives moneys through this

  4  program shall prepare an annual report that includes an

  5  independent external audit or an audit prepared by the Office

  6  of the Auditor General. The report shall include an audit of

  7  the institution's administration of the program and a complete

  8  accounting of the moneys for the program. This report must be

  9  submitted to the department annually by March 1. The

10  department may conduct its own annual audit of an

11  institution's administration of the program. The department

12  may request a refund of any moneys overpaid to the institution

13  for the program. The department may suspend or revoke an

14  institution's eligibility to receive future moneys for the

15  program if the department finds that an institution has not

16  complied with this section. The institution must remit within

17  60 days any refund requested in accordance with this

18  subsection.

19         (6)  A student enrolled in 6 to 8 semester credit hours

20  may receive up to one-half of the maximum award; a student

21  enrolled in 9 to 11 credit hours may receive up to

22  three-fourths of the maximum award; and a student enrolled in

23  12 or more credit hours may receive up to the full award.

24         (7)  A student may receive only one type of award from

25  the Florida Bright Futures Scholarship Program at a time, but

26  may transfer from one type of award to another through the

27  renewal application process, if the student's eligibility

28  status changes. However, a student is not eligible to transfer

29  from a Florida Medallion Merit Scholarship or a Florida

30  Vocational Gold Seal Vocational Scholarship to a Florida

31  Academic Scholarship. A student who receives an award from the

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  1  program may also receive a federal family education loan or a

  2  federal direct loan, and the value of the award must be

  3  considered in the certification or calculation of the

  4  student's loan eligibility.

  5         (8)  If a recipient transfers from one eligible

  6  institution to another and continues to meet eligibility

  7  requirements, the award must be transferred with the student.

  8         (9)  A student may use an award for summer term

  9  enrollment if funds are available.

10         (10)  Funds from any scholarship within the Florida

11  Bright Futures Scholarship Program may not be used to pay for

12  remedial or college-preparatory coursework.

13         Section 6.  Notwithstanding subsection (7) of section 3

14  of chapter 2000-321, Laws of Florida, section 240.40202,

15  Florida Statutes, shall not stand repealed on January 7, 2003,

16  and is reenacted and amended to read:

17         240.40202  Florida Bright Futures Scholarship Program;

18  student eligibility requirements for initial awards.--

19         (1)  To be eligible for an initial award from any of

20  the three types of scholarships under the Florida Bright

21  Futures Scholarship Program, a student must:

22         (a)  Be a Florida resident as defined in s. 240.404 and

23  rules of the State Board of Education.

24         (b)  Earn a standard Florida high school diploma or its

25  equivalent as described in s. 232.246 or s. 229.814 unless:

26         1.  The student is enrolled full time in the early

27  admission program of an eligible postsecondary education

28  institution or completes a home education program according to

29  s. 232.0201; or

30         2.  The student earns a high school diploma from a

31  non-Florida school while living with a parent or guardian who

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  1  is on military or public service assignment away from Florida.

  2  "Public service assignment," as used in this subparagraph,

  3  means the occupational assignment outside Florida of a person

  4  who is a permanent resident of Florida and who is employed by

  5  the United States Government or the State of Florida, a

  6  condition of which employment is assignment outside Florida.

  7         (c)  Be accepted by and enroll in an eligible Florida

  8  public or independent postsecondary education institution.

  9         (d)  Be enrolled for at least 6 semester credit hours

10  or the equivalent in quarter hours or clock hours.

11         (e)  Not have been found guilty of, or have pled plead

12  nolo contendere to or guilty to, a felony charge, unless the

13  student has been granted clemency by the Governor and Cabinet

14  sitting as the Executive Office of Clemency.

15         (f)  Apply for a scholarship from the program by April

16  1 of the last semester before high school graduation. Requests

17  for exceptions to this deadline may be accepted by the high

18  school or district through December 31 following high school

19  graduation.

20         (2)  A student is eligible to accept an initial award

21  for 3 years following high school graduation and to accept a

22  renewal award for 7 years following high school graduation. A

23  student who applies for an award by April 1 and who meets all

24  other eligibility requirements, but who does not accept his or

25  her award during the first year of eligibility after high

26  school graduation, may apply for reinstatement of the award

27  for use within 7 reapply during subsequent application periods

28  up to 3 years after high school graduation. Reinstatement

29  applications must be received by the deadline established by

30  the Department of Education.

31

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  1         (3)  For purposes of calculating the grade point

  2  average to be used in determining initial eligibility for a

  3  Florida Bright Futures scholarship, the department shall

  4  assign additional weights to grades earned in the following

  5  courses:

  6         (a)  Courses identified in the course code directory as

  7  Advanced Placement, pre-International Baccalaureate, or

  8  International Baccalaureate.

  9         (b)  Courses designated as academic dual enrollment

10  courses in the statewide course numbering system.

11

12  The department may assign additional weights to courses, other

13  than those described in paragraphs (a) and (b), that are

14  identified by the Articulation Coordinating Committee as

15  containing rigorous academic curriculum and performance

16  standards. The additional weight assigned to a course pursuant

17  to this subsection shall not exceed 0.5 per course. The

18  weighted system shall be developed and distributed to all high

19  schools in the state prior to January 1, 1998. The department

20  may determine a student's eligibility status during the senior

21  year before graduation and may inform the student of the award

22  at that time.

23         (4)  A student who wishes to qualify for a particular

24  award within the Florida Bright Futures Scholarship Program,

25  but who does not meet all of the requirements for that level

26  of award, may, nevertheless, receive the award if the

27  principal of the student's school or the district

28  superintendent verifies that the deficiency is caused by the

29  fact that school district personnel provided inaccurate or

30  incomplete information to the student. The school district

31  must provide a means for the student to correct the

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  1  deficiencies and the student must correct them, either by

  2  completing comparable work at the postsecondary institution or

  3  by completing a directed individualized study program

  4  developed and administered by the school district. If the

  5  student does not complete the requirements by December 31

  6  immediately following high school graduation, the student is

  7  ineligible to participate in the program.

  8         Section 7.  Notwithstanding subsection (7) of section 3

  9  of chapter 2000-321, Laws of Florida, section 240.40203,

10  Florida Statutes, shall not stand repealed on January 7, 2003,

11  and is reenacted and amended to read:

12         240.40203  Florida Bright Futures Scholarship Program;

13  student eligibility requirements for renewal, reinstatement,

14  and restoration awards.--

15         (1)  To be eligible to receive renew a scholarship from

16  any of the three types of scholarships under the Florida

17  Bright Futures Scholarship Program after the first year of

18  eligibility, a student must meet the following requirements

19  for renewal, reinstatement, or restoration:

20         (1)(a)  Renewal applies to students who receive an

21  award for at least one term during the immediately preceding

22  academic year. For renewal, a student must complete at least

23  12 semester credit hours or the equivalent in the last

24  academic year in which the student earned a scholarship and.

25         (b)  maintain the cumulative grade point average

26  required by the scholarship program, except that:

27         (a)1.  If a recipient's grades fall beneath the average

28  required to renew a Florida Academic Scholarship, but are

29  sufficient to renew a Florida Medallion Merit Scholarship or a

30  Florida Vocational Gold Seal Scholarship, the Department of

31  Education may grant a renewal to the Florida Medallion

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  1  Scholarship. from one of those other scholarship programs, if

  2  the student meets the renewal eligibility requirements; or

  3         (b)2.  If, upon renewal evaluation, a student fails to

  4  meet the renewal criteria pursuant to this section, credit

  5  hours and grades earned during the following summer term may

  6  be used to satisfy the renewal requirements. If, at any time

  7  during the eligibility period, a student's grades are

  8  insufficient to renew the scholarship, the student may restore

  9  eligibility by improving the grade point average to the

10  required level. A student is eligible for such a reinstatement

11  only once. The Legislature encourages education institutions

12  to assist students to calculate whether or not it is possible

13  to raise the grade point average during the summer term. If

14  the institution determines that it is possible, the education

15  institution may so inform the department, which may reserve

16  the student's award if funds are available. The renewal,

17  however, must not be granted until the student achieves the

18  required cumulative grade point average and earns the required

19  number of hours. If, during the summer term, a student does

20  not earn is not sufficient hours or to raise the grade point

21  average to the required renewal level, the student shall not

22  be eligible for an award student's next opportunity for

23  renewal is the fall semester of the following academic year.

24         (2)  Reinstatement applies to students who were

25  eligible but did not receive an award during the previous

26  academic year or years, and who may apply to reestablish use

27  of the scholarship.  For reinstatement, a student must have

28  been eligible at the time of the student's most recent Florida

29  Bright Futures Scholarship eligibility determination.  The

30  student must apply for reinstatement by submitting a

31

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  1  reinstatement application by the deadline established by the

  2  Department of Education.

  3         (3)  Restoration applies to students who lost

  4  scholarship eligibility as a result of not meeting the renewal

  5  grade point average or number of hours, or both, at a prior

  6  evaluation period.  A student may restore eligibility by

  7  meeting the renewal grade point average during a subsequent

  8  renewal evaluation period.  A student is eligible to receive

  9  such restoration only once.  The student must submit an

10  application for restoration by the deadline established by the

11  Department of Education.

12         (2)  A student who is enrolled in a program that

13  terminates in an associate degree or a baccalaureate degree

14  may receive an award for a maximum of 110 percent of the

15  number of credit hours required to complete the program. A

16  student who is enrolled in a program that terminates in a

17  technical certificate may receive an award for a maximum of

18  110 percent of the credit hours or clock hours required to

19  complete the program up to 90 credit hours. A student who

20  transfers from one of these program levels to another becomes

21  eligible for the higher of the two credit hour limits.

22         Section 8.  Notwithstanding subsection (7) of section 3

23  of chapter 2000-321, Laws of Florida, section 240.40204,

24  Florida Statutes, shall not stand repealed on January 7, 2003,

25  and is reenacted and amended to read:

26         240.40204  Florida Bright Futures Scholarship Program;

27  eligible postsecondary education institutions.--A student is

28  eligible for an award or the renewal, reinstatement, or

29  restoration of an award from the Florida Bright Futures

30  Scholarship Program if the student meets the requirements for

31  the program as described in this act and is enrolled in a

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  1  postsecondary education institution that meets the description

  2  in any one of the following subsections:

  3         (1)  A Florida public university, community college, or

  4  technical center.

  5         (2)  An independent Florida college or university that

  6  is accredited by an accrediting agency recognized by the

  7  United States Department of Education a member of the

  8  Commission on Recognition of Postsecondary Accreditation and

  9  which has operated in the state for at least 3 years.

10         (3)  An independent Florida postsecondary education

11  institution that is licensed by the State Board of Independent

12  Colleges and Universities and which:

13         (a)  Shows evidence of sound financial condition; and

14         (b)  Has operated in the state for at least 3 years

15  without having its approval, accreditation, or license placed

16  on probation.

17         (4)  A Florida independent postsecondary education

18  institution that offers a nursing diploma approved by the

19  Board of Nursing.

20         (5)  A Florida independent postsecondary education

21  institution that is licensed by the State Board of Nonpublic

22  Career Education and which:

23         (a)  Has a program completion and placement rate of at

24  least the rate required by the current Florida Statutes, the

25  Florida Administrative Code, or the Department of Education

26  for an institution at its level; and

27         (b)  Shows evidence of sound financial condition; and

28  either:

29         1.  Is accredited at the institutional level by an

30  accrediting agency recognized by the United States Department

31  of Education and has operated in the state for at least 3

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  1  years during which there has been no complaint for which

  2  probable cause has been found; or

  3         2.  Has operated in Florida for 5 years during which

  4  there has been no complaint for which probable cause has been

  5  found.

  6         Section 9.  Notwithstanding subsection (7) of section 3

  7  of chapter 2000-321, Laws of Florida, section 240.40205,

  8  Florida Statutes, shall not stand repealed on January 7, 2003,

  9  and is reenacted and amended to read:

10         240.40205  Florida Academic Scholars award.--

11         (1)  A student is eligible for a Florida Academic

12  Scholars award if the student meets the general eligibility

13  requirements for the Florida Bright Futures Scholarship

14  Program and the student:

15         (a)  Has achieved a 3.5 weighted grade point average as

16  calculated pursuant to s. 240.40202, or its equivalent, in

17  high school courses that are adopted by the Board of Regents

18  and recommended by the State Board of Community Colleges as

19  college-preparatory academic courses; and

20         (b)  Has attained at least a score of 1270 the score

21  identified by rules of the Department of Education on the

22  combined verbal and quantitative parts of the Scholastic

23  Aptitude Test, the Scholastic Assessment Test, or the

24  recentered Scholastic Assessment Test of the College Entrance

25  Examination, or an equivalent score on the American College

26  Test Testing Program; or

27         (c)  Has attended a home education program according to

28  s. 232.0201 during grades 11 and 12 or has completed the

29  International Baccalaureate curriculum but failed to earn the

30  International Baccalaureate Diploma, and has attained at least

31  a score of 1270 the score identified by rules of the

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  1  Department of Education on the combined verbal and

  2  quantitative parts of the Scholastic Aptitude Test, the

  3  Scholastic Assessment Test, or the recentered Scholastic

  4  Assessment Test of the College Entrance Examination, or an

  5  equivalent score on the American College Test Testing Program;

  6  or

  7         (d)  Has been awarded an International Baccalaureate

  8  Diploma from the International Baccalaureate Office; or

  9         (e)  Has been recognized by the merit or achievement

10  programs of the National Merit Scholarship Corporation as a

11  scholar or finalist; or

12         (f)  Has been recognized by the National Hispanic

13  Recognition Program as a scholar recipient.

14

15  Effective with the 1998-1999 school year, a student must

16  complete a program of community service work, as approved by

17  the district school board or the administrators of a nonpublic

18  school, which shall include a minimum of 75 hours of service

19  work and require the student to identify a social problem that

20  interests him or her, develop a plan for his or her personal

21  involvement in addressing the problem, and, through papers or

22  other presentations, evaluate and reflect upon his or her

23  experience.

24         (2)(a)  A Florida Academic Scholar who is enrolled in a

25  public postsecondary education institution is eligible for an

26  award equal to the amount required to pay matriculation and,

27  fees, as defined by the department, and $600 for

28  college-related expenses annually. A student who is enrolled

29  in a nonpublic postsecondary education institution is eligible

30  for an award equal to the amount that would be required to pay

31  for the average matriculation and fees of a public

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  1  postsecondary education institution at the comparable level,

  2  plus the annual $600. A student who is enrolled in a program

  3  that terminates in an associate degree or a baccalaureate

  4  degree may receive an award for a maximum of 110 percent of

  5  the number of credit hours required to complete the program.

  6  A student who is enrolled in an undergraduate program that

  7  terminates in the award of a postbaccalaureate degree, or the

  8  simultaneous award of baccalaureate and postbaccalaureate

  9  degrees, may receive an award for a maximum of 132 semester

10  hours, or the equivalent, at the undergraduate rate.  A

11  student who is enrolled in a program that terminates in a

12  technical certificate may receive an award for a maximum of

13  110 percent of the credit hours or clock hours required to

14  complete the program up to 90 credit hours.  A student who

15  transfers from one of these program levels to another becomes

16  eligible for the higher of the credit hour limits.

17         (b)  Beginning with the 2005-2006 academic year and for

18  each year thereafter, the Florida Academic Scholars award

19  amount shall be calculated on the basis of $120 per semester

20  credit hour, or the equivalent. The total number of credit

21  hours for which a student may receive payment shall not exceed

22  the equivalent of 132 semester credit hours.

23         (3)  To be eligible for a renewal or restoration award

24  as a Florida Academic Scholar, a student must meet the

25  requirements of s. 240.40203 and the maintain the equivalent

26  of a grade point average requirement of 3.0 on a 4.0 scale, or

27  the equivalent, for all postsecondary education work

28  attempted. A student may have, with an opportunity for one

29  restoration reinstatement as provided in this act.

30         (4)  In each school district, the Florida Academic

31  Scholar with the highest academic ranking shall be designated

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  1  as an Academic Top Scholar and shall receive an additional

  2  award of $1,500 for college-related expenses. This award must

  3  be funded from the Florida Bright Futures Scholarship Program.

  4         (5)  A student who graduated from high school in 1997

  5  or earlier and who was eligible for the Florida Undergraduate

  6  Scholars' Program pursuant to s. 240.402 is eligible for a

  7  Florida Academic Scholars award as provided in this act.

  8         Section 10.  Notwithstanding subsection (7) of section

  9  3 of chapter 2000-321, Laws of Florida, section 240.40206,

10  Florida Statutes, shall not stand repealed on January 7, 2003,

11  and is reenacted and amended to read:

12         240.40206  Florida Medallion Merit Scholars award.--

13         (1)  A student is eligible for a Florida Medallion

14  Merit Scholars award if the student meets the general

15  eligibility requirements for the Florida Bright Futures

16  Scholarship Program and the student:

17         (a)  Has achieved a weighted grade point average of 3.0

18  as calculated pursuant to s. 240.40202, or the equivalent, in

19  high school courses that are adopted by the Board of Regents

20  and recommended by the State Board of Community Colleges as

21  college-preparatory academic courses; and

22         (b)  Has attained at least the score identified by

23  rules of the Department of Education, or a score of at least

24  1100 for a student who enters the ninth grade in the 2001-2002

25  school year or thereafter, on the combined verbal and

26  quantitative parts of the Scholastic Aptitude Test, the

27  Scholastic Assessment Test, or the recentered Scholastic

28  Assessment Test of the College Entrance Examination, or an

29  equivalent score on the American College Test Testing Program;

30  or

31

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  1         (c)  Has attended a home education program according to

  2  s. 232.0201 during grades 11 and 12 or has completed the

  3  International Baccalaureate curriculum but failed to earn the

  4  International Baccalaureate Diploma, and has attained at least

  5  the score identified by rules of the Department of Education,

  6  or a score of at least 1100 for a student who enters the ninth

  7  grade in the 2001-2002 school year or thereafter, on the

  8  combined verbal and quantitative parts of the Scholastic

  9  Aptitude Test, the Scholastic Assessment Test, or the

10  recentered Scholastic Assessment Test of the College Entrance

11  Examination, or an equivalent score on the American College

12  Test Testing Program; or.

13         (d)  Has been recognized by the merit or achievement

14  programs of the National Merit Scholarship Corporation as a

15  scholar or finalist, but has not completed a program of

16  community service as provided in s. 240.40205; or

17         (e)  Has been recognized by the National Hispanic

18  Recognition Program as a scholar, but has not completed a

19  program of community service as provided in s. 240.40205.

20         (2)(a)  A Florida Medallion Merit Scholar is eligible

21  for an award equal to the amount required to pay 75 percent of

22  matriculation and fees, as defined by the department, if the

23  student is enrolled in a public postsecondary education

24  institution. A student who is enrolled in a nonpublic

25  postsecondary education institution is eligible for an award

26  equal to the amount that would be required to pay 75 percent

27  of the average matriculation and fees of a public

28  postsecondary education institution at the comparable level. A

29  student who is enrolled in a program that terminates in an

30  associate degree or a baccalaureate degree may receive an

31  award for a maximum of 110 percent of the number of credit

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  1  hours required to complete the program.  A student who is

  2  enrolled in an undergraduate program that terminates in the

  3  award of a postbaccalaureate degree, or the simultaneous award

  4  of baccalaureate and postbaccalaureate degrees, may receive an

  5  award for a maximum of 132 semester hours, or the equivalent,

  6  at the undergraduate rate.  A student who is enrolled in a

  7  program that terminates in a technical certificate may receive

  8  an award for a maximum of 110 percent of the credit hours or

  9  clock hours required to complete the program up to 90 credit

10  hours.  A student who transfers from one of these program

11  levels to another becomes eligible for the higher of the

12  credit hour limits.

13         (b)  Beginning with the 2005-2006 academic year and for

14  each year thereafter, the Florida Medallion Scholars award

15  amount shall be calculated on the basis of $75 per semester

16  credit hour, or the equivalent. The total number of credit

17  hours for which a student may receive payment shall not exceed

18  the equivalent of 132 semester credit hours.

19         (3)  To be eligible for a renewal or restoration award

20  as a Florida Medallion Merit Scholar, a student must meet the

21  requirements of s. 240.40203 and the maintain the equivalent

22  of a grade point average requirement of 2.75 on a 4.0 scale,

23  or the equivalent, for all postsecondary education work

24  attempted. A student may have, with an opportunity for

25  reinstatement one restoration time as provided in this act.

26         Section 11.  Notwithstanding subsection (7) of section

27  3 of chapter 2000-321, Laws of Florida, section 240.40207,

28  Florida Statutes, shall not stand repealed on January 7, 2003,

29  and is reenacted and amended to read:

30         240.40207  Florida Gold Seal Vocational Scholars

31  award.--The Florida Gold Seal Vocational Scholars award is

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  1  created within the Florida Bright Futures Scholarship Program

  2  to recognize and reward academic achievement and vocational

  3  preparation by high school students who wish to continue their

  4  education.

  5         (1)  A student is eligible for a Florida Gold Seal

  6  Vocational Scholars award if the student meets the general

  7  eligibility requirements for the Florida Bright Futures

  8  Scholarship Program and the student:

  9         (a)  Successfully completes the secondary school

10  portion of a sequential program of studies that requires at

11  least three secondary school vocational credits in one program

12  of study, as identified by the Department of Education, taken

13  over at least 2 academic years, and is continued in a planned,

14  related postsecondary education program. If the student's

15  school does not offer such a two-plus-two or tech-prep

16  program, the student must complete a job-preparatory career

17  education program selected by the Workforce Estimating

18  Conference or Workforce Florida, Inc., for its ability to

19  provide high-wage employment in an occupation with high

20  potential for employment opportunities. By July 1, 2002, the

21  Articulation Coordinating Committee shall identify the

22  programs at each 4-year institution that qualify as planned,

23  related postsecondary education programs. On-the-job training

24  may not be substituted for any of the three required

25  vocational credits.

26         (b)  Demonstrates readiness for postsecondary education

27  by earning a passing score on the Florida College Entry Level

28  Placement Test or its equivalent as identified by the

29  Department of Education.

30         (c)  Earns a minimum cumulative weighted grade point

31  average of 3.0, as calculated pursuant to s. 240.40202, on all

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  1  subjects required for a standard high school diploma,

  2  excluding elective courses.

  3         (d)  Earns a minimum unweighted grade point average of

  4  3.5 on a 4.0 scale for secondary vocational courses comprising

  5  the vocational program.

  6         (e)  Completes the requirements of a vocational-ready

  7  diploma program, as defined by rules of the State Board of

  8  Education.

  9         (2)(a)  A Florida Gold Seal Vocational Scholar is

10  eligible for an award equal to the amount required to pay 75

11  percent of matriculation and fees, as defined by the

12  department, if the student is enrolled in a public

13  postsecondary education institution. A student who is enrolled

14  in a nonpublic postsecondary education institution is eligible

15  for an award equal to the amount that would be required to pay

16  75 percent of the matriculation and mandatory fees of a public

17  postsecondary education institution at the comparable level. A

18  student who is enrolled in a program that terminates in a

19  technical certificate may receive an award for a maximum of

20  110 percent of the credit hours or clock hours required to

21  complete the program up to 90 credit hours.

22         (b)  Beginning with the 2005-2006 academic year and for

23  each year thereafter, the Florida Gold Seal Vocational

24  Scholars award amount shall be calculated on the basis of $75

25  per semester credit hour, or the equivalent. The total number

26  of credit hours for which a student may receive payment shall

27  not exceed the equivalent of 90 credit hours.

28         (3)  To be eligible for a renewal or restoration award

29  as a Florida Gold Seal Vocational Scholar, a student must meet

30  the requirements of s. 240.40203 and the maintain the

31  equivalent of a grade point average requirement of 2.75 on a

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  1  4.0 scale, or the equivalent, for all postsecondary education

  2  work attempted. A student may have, with an opportunity for

  3  reinstatement one restoration time as provided in this act.

  4         (4)  Beginning with the fall term of 2003, a Florida

  5  Gold Seal Vocational Scholars award may only be used by

  6  students who enroll in programs of 2 years or less at a

  7  vocational-technical institution, a community college, or a

  8  junior college unless the award is a renewal of an initial

  9  award issued prior to the fall term of 2003 or as otherwise

10  provided for in this section. A student may use an award for a

11  program at a 4-year institution if the program has been

12  identified by the Articulation Coordinating Committee pursuant

13  to subsection (1), the student meets the minimum State

14  University System admissions requirements, and the institution

15  certifies annually the student's continued enrollment in such

16  program.

17         (5)  Upon successful completion of an associate degree

18  program or 60 hours, an award recipient who meets the renewal

19  criteria in subsection (3) and enrolls in a baccalaureate

20  degree program at an eligible postsecondary education

21  institution is eligible to transfer to the Florida Medallion

22  Scholars award component of the Florida Bright Futures

23  Scholarship Program. Other than initial eligibility criteria,

24  all other requirements of the Florida Medallion Scholars award

25  shall apply to a student who transfers to that program

26  pursuant to the provisions of this subsection. The number of

27  hours for which a student may receive a Florida Medallion

28  Scholars award shall be calculated by subtracting from the

29  student's total eligibility pursuant to s. 240.40206(2) the

30  number of hours for which the student has already received

31  funding under the Florida Bright Futures Scholarship Program.

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  1         (6)  If a Florida Gold Seal Vocational Scholar received

  2  an initial award prior to the fall term of 2003, and has a

  3  cumulative grade point average of 2.75 in all postsecondary

  4  education work attempted, the Department of Education may

  5  transfer the student to the Florida Medallion Scholars award

  6  component of the Florida Bright Futures Scholarship Program at

  7  any renewal period.  Other than initial eligibility criteria,

  8  all other requirements of the Florida Medallion Scholars award

  9  shall apply to a student who transfers to that program

10  pursuant to the provisions of this subsection.  The number of

11  hours for which a student may receive a Florida Medallion

12  Scholars award shall be calculated by subtracting from the

13  student's total eligibility pursuant to s. 240.40206(2) the

14  number of hours for which the student has already received

15  funding under the Florida Bright Futures Scholarship Program.

16         (7)  A student who graduated from high school in 1997

17  or earlier and who was eligible for the Vocational Gold Seal

18  Endorsement Scholarship Program award pursuant to s. 240.4021

19  is eligible for a Florida Gold Seal Vocational Scholars award.

20         (4)  A student may earn a Florida Gold Seal Vocational

21  Scholarship for 110 percent of the number of credit hours

22  required to complete the program, up to 90 credit hours or the

23  equivalent. A Florida Gold Seal Scholar who has a cumulative

24  grade point average of 2.75 in all postsecondary education

25  work attempted may apply for a Florida Merit Scholars award at

26  any renewal period. All other provisions of that program

27  apply, and the credit-hour limitation must be calculated by

28  subtracting from the student's total eligibility the number of

29  credit hours the student attempted while earning the Gold Seal

30  Vocational Scholarship.

31

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  1         Section 12.  Section 240.40211, Florida Statutes, is

  2  created to read:

  3         240.40211  Florida Bright Futures Scholarship Program

  4  targeted occupations.--

  5         (1)(a)  Using information provided by the Workforce

  6  Estimating Conference, the Department of Education, in

  7  consultation with the Legislature, shall identify targeted

  8  occupations that are high demand, high wage, and high skill

  9  for which the state's postsecondary education institutions

10  provide the necessary education and training.

11         (b)  The Department of Education shall identify the

12  specific associate and baccalaureate degree programs,

13  certificate programs, and applied technology diploma programs

14  that are offered by postsecondary education institutions and

15  prepare students for employment in the targeted occupations.

16  The department shall provide such information to the

17  postsecondary education institutions that participate in the

18  Florida Bright Futures Scholarship Program.

19         (c)  Identification of targeted occupations and degree,

20  certificate, and diploma programs shall be completed, and

21  updated annually thereafter, for use in providing awards

22  pursuant to this section beginning with the 2002-2003 fall

23  academic term.

24         (2)  A Florida Bright Futures Scholarship award

25  recipient who is enrolled at a vocational-technical

26  institution, a community college, or a junior college in a

27  program identified pursuant to paragraph (1)(b) is eligible to

28  receive an additional $250 per semester, or the equivalent,

29  for postsecondary education-related expenses.

30         (3)  A Florida Bright Futures Scholarship award

31  recipient who is enrolled at a baccalaureate-degree-granting

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  1  institution in the upper division of a program identified

  2  pursuant to paragraph (1)(b) is eligible to receive an

  3  additional $500 per semester, or the equivalent, for

  4  postsecondary education-related expenses.

  5         (4)  Institutions that participate in the Florida

  6  Bright Futures Scholarship Program and offer a program

  7  identified pursuant to paragraph (1)(b) shall advise their

  8  students of the availability of the awards provided pursuant

  9  to this section.

10         (5)  The department shall establish procedures for

11  institutions to certify to the department the initial and

12  continued eligibility status of any student who is eligible to

13  receive an award pursuant to this section.  A student's

14  continued enrollment in an eligible program shall be certified

15  by the institution each academic year.

16         (6)  The department shall evaluate this component of

17  the Florida Bright Futures Scholarship Program from its

18  inception to determine, of the total number of students who

19  receive awards pursuant to this section, the number who become

20  employed in the occupation for which the award was provided.

21  This evaluation shall be reported on an annual basis to the

22  Governor and the Legislature.

23         (7)  This award component of the Florida Bright Futures

24  Scholarship Program shall be implemented to the extent funded

25  in the General Appropriations Act.  When funds are not

26  sufficient to make full awards, the department shall reduce

27  the amount of each recipient's award pro rata.

28         Section 13.  Sections 240.40208 and 240.40242, Florida

29  Statutes, are repealed.

30         Section 14.  Florida Bright Futures Scholarship Testing

31  Program.--

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  1         (1)  By January 1, 2002, the Articulation Coordinating

  2  Committee shall identify the minimum scores, maximum credit,

  3  and course or courses for which credit is to be awarded for

  4  each College Level Examination Program (CLEP) general

  5  examination, CLEP subject examination, College Board Advanced

  6  Placement Program examination, and International Baccalaureate

  7  examination.  In addition, the Articulation Coordinating

  8  Committee shall identify such courses in the general education

  9  core curriculum of each state university and public community

10  college.

11         (2)  Each community college and state university must

12  award credit for specific courses for which competency has

13  been demonstrated by successful passage of one of these

14  examinations unless the award of credit duplicates credit

15  already awarded.  Community colleges and universities may not

16  exempt students from courses without the award of credit if

17  competencies have been so demonstrated.

18         (3)  Beginning with initial award recipients for the

19  2002-2003 academic year and continuing thereafter, students

20  eligible for a Florida Academic Scholars award or a Florida

21  Medallion Scholars award who are admitted to and enroll in a

22  community college or state university shall, prior to

23  registering for courses that may be earned through a CLEP

24  examination and not later than registration for their second

25  term, complete at least five examinations from those specified

26  in subsection (1), one in each of the following areas:

27  English; humanities; mathematics; natural sciences; and social

28  sciences.  Successful completion of dual enrollment courses,

29  Advanced Placement examinations, and International

30  Baccalaureate examinations taken prior to high school

31  graduation satisfy this requirement.  The Articulation

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  1  Coordinating Committee shall identify the examinations that

  2  satisfy each component of this requirement.

  3         (4)  Each community college and state university shall

  4  pay for the CLEP examinations required pursuant to this

  5  section from the funds appropriated from the Educational

  6  Enhancement Trust Fund.  The institution shall not charge the

  7  student for services that include preparation and

  8  administration of the test, access to a student guide to

  9  prepare for the test, and recordkeeping and reporting of each

10  student's test results to the department.

11         (5)  The credit awarded pursuant to this section shall

12  apply toward the 120 hours of college credit required pursuant

13  to s. 240.115(6).

14         (6)  The maximum number of credit hours for which a

15  student is eligible to receive a Florida Bright Futures

16  Scholarship Program award shall be reduced by the number of

17  hours for which credit is awarded pursuant to this section.

18         Section 15.  Subsection (1) of section 240.404, Florida

19  Statutes, is amended to read:

20         240.404  General requirements for student eligibility

21  for state financial aid.--

22         (1)(a)  The general requirements for eligibility of

23  students for state financial aid awards consist of the

24  following:

25         1.  Achievement of the academic requirements of and

26  acceptance at a state university or community college; a

27  nursing diploma school approved by the Florida Board of

28  Nursing; a Florida college, university, or community college

29  which is accredited by an accrediting agency recognized by the

30  United States Department of Education a member of the

31  Commission on Recognition of Postsecondary Accreditation; any

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  1  Florida institution the credits of which are acceptable for

  2  transfer to state universities; any area technical center; or

  3  any private vocational-technical institution accredited by an

  4  accrediting agency recognized by the United States Department

  5  of Education a member of the Commission on Recognition of

  6  Postsecondary Accreditation.

  7         2.a.  Residency in this state for no less than 1 year

  8  preceding the award of aid for a program established pursuant

  9  to s. 240.409, s. 240.4095, s. 240.4097, s. 240.412, s.

10  240.4125, s. 240.413, s. 240.4987, s. 240.605, or s. 240.606.

11  Residency in this state must be for purposes other than to

12  obtain an education. Resident status for purposes of receiving

13  state financial aid awards shall be determined in the same

14  manner as resident status for tuition purposes pursuant to s.

15  240.1201 and rules of the State Board of Education.

16         b.  A person who has been properly classified as a

17  resident by a postsecondary institution for initial receipt of

18  state-funded student financial assistance and has been

19  determined eligible to participate in a financial assistance

20  program may continue to qualify as a resident for state-funded

21  financial aid programs if he or she maintains continuous

22  enrollment at the postsecondary institution, with no break in

23  enrollment greater than 12 consecutive months.

24         3.  Submission of certification attesting to the

25  accuracy, completeness, and correctness of information

26  provided to demonstrate a student's eligibility to receive

27  state financial aid awards. Falsification of such information

28  shall result in the denial of any pending application and

29  revocation of any award currently held to the extent that no

30  further payments shall be made. Additionally, students who

31  knowingly make false statements in order to receive state

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  1  financial aid awards shall be guilty of a misdemeanor of the

  2  second degree subject to the provisions of s. 837.06 and shall

  3  be required to return all state financial aid awards

  4  wrongfully obtained.

  5         (b)1.  Eligibility for the renewal of undergraduate

  6  financial aid awards shall be evaluated at the end of the

  7  second semester or third quarter of each academic year.  As a

  8  condition for renewal, a student shall:

  9         a.  Have earned a minimum cumulative grade point

10  average of 2.0 on a 4.0 scale; and

11         b.  Have earned, for full-time study, 12 credits per

12  term or the equivalent for the number of terms for which aid

13  was received.

14         2.  A student who earns the minimum number of credits

15  required for renewal, but who fails to meet the minimum 2.0

16  cumulative grade point average, may be granted a probationary

17  award for up to the equivalent of 1 academic year and shall be

18  required to earn a cumulative grade point average of 2.0 on a

19  4.0 scale by the end of the probationary period to be eligible

20  for subsequent renewal.  A student who receives a probationary

21  award and who fails to meet the conditions for renewal by the

22  end of his or her probationary period shall be ineligible to

23  receive additional awards for the equivalent of 1 academic

24  year following his or her probationary period. Each such

25  student may, however, reapply for assistance during a

26  subsequent application period and may be eligible for an award

27  if he or she has earned a cumulative grade point average of

28  2.0 on a 4.0 scale.

29         3.  A student who fails to earn the minimum number of

30  credits required for renewal shall lose his or her eligibility

31  for renewal for a period equivalent to 1 academic year.

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  1  However, the student may reapply during a subsequent

  2  application period and may be eligible for an award if he or

  3  she has earned a minimum cumulative grade point average of 2.0

  4  on a 4.0 scale.

  5         4.  Students who receive state student aid and

  6  subsequently fail to meet state academic progress requirements

  7  due to verifiable illness or other emergencies may be granted

  8  an exception from the academic requirements.  Such students

  9  shall make a written appeal to the institution.  The appeal

10  shall include a description and verification of the

11  circumstances. Verification of illness or other emergencies

12  may include but not be limited to a physician's statement or

13  written statement of a parent or college official.  The

14  institution shall recommend exceptions with necessary

15  documentation to the department.  The department may accept or

16  deny such recommendations for exception from the institution.

17         Section 16.  Notwithstanding subsection (7) of section

18  3 of chapter 2000-321, Laws of Florida, sections 240.2985 and

19  240.6054, Florida Statutes, shall not stand repealed on

20  January 7, 2003, and are reenacted, renumbered as section

21  240.4084, Florida Statutes, and amended to read:

22         (Substantial rewording of sections. See ss.

23         240.2985 and 240.6054, F.S., for present text.)

24         240.4084  Ethics in Business Scholarship Program.--The

25  Ethics in Business Scholarship Program is created to provide

26  scholarships to students who are enrolled in postsecondary

27  education institutions and who meet the general requirements

28  for student eligibility for state financial aid pursuant to s.

29  240.404.  Moneys appropriated and allocated for such

30  scholarships shall be matched by private donations for the

31  purpose of providing ethics in business scholarships.  The

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  1  Ethics in Business Scholarship Program shall consist of the

  2  following components:

  3         (1)  Moneys appropriated from the Insurance

  4  Commissioner's Regulatory Trust Fund to the Trust Fund for

  5  Major Gifts, pursuant to section 2 of chapter 97-381, Laws of

  6  Florida, shall be allocated to each university foundation on a

  7  matching basis equal to the amount of private funds received

  8  by such foundation for program purposes.  Moneys appropriated

  9  and allocated to university foundations for purposes of the

10  program shall be used to create endowments to provide

11  scholarships to undergraduate students enrolled in state

12  institutions of higher learning who register for one or more

13  credit hours in business ethics courses and who have

14  demonstrated a commitment to serve the interests of their

15  community.  First priority for award of scholarships shall be

16  given to students who demonstrate financial need.  The Board

17  of Regents shall administer the provisions of this subsection.

18         (2)  Moneys transferred from the Insurance

19  Commissioner's Regulatory Trust Fund to the State Student

20  Financial Assistance Trust Fund, pursuant to section 3 of

21  chapter 97-381, Laws of Florida, shall be allocated to provide

22  ethics in business scholarships to students enrolled in public

23  community colleges and independent postsecondary education

24  institutions eligible to participate in the William L. Boyd,

25  IV, Florida Resident Access Grant Program under s. 240.605.

26  The funds shall be allocated to institutions for scholarships

27  in the following ratio: two-thirds for community colleges and

28  one-third for eligible independent institutions. These funds

29  shall be allocated to institutions that provide an equal

30  amount of matching funds generated by private donors for the

31  purpose of providing ethics in business scholarships. The

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  1  Department of Education shall administer the provisions of

  2  this subsection and may adopt rules for such administration.

  3  Notwithstanding any other provision of law, the State Board of

  4  Administration shall have the authority to invest the funds

  5  appropriated under this subsection.

  6

  7  Each institution that receives an allocation of funds shall

  8  submit to the Legislature an annual report of the matching

  9  funds collected and a profile of scholarship award recipients.

10         Section 17.  Section 240.409, Florida Statutes, is

11  amended to read:

12         240.409  Florida Public Student Assistance Grant

13  Program; eligibility for grants.--

14         (1)  There is hereby created a Florida Public Student

15  Assistance Grant Program. The program shall be administered by

16  the participating institutions in accordance with rules of the

17  state board.

18         (2)  The department is directed to establish an initial

19  application deadline for funds administered pursuant to this

20  section.

21         (3)  Using the priorities established in this section

22  and in s. 240.40975, institutions shall first award funds

23  administered pursuant to this section to students who meet the

24  initial application deadline established pursuant to

25  subsection (2).  An institution may, at its discretion, award

26  any remaining funds from this program to students who apply

27  after the deadline date and who are otherwise eligible

28  pursuant to this section.

29         (4)(2)(a)  State student assistance grants through the

30  program may be made only to full-time degree-seeking students

31  who enroll in at least 6 semester hours, or the equivalent,

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  1  per semester and who meet the general requirements for student

  2  eligibility as provided in s. 240.404, except as otherwise

  3  provided in this section.  Such grants shall be awarded

  4  annually for the amount of demonstrated unmet need for the

  5  cost of education and may not exceed an amount equal to the

  6  average prior academic year cost of matriculation fees and

  7  other registration fees for 30 credit hours at state

  8  universities or such other amount as specified in the General

  9  Appropriations Act, to any recipient. A demonstrated unmet

10  need of less than $200 shall render the applicant ineligible

11  for a state student assistance grant. Recipients of such

12  grants must have been accepted at a state university or

13  community college authorized by Florida law.  No student may

14  receive an award for more than the equivalent of 9 semesters

15  or 14 quarters of full-time enrollment, except as otherwise

16  provided in s. 240.404(3).

17         (b)  A student applying for a Florida public student

18  assistance grant shall be required to apply for the Pell

19  Grant. The Pell Grant entitlement shall be considered when

20  conducting an assessment of the financial resources available

21  to each student.

22         (c)  Priority in the distribution of grant moneys shall

23  be given to students with the lowest total family resources,

24  in accordance with a nationally recognized system of need

25  analysis. Using the system of need analysis, the department

26  shall establish a maximum expected family contribution. An

27  institution may not make a grant from this program to a

28  student whose expected family contribution exceeds the level

29  established by the department.  An institution may not impose

30  additional criteria to determine a student's eligibility to

31  receive a grant award.

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  1         (d)  Each participating institution shall report, to

  2  the department by the established date, the eligible students

  3  to whom grant moneys are disbursed each academic term and

  4  indicate whether or not the student met the application

  5  deadline established pursuant to subsection (2). Each

  6  institution shall also report to the department necessary

  7  demographic and eligibility data for such students.

  8         (5)(3)  Based on the unmet financial need of an

  9  eligible applicant, the amount of a Florida public student

10  assistance grant must be between $200 and the weighted average

11  of the cost of matriculation and other registration fees for

12  30 credit hours at state universities per academic year or the

13  amount specified in the General Appropriations Act.

14         (6)(4)(a)  The funds appropriated for the Florida

15  Public Student Assistance Grant shall be distributed to

16  eligible institutions in accordance with a formula recommended

17  by the Department of Education's Florida Council of Student

18  Financial Aid Advisors and reviewed by the Postsecondary

19  Education Planning Commission, the State Board of Community

20  Colleges, and the Board of Regents. The formula shall consider

21  at least the prior year's distribution of funds, the number of

22  full-time eligible applicants who did not receive awards, the

23  number of eligible applicants who met the application

24  deadline, the standardization of the expected family

25  contribution, and provisions for unused funds.

26         (b)  Payment of Florida public student assistance

27  grants shall be transmitted to the president of the state

28  university or community college, or to his or her

29  representative, in advance of the registration period.

30  Institutions shall notify students of the amount of their

31  awards.

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  1         (c)  The eligibility status of each student to receive

  2  a disbursement shall be determined by each institution as of

  3  the end of its regular registration period, inclusive of a

  4  drop-add period.  Institutions shall not be required to

  5  reevaluate a student's eligibility status after this date for

  6  purposes of changing eligibility determinations previously

  7  made.

  8         (d)  Institutions shall certify to the department the

  9  amount of funds disbursed to each student, shall indicate

10  whether or not the student met the application deadline

11  established pursuant to subsection (2), and shall remit to the

12  department any undisbursed advances by June 1 of each year.

13         (7)(5)  Funds appropriated by the Legislature for state

14  student assistance grants shall be deposited in the State

15  Student Financial Assistance Trust Fund. Notwithstanding the

16  provisions of s. 216.301 and pursuant to s. 216.351, any

17  balance in the trust fund at the end of any fiscal year that

18  has been allocated to the Florida Public Student Assistance

19  Grant Program shall remain therein and shall be available for

20  carrying out the purposes of this section.

21         (8)(6)  The State Board of Education shall establish

22  rules necessary to implement this section.

23         Section 18.  Section 240.4095, Florida Statutes, is

24  amended to read:

25         240.4095  Florida Private Student Assistance Grant

26  Program; eligibility for grants.--

27         (1)  There is hereby created a Florida Private Student

28  Assistance Grant Program. The program shall be administered by

29  the participating institutions in accordance with rules of the

30  state board.

31

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  1         (2)  The department is directed to establish an initial

  2  application deadline for funds administered pursuant to this

  3  section.

  4         (3)  Using the priorities established in this section

  5  and in s. 240.40975, institutions shall first award funds

  6  administered pursuant to this section to students who met the

  7  initial application deadline established pursuant to

  8  subsection (2).  An institution may, at its discretion, award

  9  any remaining funds from this program to students who apply

10  after the deadline date and who are otherwise eligible

11  pursuant to this section.

12         (4)(2)(a)  Florida private student assistance grants

13  from the State Student Financial Assistance Trust Fund may be

14  made only to full-time degree-seeking students who enroll in

15  at least 6 semester hours, or the equivalent, per semester and

16  who meet the general requirements for student eligibility as

17  provided in s. 240.404, except as otherwise provided in this

18  section.  Such grants shall be awarded for the amount of

19  demonstrated unmet need for tuition and fees and may not

20  exceed an amount equal to the average matriculation and other

21  registration fees for 30 credit hours at state universities

22  plus $1,000 per academic year, or as specified in the General

23  Appropriations Act, to any applicant.  A demonstrated unmet

24  need of less than $200 shall render the applicant ineligible

25  for a Florida private student assistance grant. Recipients of

26  such grants must have been accepted at a

27  baccalaureate-degree-granting independent nonprofit college or

28  university, which is accredited by the Commission on Colleges

29  of the Southern Association of Colleges and Schools and which

30  is located in and chartered as a domestic corporation by the

31  state.  No student may receive an award for more than the

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  1  equivalent of 9 semesters or 14 quarters of full-time

  2  enrollment, except as otherwise provided in s. 240.404(3).

  3         (b)  A student applying for a Florida private student

  4  assistance grant shall be required to apply for the Pell

  5  Grant. The Pell Grant entitlement shall be considered when

  6  conducting an assessment of the financial resources available

  7  to each student.

  8         (c)  Priority in the distribution of grant moneys shall

  9  be given to students with the lowest total family resources,

10  in accordance with a nationally recognized system of need

11  analysis. Using the system of need analysis, the department

12  shall establish a maximum expected family contribution. An

13  institution may not make a grant from this program to a

14  student whose expected family contribution exceeds the level

15  established by the department.  An institution may not impose

16  additional criteria to determine a student's eligibility to

17  receive a grant award.

18         (d)  Each participating institution shall report, to

19  the department by the established date, the eligible students

20  to whom grant moneys are disbursed each academic term and

21  indicate whether or not the student met the application

22  deadline established pursuant to subsection (2). Each

23  institution shall also report to the department necessary

24  demographic and eligibility data for such students.

25         (5)(3)  Based on the unmet financial need of an

26  eligible applicant, the amount of a Florida private student

27  assistance grant must be between $200 and the average cost of

28  matriculation and other registration fees for 30 credit hours

29  at state universities plus $1,000 per academic year or the

30  amount specified in the General Appropriations Act.

31

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  1         (6)(4)(a)  The funds appropriated for the Florida

  2  Private Student Assistance Grant shall be distributed to

  3  eligible institutions in accordance with a formula recommended

  4  by the Department of Education's Florida Council of Student

  5  Financial Aid Advisors and reviewed by the Postsecondary

  6  Education Planning Commission and the Independent Colleges and

  7  Universities of Florida. The formula shall consider at least

  8  the prior year's distribution of funds, the number of

  9  full-time eligible applicants who did not receive awards, the

10  number of eligible applicants who met the application

11  deadline, the standardization of the expected family

12  contribution, and provisions for unused funds.

13         (b)  Payment of Florida private student assistance

14  grants shall be transmitted to the president of the college or

15  university, or to his or her representative, in advance of the

16  registration period. Institutions shall notify students of the

17  amount of their awards.

18         (c)  The eligibility status of each student to receive

19  a disbursement shall be determined by each institution as of

20  the end of its regular registration period, inclusive of a

21  drop-add period.  Institutions shall not be required to

22  reevaluate a student's eligibility status after this date for

23  purposes of changing eligibility determinations previously

24  made.

25         (d)  Institutions shall certify to the department the

26  amount of funds disbursed to each student, shall indicate

27  whether or not the student met the application deadline

28  established pursuant to subsection (2), and shall remit to the

29  department any undisbursed advances by June 1 of each year.

30         (e)  Each institution that receives moneys through the

31  Florida Private Student Assistance Grant Program shall cause

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  1  to be prepared a biennial report that includes an independent

  2  external audit of the institution's administration of the

  3  program and a complete accounting of moneys in the State

  4  Student Financial Assistance Trust Fund allocated to the

  5  institution for the program. Such report shall be submitted to

  6  the department on or before March 1 every other year.  The

  7  department may conduct its own annual or biennial audit of an

  8  institution's administration of the program and its allocated

  9  funds in lieu of the required biennial report and independent

10  external audit.  The department may suspend or revoke an

11  institution's eligibility to receive future moneys from the

12  trust fund for the program or request a refund of any moneys

13  overpaid to the institution through the trust fund for the

14  program if the department finds that an institution has not

15  complied with the provisions of this section. Any refund

16  requested pursuant to this paragraph shall be remitted within

17  60 days.

18         (7)(5)  Funds appropriated by the Legislature for

19  Florida private student assistance grants shall be deposited

20  in the State Student Financial Assistance Trust Fund.

21  Notwithstanding the provisions of s. 216.301 and pursuant to

22  s. 216.351, any balance in the trust fund at the end of any

23  fiscal year that has been allocated to the Florida Private

24  Student Assistance Grant Program shall remain therein and

25  shall be available for carrying out the purposes of this

26  section and as otherwise provided by law.

27         (8)(6)  The State Board of Education shall adopt rules

28  necessary to implement this section.

29         Section 19.  Section 240.4097, Florida Statutes, is

30  amended to read:

31

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  1         240.4097  Florida Postsecondary Student Assistance

  2  Grant Program; eligibility for grants.--

  3         (1)  There is hereby created a Florida Postsecondary

  4  Student Assistance Grant Program. The program shall be

  5  administered by the participating institutions in accordance

  6  with rules of the state board.

  7         (2)  The department is directed to establish an initial

  8  application deadline for funds administered pursuant to this

  9  section.

10         (3)  Using the priorities established in this section

11  and s. 240.40975, institutions shall first award funds

12  administered pursuant to this section to students who meet the

13  initial application deadline established pursuant to

14  subsection (2).  An institution may, at its discretion, award

15  any remaining funds from this program to students who apply

16  after the deadline date and who are otherwise eligible

17  pursuant to this section.

18         (4)(2)(a)  Florida postsecondary student assistance

19  grants through the State Student Financial Assistance Trust

20  Fund may be made only to full-time degree-seeking students who

21  enroll in at least 6 semester hours, or the equivalent, per

22  semester and who meet the general requirements for student

23  eligibility as provided in s. 240.404, except as otherwise

24  provided in this section.  Such grants shall be awarded for

25  the amount of demonstrated unmet need for tuition and fees and

26  may not exceed an amount equal to the average prior academic

27  year cost of matriculation and other registration fees for 30

28  credit hours at state universities plus $1,000 per academic

29  year, or as specified in the General Appropriations Act, to

30  any applicant.  A demonstrated unmet need of less than $200

31  shall render the applicant ineligible for a Florida

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  1  postsecondary student assistance grant.  Recipients of such

  2  grants must have been accepted at a postsecondary institution

  3  that is located in the state and that is:

  4         1.  A private nursing diploma school approved by the

  5  Florida Board of Nursing; or

  6         2.  An institution either licensed by the State Board

  7  of Independent Colleges and Universities or exempt from

  8  licensure pursuant to s. 246.085(1)(a), excluding those

  9  institutions the students of which are eligible to receive a

10  Florida private student assistance grant pursuant to s.

11  240.4095.

12

13  No student may receive an award for more than the equivalent

14  of 9 semesters or 14 quarters of full-time enrollment, except

15  as otherwise provided in s. 240.404(3).

16         (b)  A student applying for a Florida postsecondary

17  student assistance grant shall be required to apply for the

18  Pell Grant. The Pell Grant entitlement shall be considered

19  when conducting an assessment of the financial resources

20  available to each student.

21         (c)  Priority in the distribution of grant moneys shall

22  be given to students with the lowest total family resources,

23  in accordance with a nationally recognized system of need

24  analysis. Using the system of need analysis, the department

25  shall establish a maximum expected family contribution. An

26  institution may not make a grant from this program to a

27  student whose expected family contribution exceeds the level

28  established by the department.  An institution may not impose

29  additional criteria to determine a student's eligibility to

30  receive a grant award.

31

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  1         (d)  Each participating institution shall report, to

  2  the department by the established date, the eligible students

  3  to whom grant moneys are disbursed each academic term and

  4  indicate whether or not the student met the application

  5  deadline established pursuant to subsection (2). Each

  6  institution shall also report to the department necessary

  7  demographic and eligibility data for such students.

  8         (5)(3)  Based on the unmet financial need of an

  9  eligible applicant, the amount of a Florida postsecondary

10  student assistance grant must be between $200 and the average

11  cost of matriculation and other registration fees for 30

12  credit hours at state universities plus $1,000 per academic

13  year or the amount specified in the General Appropriations

14  Act.

15         (6)(4)(a)  The funds appropriated for the Florida

16  Postsecondary Student Assistance Grant shall be distributed to

17  eligible institutions in accordance with a formula recommended

18  by the Department of Education's Florida Council of Student

19  Financial Aid Advisors and reviewed by the Postsecondary

20  Education Planning Commission and the Florida Association of

21  Postsecondary Schools and Colleges. The formula shall consider

22  at least the prior year's distribution of funds, the number of

23  full-time eligible applicants who did not receive awards, the

24  number of eligible applicants who met the application

25  deadline, the standardization of the expected family

26  contribution, and provisions for unused funds.

27         (b)  Payment of Florida postsecondary student

28  assistance grants shall be transmitted to the president of the

29  eligible institution, or to his or her representative, in

30  advance of the registration period. Institutions shall notify

31  students of the amount of their awards.

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  1         (c)  The eligibility status of each student to receive

  2  a disbursement shall be determined by each institution as of

  3  the end of its regular registration period, inclusive of a

  4  drop-add period.  Institutions shall not be required to

  5  reevaluate a student's eligibility status after this date for

  6  purposes of changing eligibility determinations previously

  7  made.

  8         (d)  Institutions shall certify to the department the

  9  amount of funds disbursed to each student, shall indicate

10  whether or not the student met the application deadline

11  established pursuant to subsection (2), and shall remit to the

12  department any undisbursed advances by June 1 of each year.

13         (e)  Each institution that receives moneys through the

14  Florida Postsecondary Student Assistance Grant Program shall

15  cause to be prepared a biennial report that includes an

16  independent external audit of the institution's administration

17  of the program and a complete accounting of moneys in the

18  State Student Financial Assistance Trust Fund allocated to the

19  institution for the program.  Such report shall be submitted

20  to the department on or before March 1 every other year.  The

21  department may conduct its own annual or biennial audit of an

22  institution's administration of the program and its allocated

23  funds in lieu of the required biennial report and independent

24  external audit. The department may suspend or revoke an

25  institution's eligibility to receive future moneys from the

26  trust fund for the program or request a refund of any moneys

27  overpaid to the institution through the trust fund for the

28  program if the department finds that an institution has not

29  complied with the provisions of this section.  Any refund

30  requested pursuant to this paragraph shall be remitted within

31  60 days.

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  1         (7)(5)  Any institution that was eligible to receive

  2  state student assistance grants on January 1, 1989, and that

  3  is not eligible to receive grants pursuant to s. 240.4095 is

  4  eligible to receive grants pursuant to this section.

  5         (8)(6)  Funds appropriated by the Legislature for

  6  Florida postsecondary student assistance grants shall be

  7  deposited in the State Student Financial Assistance Trust

  8  Fund. Notwithstanding the provisions of s. 216.301 and

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

10  end of any fiscal year that has been allocated to the Florida

11  Postsecondary Student Assistance Grant Program shall remain

12  therein and shall be available for carrying out the purposes

13  of this section and as otherwise provided by law.

14         (9)(7)  The State Board of Education shall adopt rules

15  necessary to implement this section.

16         Section 20.  Section 240.40975, Florida Statutes, is

17  created to read:

18         240.40975  Florida student assistance grant programs;

19  priority for receiving grants.--Priority in the distribution

20  of grants provided pursuant to s. 240.409, s. 240.4095, or s.

21  240.4097 shall be given to eligible applicants in the

22  following order:

23         (1)  To full-time students with the greatest financial

24  need as determined by the department.

25         (2)  To full-time students with financial need who

26  graduate from public Florida high schools, who have completed

27  the high school courses that are adopted by the Board of

28  Regents and recommended by the State Board of Community

29  Colleges as college-preparatory academic courses, and who rank

30  in the top 20 percent of their high school graduating class.

31  Class rank shall be determined by the Department of Education.

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  1         (3)  To other full-time students with financial need.

  2         (4)  To part-time students with financial need, if

  3  funds are remaining.

  4         Section 21.  Subsection (3) of section 240.4128,

  5  Florida Statutes, is amended to read:

  6         240.4128  Minority teacher education scholars

  7  program.--There is created the minority teacher education

  8  scholars program, which is a collaborative performance-based

  9  scholarship program for African-American, Hispanic-American,

10  Asian-American, and Native American students. The participants

11  in the program include Florida's public community colleges and

12  its public and private universities that have teacher

13  education programs.

14         (3)  The total amount appropriated annually for new

15  scholarships in the program must be divided by $4,000 and by

16  the number of participating colleges and universities. Each

17  participating institution has access to the same number of

18  scholarships and may award all of them to eligible minority

19  students. If a college or university does not award all of its

20  scholarships by the date set by the program administration at

21  the Florida Fund for Minority Teachers, Inc., the remaining

22  scholarships must be transferred to another institution that

23  has eligible students. Each participating institution shall

24  report to the department, by the established date, the

25  eligible students to whom scholarships are disbursed each

26  academic term.  Each institution shall also report to the

27  department necessary demographic and eligibility data for such

28  students.

29         Section 22.  Subsection (6) of section 240.437, Florida

30  Statutes, is amended to read:

31

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  1         240.437  Student financial aid planning and

  2  development.--

  3         (6)  Any Effective July 1, 1992, all new and existing

  4  financial assistance programs authorized by state law that are

  5  administered by the Bureau of Student Financial Assistance of

  6  the Department of Education and that under this part which are

  7  not funded for 3 consecutive years after enactment shall stand

  8  repealed.  Financial aid programs provided under this part on

  9  July 1, 1992, which lose funding for 3 consecutive years shall

10  stand repealed.  The Bureau Office of Student Financial

11  Assistance of the Department of Education shall annually

12  review the legislative appropriation of financial aid to

13  identify such programs.

14         Section 23.  Section 240.465, Florida Statutes, is

15  amended to read:

16         240.465  Delinquent accounts.--

17         (1)  The Department of Education is directed to exert

18  every lawful and reasonable effort to collect all delinquent

19  unpaid and uncanceled scholarship loan notes, student loan

20  notes, and defaulted guaranteed loan notes.

21         (2)  The department is authorized to establish a

22  recovery account into which unpaid and uncanceled scholarship

23  loan note, student loan note, and defaulted guaranteed loan

24  note accounts may be transferred.

25         (3)  The department is authorized to settle any

26  delinquent unpaid and uncanceled scholarship loan notes,

27  student loan notes, and defaulted guaranteed loan notes and to

28  employ the service of a collection agent when deemed advisable

29  in collecting delinquent or defaulted accounts.  However, no

30  collection agent may be paid a commission in excess of 35

31  percent of the amount collected.  Any expense incurred by the

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  1  department in enforcing the collection of a loan note may be

  2  borne by the signer of the note and may be added to the amount

  3  of the principal of such note.

  4         (4)  The department is authorized to charge off unpaid

  5  and uncanceled scholarship loan notes and student loan notes

  6  which are at least 3 years delinquent and which prove

  7  uncollectible after good faith collection efforts.  However, a

  8  delinquent account with a past due balance of $25 or less may

  9  be charged off as uncollectible when it becomes 6 months past

10  due and the cost of further collection effort or assignment to

11  a collection agent would not be warranted.

12         (5)  No individual borrower who has been determined to

13  be in default in making legally required scholarship loan,

14  student loan, or guaranteed loan repayments shall be furnished

15  with his or her academic transcripts or other student records

16  until such time as the loan is paid in full or the default

17  status has been removed.

18         (5)(6)  The department is authorized to charge an

19  individual borrower who has been determined to be in default

20  in making legally required loan repayments the maximum

21  interest rate authorized by law.

22         (6)(7)  The State Board of Education shall adopt such

23  rules as are necessary to regulate the collection, settlement,

24  and charging off of delinquent unpaid and uncanceled

25  scholarship loan notes, student loan notes, and defaulted

26  guaranteed loan notes.

27         Section 24.  Notwithstanding subsection (7) of section

28  3 of chapter 2000-321, Laws of Florida, section 240.551,

29  Florida Statutes, shall not stand repealed on January 7, 2003,

30  and is reenacted and amended to read:

31         240.551  Florida Prepaid College Program.--

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  1         (1)  LEGISLATIVE INTENT.--The Legislature recognizes

  2  that educational opportunity at the postsecondary level is a

  3  critical state interest.  It further recognizes that

  4  educational opportunity is best ensured through the provision

  5  of postsecondary institutions that are geographically and

  6  financially accessible. Accordingly, it is the intent of the

  7  Legislature that a program be established through which many

  8  of the costs associated with postsecondary attendance may be

  9  paid in advance and fixed at a guaranteed level for the

10  duration of undergraduate enrollment.  It is similarly the

11  intent of the Legislature to provide a program that fosters

12  timely financial planning for postsecondary attendance and to

13  encourage employer participation in such planning through

14  program contributions on behalf of employees and the

15  dependents of employees.

16         (2)  DEFINITIONS.--

17         (a)  "Advance payment contract" means a contract

18  entered into by the board and a purchaser pursuant to this

19  section.

20         (b)  "Board" means the Florida Prepaid College Board.

21         (c)  "Fund" means the Florida Prepaid College Trust

22  Fund.

23         (d)  "Program" means the Florida Prepaid College

24  Program.

25         (e)  "Purchaser" means a person who makes or is

26  obligated to make advance registration or dormitory residence

27  payments in accordance with an advance payment contract.

28         (f)  "Qualified beneficiary" means:

29         1.  A resident of this state at the time a purchaser

30  enters into an advance payment contract on behalf of the

31  resident;

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  1         2.  A nonresident who is the child of a noncustodial

  2  parent who is a resident of this state at the time that such

  3  parent enters into an advance payment contract on behalf of

  4  the child; or

  5         3.  For purposes of advance payment contracts entered

  6  into pursuant to subsection (22), a graduate of an accredited

  7  high school in this state who is a resident of this state at

  8  the time he or she is designated to receive the benefits of

  9  the advance payment contract.

10         (g)  "Registration fee" means matriculation fee,

11  financial aid fee, building fee, and Capital Improvement Trust

12  Fund fee.

13         (h)  "State postsecondary institution" means any

14  community college identified in s. 240.3031 or university

15  identified in s. 240.2011.

16         (3)  FLORIDA PREPAID COLLEGE PROGRAM; CREATION.--There

17  is created a Florida Prepaid College Program to provide a

18  medium through which the cost of registration and dormitory

19  residence may be paid in advance of enrollment in a state

20  postsecondary institution at a rate lower than the projected

21  corresponding cost at the time of actual enrollment.  Such

22  payments shall be combined and invested in a manner that

23  yields, at a minimum, sufficient interest to generate the

24  difference between the prepaid amount and the cost of

25  registration and dormitory residence at the time of actual

26  enrollment. Students who enroll in a state postsecondary

27  institution pursuant to this section shall be charged no fees

28  in excess of the terms delineated in the advance payment

29  contract.

30         (4)  FLORIDA PREPAID COLLEGE TRUST FUND.--There is

31  created within the State Board of Administration the Florida

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  1  Prepaid College Trust Fund.  The fund shall consist of state

  2  appropriations, moneys acquired from other governmental or

  3  private sources, and moneys remitted in accordance with

  4  advance payment contracts. All funds deposited into the trust

  5  fund may be invested pursuant to s. 215.47. Dividends,

  6  interest, and gains accruing to the trust fund shall increase

  7  the total funds available for the program. Notwithstanding the

  8  provisions of chapter 717, funds associated with terminated

  9  contracts pursuant to subsection (12) and canceled contracts

10  for which no refunds have been claimed shall increase the

11  total funds available for the program. However, the board

12  shall establish procedures for notifying purchasers who

13  subsequently cancel their contracts of any unclaimed refund

14  and shall establish a time period after which no refund may be

15  claimed by a purchaser who canceled a contract. Any balance

16  contained within the fund at the end of a fiscal year shall

17  remain therein and shall be available for carrying out the

18  purposes of the program.  In the event that dividends,

19  interest, and gains exceed the amount necessary for program

20  administration and disbursements, the board may designate an

21  additional percentage of the fund to serve as a contingency

22  fund.  Moneys contained within the fund shall be exempt from

23  the investment requirements of s. 18.10. Any funds of a

24  direct-support organization created pursuant to subsection

25  (22) shall be exempt from the provisions of this subsection.

26         (5)  PROGRAM ADMINISTRATION.--

27         (a)  The Florida Prepaid College Program shall be

28  administered by the Florida Prepaid College Board as an agency

29  of the state.  The Florida Prepaid College Board is hereby

30  created as a body corporate with all the powers of a body

31  corporate for the purposes delineated in this section.  For

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  1  the purposes of s. 6, Art. IV of the State Constitution, the

  2  board shall be assigned to and administratively housed within

  3  the State Board of Administration, but it shall independently

  4  exercise the powers and duties specified in this section.

  5         (b)  The board shall consist of seven members to be

  6  composed of the Insurance Commissioner and Treasurer, the

  7  Comptroller, the Chancellor of the Board of Regents, the

  8  Executive Director of the State Board of Community Colleges,

  9  and three members appointed by the Governor and subject to

10  confirmation by the Senate.  Each member appointed by the

11  Governor shall possess knowledge, skill, and experience in the

12  areas of accounting, actuary, risk management, or investment

13  management.  Each member of the board not appointed by the

14  Governor may name a designee to serve the board on behalf of

15  the member; however, any designee so named shall meet the

16  qualifications required of gubernatorial appointees to the

17  board. Members appointed by the Governor shall serve terms of

18  3 years.  Any person appointed to fill a vacancy on the board

19  shall be appointed in a like manner and shall serve for only

20  the unexpired term.  Any member shall be eligible for

21  reappointment and shall serve until a successor qualifies.

22  Members of the board shall serve without compensation but

23  shall be reimbursed for per diem and travel in accordance with

24  s. 112.061.  Each member of the board shall file a full and

25  public disclosure of his or her financial interests pursuant

26  to s. 8, Art. II of the State Constitution and corresponding

27  statute.

28         (c)  The board shall annually elect a board member to

29  serve as chair and a board member to serve as vice chair and

30  shall designate a secretary-treasurer who need not be a member

31  of the board.  The secretary-treasurer shall keep a record of

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  1  the proceedings of the board and shall be the custodian of all

  2  printed material filed with or by the board and of its

  3  official seal.  Notwithstanding the existence of vacancies on

  4  the board, a majority of the members shall constitute a

  5  quorum. The board shall take no official action in the absence

  6  of a quorum.  The board shall meet, at a minimum, on a

  7  quarterly basis at the call of the chair.

  8         (6)  FLORIDA PREPAID COLLEGE BOARD; DUTIES.--The board

  9  shall:

10         (a)  Appoint an executive director to serve as the

11  chief administrative and operational officer of the board and

12  to perform other duties assigned to him or her by the board.

13         (b)  Administer the fund in a manner that is

14  sufficiently actuarially sound to defray the obligations of

15  the program. The board shall annually evaluate or cause to be

16  evaluated the actuarial soundness of the fund. If the board

17  perceives a need for additional assets in order to preserve

18  actuarial soundness, the board may adjust the terms of

19  subsequent advance payment contracts to ensure such soundness.

20         (c)  Establish a comprehensive investment plan for the

21  purposes of this section with the approval of the State Board

22  of Administration. The comprehensive investment plan shall

23  specify the investment policies to be utilized by the board in

24  its administration of the fund. The board may place assets of

25  the fund in savings accounts or use the same to purchase fixed

26  or variable life insurance or annuity contracts, securities,

27  evidence of indebtedness, or other investment products

28  pursuant to the comprehensive investment plan and in such

29  proportions as may be designated or approved under that plan.

30  Such insurance, annuity, savings, or investment products shall

31  be underwritten and offered in compliance with the applicable

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  1  federal and state laws, regulations, and rules by persons who

  2  are duly authorized by applicable federal and state

  3  authorities. Within the comprehensive investment plan, the

  4  board may authorize investment vehicles, or products incident

  5  thereto, as may be available or offered by qualified companies

  6  or persons. A contract purchaser may not direct the investment

  7  of his or her contribution to the trust fund, and a contract

  8  beneficiary may not direct the contribution made on his or her

  9  behalf to the trust fund. Board members and employees of the

10  board are not prohibited from purchasing advance payment

11  contracts by virtue of their fiduciary responsibilities as

12  members of the board or official duties as employees of the

13  board.

14         (d)  Solicit proposals and contract, pursuant to s.

15  287.057, for the marketing of the Florida Prepaid College

16  Program. The entity designated pursuant to this paragraph

17  shall serve as a centralized marketing agent for the program

18  and shall be solely responsible for the marketing of the

19  program. Any materials produced for the purpose of marketing

20  the program shall be submitted to the board for review. No

21  such materials shall be made available to the public before

22  the materials are approved by the board. Any educational

23  institution may distribute marketing materials produced for

24  the program; however, all such materials shall have been

25  approved by the board prior to distribution. Neither the state

26  nor the board shall be liable for misrepresentation of the

27  program by a marketing agent.

28         (e)  Solicit proposals and contract, pursuant to s.

29  287.057, for a trustee services firm to select and supervise

30  investment programs on behalf of the board. The goals of the

31  board in selecting a trustee services firm shall be to obtain

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  1  the highest standards of professional trustee services, to

  2  allow all qualified firms interested in providing such

  3  services equal consideration, and to provide such services to

  4  the state at no cost and to the purchasers at the lowest cost

  5  possible. The trustee services firm shall agree to meet the

  6  obligations of the board to qualified beneficiaries if moneys

  7  in the fund fail to offset the obligations of the board as a

  8  result of imprudent selection or supervision of investment

  9  programs by such firm. Evaluations of proposals submitted

10  pursuant to this paragraph shall include, but not be limited

11  to, the following criteria:

12         1.  Adequacy of trustee services for supervision and

13  management of the program, including current operations and

14  staff organization and commitment of management to the

15  proposal.

16         2.  Capability to execute program responsibilities

17  within time and regulatory constraints.

18         3.  Past experience in trustee services and current

19  ability to maintain regular and continuous interactions with

20  the board, records administrator, and product provider.

21         4.  The minimum purchaser participation assumed within

22  the proposal and any additional requirements of purchasers.

23         5.  Adequacy of technical assistance and services

24  proposed for staff.

25         6.  Adequacy of a management system for evaluating and

26  improving overall trustee services to the program.

27         7.  Adequacy of facilities, equipment, and electronic

28  data processing services.

29         8.  Detailed projections of administrative costs,

30  including the amount and type of insurance coverage, and

31  detailed projections of total costs.

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  1         (f)  Solicit proposals and contract, pursuant to s.

  2  287.057, for product providers to develop investment

  3  portfolios on behalf of the board to achieve the purposes of

  4  this section. Product providers shall be limited to authorized

  5  insurers as defined in s. 624.09, banks as defined in s.

  6  658.12, associations as defined in s. 665.012, authorized

  7  Securities and Exchange Commission investment advisers, and

  8  investment companies as defined in the Investment Company Act

  9  of 1940. All product providers shall have their principal

10  place of business and corporate charter located and registered

11  in the United States. In addition, each product provider shall

12  agree to meet the obligations of the board to qualified

13  beneficiaries if moneys in the fund fail to offset the

14  obligations of the board as a result of imprudent investing by

15  such provider. Each authorized insurer shall evidence superior

16  performance overall on an acceptable level of surety in

17  meeting its obligations to its policyholders and other

18  contractual obligations. Only qualified public depositories

19  approved by the Insurance Commissioner and Treasurer shall be

20  eligible for board consideration. Each investment company

21  shall provide investment plans as specified within the request

22  for proposals. The goals of the board in selecting a product

23  provider company shall be to provide all purchasers with the

24  most secure, well-diversified, and beneficially administered

25  postsecondary education expense plan possible, to allow all

26  qualified firms interested in providing such services equal

27  consideration, and to provide such services to the state at no

28  cost and to the purchasers at the lowest cost possible.

29  Evaluations of proposals submitted pursuant to this paragraph

30  shall include, but not be limited to, the following criteria:

31

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  1         1.  Fees and other costs charged to purchasers that

  2  affect account values or operational costs related to the

  3  program.

  4         2.  Past and current investment performance, including

  5  investment and interest rate history, guaranteed minimum rates

  6  of interest, consistency of investment performance, and any

  7  terms and conditions under which moneys are held.

  8         3.  Past experience and ability to provide timely and

  9  accurate service in the areas of records administration,

10  benefit payments, investment management, and complaint

11  resolution.

12         4.  Financial history and current financial strength

13  and capital adequacy to provide products, including operating

14  procedures and other methods of protecting program assets.

15         (7)  FLORIDA PREPAID COLLEGE BOARD; POWERS.--The board

16  shall have the powers necessary or proper to carry out the

17  provisions of this section, including, but not limited to, the

18  power to:

19         (a)  Adopt an official seal and rules.

20         (b)  Sue and be sued.

21         (c)  Make and execute contracts and other necessary

22  instruments.

23         (d)  Establish agreements or other transactions with

24  federal, state, and local agencies, including state

25  universities and community colleges.

26         (e)  Invest funds not required for immediate

27  disbursement.

28         (f)  Appear in its own behalf before boards,

29  commissions, or other governmental agencies.

30         (g)  Hold, buy, and sell any instruments, obligations,

31  securities, and property determined appropriate by the board.

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  1         (h)  Require a reasonable length of state residence for

  2  qualified beneficiaries.

  3         (i)  Restrict the number of participants in the

  4  community college plan, university plan, and dormitory

  5  residence plan, respectively. However, any person denied

  6  participation solely on the basis of such restriction shall be

  7  granted priority for participation during the succeeding year.

  8         (j)  Segregate contributions and payments to the fund

  9  into various accounts and funds.

10         (k)  Contract for necessary goods and services, employ

11  necessary personnel, and engage the services of private

12  consultants, actuaries, managers, legal counsel, and auditors

13  for administrative or technical assistance.

14         (l)  Solicit and accept gifts, grants, loans, and other

15  aids from any source or participate in any other way in any

16  government program to carry out the purposes of this section.

17         (m)  Require and collect administrative fees and

18  charges in connection with any transaction and impose

19  reasonable penalties, including default, for delinquent

20  payments or for entering into an advance payment contract on a

21  fraudulent basis.

22         (n)  Procure insurance against any loss in connection

23  with the property, assets, and activities of the fund or the

24  board.

25         (o)  Impose reasonable time limits on use of the

26  tuition benefits provided by the program. However, any such

27  limitation shall be specified within the advance payment

28  contract.

29         (p)  Delineate the terms and conditions under which

30  payments may be withdrawn from the fund and impose reasonable

31  fees and charges for such withdrawal. Such terms and

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  1  conditions shall be specified within the advance payment

  2  contract.

  3         (q)  Provide for the receipt of contributions in lump

  4  sums or installment payments.

  5         (r)  Require that purchasers of advance payment

  6  contracts verify, under oath, any requests for contract

  7  conversions, substitutions, transfers, cancellations, refund

  8  requests, or contract changes of any nature. Verification

  9  shall be accomplished as authorized and provided for in s.

10  92.525(1)(a).

11         (s)  Delegate responsibility for administration of the

12  comprehensive investment plan required in paragraph (6)(c) to

13  a person the board determines to be qualified. Such person

14  shall be compensated by the board. Directly or through such

15  person, the board may contract with a private corporation or

16  institution to provide such services as may be a part of the

17  comprehensive investment plan or as may be deemed necessary or

18  proper by the board or such person, including, but not limited

19  to, providing consolidated billing, individual and collective

20  recordkeeping and accountings, and asset purchase, control,

21  and safekeeping.

22         (t)  Endorse insurance coverage written exclusively for

23  the purpose of protecting advance payment contracts, and the

24  purchasers and beneficiaries thereof, which may be issued in

25  the form of a group life policy and which is exempt from the

26  provisions of part V of chapter 627.

27         (u)  Solicit proposals and contract, pursuant to s.

28  287.057, for the services of a records administrator. The

29  goals of the board in selecting a records administrator shall

30  be to provide all purchasers with the most secure,

31  well-diversified, and beneficially administered postsecondary

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  1  education expense plan possible, to allow all qualified firms

  2  interested in providing such services equal consideration, and

  3  to provide such services to the state at no cost and to the

  4  purchasers at the lowest cost possible. Evaluations of

  5  proposals submitted pursuant to this paragraph shall include,

  6  but not be limited to, the following criteria:

  7         1.  Fees and other costs charged to purchasers that

  8  affect account values or operational costs related to the

  9  program.

10         2.  Past experience in records administration and

11  current ability to provide timely and accurate service in the

12  areas of records administration, audit and reconciliation,

13  plan communication, participant service, and complaint

14  resolution.

15         3.  Sufficient staff and computer capability for the

16  scope and level of service expected by the board.

17         4.  Financial history and current financial strength

18  and capital adequacy to provide administrative services

19  required by the board.

20         (v)  Establish other policies, procedures, and criteria

21  to implement and administer the provisions of this section.

22         (w)  Adopt procedures to govern contract dispute

23  proceedings between the board and its vendors.

24         (8)  QUALIFIED STATE TUITION PROGRAM

25  STATUS.--Notwithstanding any other provision of this section,

26  the board may adopt rules necessary to enable the program to

27  retain its status as a "qualified state tuition program" in

28  order to maintain its tax exempt status or other similar

29  status of the program, purchasers, and qualified beneficiaries

30  under the Internal Revenue Code of 1986, as defined in s.

31  220.03(1). The board shall inform purchasers of changes to the

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  1  tax or securities status of contracts purchased through the

  2  program.

  3         (9)  PREPAID COLLEGE PLANS.--At a minimum, the board

  4  shall make advance payment contracts available for two

  5  independent plans to be known as the community college plan

  6  and the university plan. The board may also make advance

  7  payment contracts available for a dormitory residence plan.

  8         (a)1.  Through the community college plan, the advance

  9  payment contract shall provide prepaid registration fees for a

10  specified number of undergraduate semester credit hours not to

11  exceed the average number of hours required for the conference

12  of an associate degree. The cost of participation in the

13  community college plan shall be based primarily on the average

14  current and projected registration fees within the Florida

15  Community College System and the number of years expected to

16  elapse between the purchase of the plan on behalf of a

17  qualified beneficiary and the exercise of the benefits

18  provided in the plan by such beneficiary. Qualified

19  beneficiaries shall bear the cost of any laboratory fees

20  associated with enrollment in specific courses. Each qualified

21  beneficiary shall be classified as a resident for tuition

22  purposes, pursuant to s. 240.1201, regardless of his or her

23  actual legal residence.

24         2.  Effective July 1, 1998, the board may provide

25  advance payment contracts for additional fees delineated in s.

26  240.35, not to exceed the average number of hours required for

27  the conference of an associate degree, in conjunction with

28  advance payment contracts for registration fees. The cost of

29  purchasing such fees shall be based primarily on the average

30  current and projected fees within the Florida Community

31  College System and the number of years expected to elapse

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  1  between the purchase of the plan on behalf of the beneficiary

  2  and the exercise of benefits provided in the plan by such

  3  beneficiary. Community college plan contracts purchased prior

  4  to July 1, 1998, shall be limited to the payment of

  5  registration fees as defined in subsection (2).

  6         (b)1.  Through the university plan, the advance payment

  7  contract shall provide prepaid registration fees for a

  8  specified number of undergraduate semester credit hours not to

  9  exceed the average number of hours required for the conference

10  of a baccalaureate degree. The cost of participation in the

11  university plan shall be based primarily on the current and

12  projected registration fees within the State University System

13  and the number of years expected to elapse between the

14  purchase of the plan on behalf of a qualified beneficiary and

15  the exercise of the benefits provided in the plan by such

16  beneficiary. Qualified beneficiaries shall bear the cost of

17  any laboratory fees associated with enrollment in specific

18  courses. Each qualified beneficiary shall be classified as a

19  resident for tuition purposes pursuant to s. 240.1201,

20  regardless of his or her actual legal residence.

21         2.  Effective July 1, 1998, the board may provide

22  advance payment contracts for additional fees delineated in s.

23  240.235(1), for a specified number of undergraduate semester

24  credit hours not to exceed the average number of hours

25  required for the conference of a baccalaureate degree, in

26  conjunction with advance payment contracts for registration

27  fees. Such contracts shall provide prepaid coverage for the

28  sum of such fees, to a maximum of 45 percent of the cost of

29  registration fees. The costs of purchasing such fees shall be

30  based primarily on the average current and projected cost of

31  these fees within the State University System and the number

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  1  of years expected to elapse between the purchase of the plan

  2  on behalf of the qualified beneficiary and the exercise of the

  3  benefits provided in the plan by such beneficiary. University

  4  plan contracts purchased prior to July 1, 1998, shall be

  5  limited to the payment of registration fees as defined in

  6  subsection (2).

  7         (c)  Through the dormitory residence plan, the advance

  8  payment contract may provide prepaid housing fees for a

  9  maximum of 10 semesters of full-time undergraduate enrollment

10  in a state university. Dormitory residence plans shall be

11  purchased in increments of 2 semesters. The cost of

12  participation in the dormitory residence plan shall be based

13  primarily on the average current and projected housing fees

14  within the State University System and the number of years

15  expected to elapse between the purchase of the plan on behalf

16  of a qualified beneficiary and the exercise of the benefits

17  provided in the plan by such beneficiary. Qualified

18  beneficiaries shall have the highest priority in the

19  assignment of housing within university residence halls.

20  Qualified beneficiaries shall bear the cost of any additional

21  elective charges such as laundry service or long-distance

22  telephone service. Each state university may specify the

23  residence halls or other university-held residences eligible

24  for inclusion in the plan. In addition, any state university

25  may request immediate termination of a dormitory residence

26  contract based on a violation or multiple violations of rules

27  of the residence hall or other university-held residences. In

28  the event that sufficient housing is not available for all

29  qualified beneficiaries, the board shall refund the purchaser

30  or qualified beneficiary an amount equal to the fees charged

31  for dormitory residence during that semester. If a qualified

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  1  beneficiary fails to be admitted to a state university or

  2  chooses to attend a community college that operates one or

  3  more dormitories or residency opportunities, or has one or

  4  more dormitories or residency opportunities operated by the

  5  community college direct-support organization, the qualified

  6  beneficiary may transfer or cause to have transferred to the

  7  community college, or community college direct-support

  8  organization, the fees associated with dormitory residence.

  9  Dormitory fees transferred to the community college or

10  community college direct-support organization may not exceed

11  the maximum fees charged for state university dormitory

12  residence for the purposes of this section, or the fees

13  charged for community college or community college

14  direct-support organization dormitories or residency

15  opportunities, whichever is less.

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

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

18  qualified beneficiary may apply the benefits of an advance

19  payment contract toward:

20         (a)  Any eligible independent college or university. An

21  independent college or university that is located and

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

23  accredited by the Commission on Colleges of the Southern

24  Association of Colleges and Schools or the Accrediting Council

25  for Independent Colleges and Schools Accrediting Commission of

26  the Association of Independent Colleges and Schools, and that

27  confers degrees as defined in s. 246.021, is eligible for such

28  application. The board shall transfer, or cause to have

29  transferred, to the eligible independent college or university

30  designated by the qualified beneficiary an amount not to

31  exceed the redemption value of the advance payment contract at

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  1  within a state postsecondary institution. If the cost of

  2  registration or housing fees at the independent college or

  3  university is less than the corresponding fees at a state

  4  postsecondary institution, the amount transferred shall not

  5  exceed the actual cost of registration or housing fees. A

  6  transfer authorized under this paragraph may not exceed the

  7  number of semester credit hours or semesters of dormitory

  8  residence contracted on behalf of a qualified beneficiary.

  9         (b)  An eligible out-of-state college or university. An

10  out-of-state college or university that is not for profit and

11  is accredited by a regional accrediting association, and that

12  confers degrees, is eligible for such application. The board

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

14  exceed the redemption value of the advance payment contract at

15  a state postsecondary institution or the original purchase

16  price plus 5 percent compounded interest, whichever is less,

17  after assessment of a reasonable transfer fee. If the cost of

18  registration or housing fees charged the qualified beneficiary

19  at the eligible out-of-state college or university is less

20  than this calculated amount, the amount transferred shall not

21  exceed the actual cost of registration or housing fees. Any

22  remaining amount shall be transferred in subsequent semesters

23  until the transfer value is depleted. A transfer authorized

24  under this paragraph may not exceed the number of semester

25  credit hours or semesters of dormitory residence contracted on

26  behalf of a qualified beneficiary.

27         (c)  An applied technology diploma program or

28  vocational certificate program conducted by a community

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

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

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

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  1  technical center designated by the qualified beneficiary an

  2  amount not to exceed the redemption value of the advance

  3  payment contract within a state postsecondary institution. If

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

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

  6  at a state postsecondary institution, the amount transferred

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

  8  authorized under this paragraph may not exceed the number of

  9  semester credit hours contracted on behalf of a qualified

10  beneficiary.

11

12  Notwithstanding any other provision in this section, an

13  institution must be an "eligible educational institution"

14  under s. 529 of the Internal Revenue Code to be eligible for

15  the transfer of advance payment contract benefits.

16         (11)  ADVANCE PAYMENT CONTRACTS; CONTENTS.--The board

17  shall construct advance payment contracts for registration and

18  may construct advance payment contracts for dormitory

19  residence as provided in this section. Advance payment

20  contracts constructed for the purposes of this section shall

21  be exempt from chapter 517 and the Florida Insurance Code.

22  Such contracts shall include, but not be limited to, the

23  following:

24         (a)  The amount of the payment or payments and the

25  number of payments required from a purchaser on behalf of a

26  qualified beneficiary.

27         (b)  The terms and conditions under which purchasers

28  shall remit payments, including, but not limited to, the date

29  or dates upon which each payment shall be due.

30         (c)  Provisions for late payment charges and for

31  default.

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  1         (d)  Provisions for penalty fees for withdrawals from

  2  the fund.

  3         (e)  Except for an advance payment contract entered

  4  into pursuant to subsection (22), the name and date of birth

  5  of the qualified beneficiary on whose behalf the contract is

  6  drawn and the terms and conditions under which another person

  7  may be substituted as the qualified beneficiary.

  8         (f)  The name of any person who may terminate the

  9  contract. The terms of the contract shall specify whether the

10  contract may be terminated by the purchaser, the qualified

11  beneficiary, a specific designated person, or any combination

12  of these persons.

13         (g)  The terms and conditions under which a contract

14  may be terminated, modified, or converted, the name of the

15  person entitled to any refund due as a result of termination

16  of the contract pursuant to such terms and conditions, and the

17  amount of refund, if any, due to the person so named.

18         (h)  The number of semester credit hours or semesters

19  of dormitory residence contracted by the purchaser.

20         (i)  The state postsecondary system toward which the

21  contracted credit hours or semesters of dormitory residence

22  will be applied.

23         (j)  The assumption of a contractual obligation by the

24  board to the qualified beneficiary to provide for a specified

25  number of semester credit hours of undergraduate instruction

26  at a state postsecondary institution, not to exceed the

27  average number of credit hours required for the conference of

28  the degree that corresponds to the plan purchased on behalf of

29  the qualified beneficiary or to provide for a specified number

30  of semesters of dormitory residence, not to exceed the number

31

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  1  of semesters of full-time enrollment required for the

  2  conference of a baccalaureate degree.

  3         (k)  Other terms and conditions deemed by the board to

  4  be necessary or proper.

  5         (12)  DURATION OF BENEFITS; ADVANCE PAYMENT

  6  CONTRACT.--An advance payment contract may provide that

  7  contracts which have not been terminated or the benefits

  8  exercised within a specified period of time shall be

  9  considered terminated.  Time expended by a qualified

10  beneficiary as an active duty member of any of the armed

11  services of the United States shall be added to the period of

12  time specified pursuant to this subsection.  No purchaser or

13  qualified beneficiary whose advance payment contract is

14  terminated pursuant to this subsection shall be entitled to a

15  refund.  The board shall retain any moneys paid by the

16  purchaser for an advance payment contract that has been

17  terminated in accordance with this subsection.  Such moneys

18  retained by the board are exempt from chapter 717, and such

19  retained moneys must be used by the board to further the

20  purposes of this section.

21         (13)  REFUNDS.--

22         (a)  Except as provided in paragraphs (b), and (c), and

23  (f), no refund shall exceed the amount paid into the fund by

24  the purchaser.

25         (b)  If the beneficiary is awarded a scholarship, the

26  terms of which cover the benefits included in the advance

27  payment contracts, moneys paid for the purchase of the advance

28  payment contracts shall be refunded returned to the purchaser

29  in semester installments coinciding with the matriculation by

30  the beneficiary in an amount which, in total, does not exceed

31  the redemption value of the advance payment contract at a

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  1  state postsecondary institution amounts of either the original

  2  purchase price plus 5 percent compounded interest, or the

  3  current rates at state postsecondary institutions, whichever

  4  is less.

  5         (c)  In the event of the death or total disability of

  6  the beneficiary, moneys paid for the purchase of advance

  7  payment contracts shall be refunded returned to the purchaser

  8  in an amount not to exceed the redemption value of the advance

  9  payment contract at a state postsecondary institution together

10  with 5 percent compounded interest, or the current rates at

11  state postsecondary institutions, whichever is less.

12         (d)  If an advance payment contract is converted from

13  one registration plan to a plan of lesser value, the amount

14  refunded shall not exceed the difference between the amount

15  paid for the original contract and the amount that would have

16  been paid for the contract to which the plan is converted had

17  the converted plan been purchased under the same payment plan

18  at the time the original advance payment contract was

19  executed.

20         (e)  No refund shall be authorized through an advance

21  payment contract for any school year partially attended but

22  not completed.  For purposes of this section, a school year

23  partially attended but not completed shall mean any one

24  semester whereby the student is still enrolled at the

25  conclusion of the official drop-add period, but withdraws

26  before the end of such semester. If a beneficiary does not

27  complete a community college plan or university plan for

28  reasons other than specified in paragraph (c), the purchaser

29  shall receive a refund of the amount paid into the fund for

30  the remaining unattended years of the advance payment contract

31  pursuant to rules promulgated by the board.

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  1         (f)  Benefits purchased under the Florida Prepaid

  2  College Program shall be permitted to roll over to a college

  3  savings program, as defined under s. 529 of the United States

  4  Internal Revenue Code, relating to qualified state tuition

  5  programs. The board shall transfer, or cause to have

  6  transferred, an amount not to exceed the redemption value of

  7  the advance payment contract at a state postsecondary

  8  institution in Florida at the time of the rollover, after

  9  assessment of a reasonable transfer fee.

10         (14)  CONFIDENTIALITY OF ACCOUNT

11  INFORMATION.--Information that identifies the purchasers or

12  beneficiaries of any plan promulgated under this section and

13  their advance payment account activities is exempt from the

14  provisions of s. 119.07(1). However, the board may authorize

15  the program's records administrator to release such

16  information to a community college, college, or university in

17  which a beneficiary may enroll or is enrolled. Community

18  colleges, colleges, and universities shall maintain such

19  information as exempt from the provisions of s. 119.07(1).

20         (15)  OBLIGATIONS OF BOARD; PAYMENT.--The state shall

21  agree to meet the obligations of the board to qualified

22  beneficiaries if moneys in the fund fail to offset the

23  obligations of the board. The Legislature shall appropriate to

24  the Florida Prepaid College Trust Fund the amount necessary to

25  meet the obligations of the board to qualified beneficiaries.

26         (16)  ASSETS OF THE FUND; EXPENDITURE PRIORITY.--The

27  assets of the fund shall be maintained, invested, and expended

28  solely for the purposes of this section and shall not be

29  loaned, transferred, or otherwise used by the state for any

30  purpose other than the purposes of this section.  This

31  subsection shall not be construed to prohibit the board from

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  1  investing in, by purchase or otherwise, bonds, notes, or other

  2  obligations of the state or an agency or instrumentality of

  3  the state. Unless otherwise specified by the board, assets of

  4  the fund shall be expended in the following order of priority:

  5         (a)  To make payments to state postsecondary

  6  institutions on behalf of qualified beneficiaries.

  7         (b)  To make refunds upon termination of advance

  8  payment contracts.

  9         (c)  To pay the costs of program administration and

10  operations.

11         (17)  EXEMPTION FROM CLAIMS OF CREDITORS.--Moneys paid

12  into or out of the fund by or on behalf of a purchaser or

13  qualified beneficiary of an advance payment contract made

14  under this section, which contract has not been terminated,

15  are exempt, as provided by s. 222.22, from all claims of

16  creditors of the purchaser or the beneficiary. Neither moneys

17  paid into the program nor benefits accrued through the program

18  may be pledged for the purpose of securing a loan.

19         (18)  PAYROLL DEDUCTION AUTHORITY.--The state or any

20  state agency, county, municipality, or other political

21  subdivision may, by contract or collective bargaining

22  agreement, agree with any employee to remit payments toward

23  advance payment contracts through payroll deductions made by

24  the appropriate officer or officers of the state, state

25  agency, county, municipality, or political subdivision.  Such

26  payments shall be held and administered in accordance with

27  this section.

28         (19)  DISCLAIMER.--Nothing in this section shall be

29  construed as a promise or guarantee that a qualified

30  beneficiary will be admitted to a state postsecondary

31  institution or to a particular state postsecondary

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  1  institution, will be allowed to continue enrollment at a state

  2  postsecondary institution after admission, or will be

  3  graduated from a state postsecondary institution.

  4         (20)  PROGRAM TERMINATION.--In the event that the state

  5  determines the program to be financially infeasible, the state

  6  may discontinue the provision of the program.  Any qualified

  7  beneficiary who has been accepted by and is enrolled or is

  8  within 5 years of enrollment in an eligible independent

  9  college or university or state postsecondary institution shall

10  be entitled to exercise the complete benefits for which he or

11  she has contracted. All other contract holders shall receive a

12  refund of the amount paid in and an additional amount in the

13  nature of interest at a rate that corresponds, at a minimum,

14  to the prevailing interest rates for savings accounts provided

15  by banks and savings and loan associations.

16         (21)  ANNUAL REPORT.--The board shall annually prepare

17  or cause to be prepared a report setting forth in appropriate

18  detail an accounting of the fund and a description of the

19  financial condition of the program at the close of each fiscal

20  year. Such report shall be submitted to the President of the

21  Senate, the Speaker of the House of Representatives, and

22  members of the State Board of Education on or before March 31

23  each year. In addition, the board shall make the report

24  available to purchasers of advance payment contracts. The

25  board shall provide to the Board of Regents and the State

26  Board of Community Colleges, by March 31 each year, complete

27  advance payment contract sales information, including

28  projected postsecondary enrollments of qualified

29  beneficiaries. The accounts of the fund shall be subject to

30  annual audits by the Auditor General or his or her designee.

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

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

  2  organization which is:

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

  4  under the provisions of chapter 617 and approved by the

  5  Secretary of State.

  6         2.  Organized and operated exclusively to receive,

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

  8  to or for the benefit of the program.

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

10  certified to be operating in a manner consistent with the

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

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

13  the program.

14         (b)  The direct-support organization shall operate

15  under written contract with the board. The contract must

16  provide for:

17         1.  Approval of the articles of incorporation and

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

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

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

21  board.

22         3.  An annual financial and compliance audit of its

23  financial accounts and records by an independent certified

24  public accountant in accordance with rules adopted by the

25  board.

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

27  organization is complying with the terms of the contract and

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

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

30  certification must be made annually and reported in the

31  official minutes of a meeting of the board.

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

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

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

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

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

  6  exist.

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

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

  9  following year.

10         7.  The disclosure of material provisions of the

11  contract and of the distinction between the board and the

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

13  or bequests, and such disclosure on all promotional and

14  fundraising publications.

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

16  financial accounts and records of the direct-support

17  organization must be performed by an independent certified

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

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

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

21  The board and Auditor General shall have the authority to

22  require and receive from the organization or its independent

23  auditor any detail or supplemental data relative to the

24  operation of the organization.

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

26  anonymous shall be confidential and exempt from the provisions

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

28  Constitution, and such anonymity shall be maintained in the

29  auditor's report. Information received by the organization

30  that is otherwise confidential or exempt by law shall retain

31  such status. Any sensitive, personal information regarding

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  1  contract beneficiaries, including their identities, is exempt

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

  3  the State Constitution.

  4         (e)  The chair and the executive director of the board

  5  shall be directors of the direct-support organization and

  6  shall jointly name, at a minimum, three other individuals to

  7  serve as directors of the organization.

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

  9  organization established in this subsection to use program

10  property, except money, and use facilities and personal

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

12  direct-support organization does not provide equal employment

13  opportunities to all persons regardless of race, color,

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

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

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

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

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

19  board shall adopt rules prescribing the procedures by which

20  the direct-support organization is governed and any conditions

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

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

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

24  organization which have been allocated for the purchase of

25  advance payment contracts for scholarships with receipts for

26  advance payment contracts.

27         Section 25.  Section 240.6053, Florida Statutes, is

28  created to read:

29         240.6053  Academic program contracts.--

30         (1)  Academic program contracts with independent

31  institutions recommended by the Postsecondary Education

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  1  Planning Commission pursuant to s. 240.147(4), and approved by

  2  the State Board of Education pursuant to s. 229.053(2), shall

  3  be administered by the Department of Education.

  4         (2)  Funding for such contracts shall be based on the

  5  average cost to the state to provide similar programs in the

  6  State University System or an amount specified in the General

  7  Appropriations Act.

  8         (3)  Priority for academic program contract support

  9  shall be given to students with demonstrated financial need.

10  To be eligible for such support, a student shall meet the

11  general requirements for student eligibility for state

12  financial aid pursuant to s. 240.404.

13         (4)  The tuition and fees assessed students supported

14  through an academic program contract shall not exceed the

15  amount required to pay the average matriculation and fees for

16  a comparable program at a state university.

17         (5)  The amount an institution receives per student for

18  funding pursuant to this section, plus the tuition and fees

19  paid by the student, plus the value of the Florida Resident

20  Access Grant received by the student shall not exceed the full

21  cost per student to the state of a similar program in the

22  State University System.

23         (6)  Institutions receiving support pursuant to this

24  section shall annually submit to the department data on

25  performance measures, including, but not limited to, degrees

26  granted, graduation rates, licensure or certification rates of

27  graduates where applicable, and employment in Florida.

28         Section 26.  Section 295.02, Florida Statutes, is

29  amended to read:

30         295.02  Use of funds; age, etc.--

31

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  1         (1)  All sums appropriated and expended under this

  2  chapter shall be used to pay tuition and registration fees as

  3  defined by the Department of Education, board, and room rent

  4  and to buy books and supplies for the children of:

  5         (a)  Deceased or disabled veterans or service members,

  6  as defined and limited in s. 295.01, s. 295.016, s. 295.017,

  7  s. 295.018, s. 295.019, or s. 295.0195; or, or of

  8         (b)  Parents classified as prisoners of war or missing

  9  in action, as defined and limited in s. 295.015., who are

10         (2)  Such children must be between the ages of 16 and

11  22 years and who are in attendance at:

12         (a)  A state-supported institution of higher learning,

13  including a community college or vocational-technical school;

14  or.

15         (b)  A postsecondary education institution eligible to

16  participate in the Florida Bright Futures Scholarship Program.

17  A student attending an eligible independent postsecondary

18  education institution may receive an award equivalent to the

19  average matriculation and fees calculated for full-time

20  attendance at a public postsecondary education institution at

21  the comparable level.

22

23  Any child having entered upon a course of training or

24  education under the provisions of this chapter, consisting of

25  a course of not more than 4 years, and arriving at the age of

26  22 years before the completion of such course may continue the

27  course and receive all benefits of the provisions of this

28  chapter until the course is completed.

29         (3)  The Department of Education shall administer this

30  educational program subject to rules regulations of the State

31

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  1  Board of Education department. The state board is authorized

  2  to adopt rules to implement the provisions of this program.

  3         Section 27.  Except as otherwise provided herein, this

  4  act shall take effect July 1, 2001.

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