House Bill hb0463

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    Florida House of Representatives - 2001                 HB 463

        By Representative Baxley






  1                      A bill to be entitled

  2         An act relating to the Florida Prepaid College

  3         Program; amending s. 240.551, F.S.; revising

  4         the accreditation requirements for independent

  5         college or university eligibility purposes;

  6         clarifying that the amount of benefits

  7         transferred to an eligible independent college

  8         or university, an eligible out-of-state college

  9         or university, an applied technology diploma

10         program or vocational certificate program, or

11         refunded to a purchaser shall not exceed the

12         redemption value of the advance payment

13         contract at a Florida public postsecondary

14         education institution; providing an effective

15         date.

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

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19         Section 1.  Subsection (10), and paragraphs (b) and (c)

20  of subsection (13) of section 240.551, Florida Statutes, are

21  amended to read:

22         240.551  Florida Prepaid College Program.--

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

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

25  qualified beneficiary may apply the benefits of an advance

26  payment contract toward:

27         (a)  Any eligible independent college or university. An

28  independent college or university that is located and

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

30  accredited by the Commission on Colleges of the Southern

31  Association of Colleges and Schools or the Accrediting Council

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    Florida House of Representatives - 2001                 HB 463

    747-104-01






  1  for Commission of the Association of Independent Colleges and

  2  Schools, and that confers degrees as defined in s. 246.021, is

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

  4  cause to have transferred, to the eligible independent college

  5  or university designated by the qualified beneficiary an

  6  amount not to exceed the redemption value of the advance

  7  payment contract at within a Florida public state

  8  postsecondary education institution. If the cost of

  9  registration or housing fees at the independent college or

10  university is less than the corresponding fees at a state

11  postsecondary institution, the amount transferred shall not

12  exceed the actual cost of registration or housing fees. A

13  transfer authorized under this paragraph may not exceed the

14  number of semester credit hours or semesters of dormitory

15  residence contracted on behalf of a qualified beneficiary.

16         (b)  An eligible out-of-state college or university. An

17  out-of-state college or university that is not for profit and

18  is accredited by a regional accrediting association, and that

19  confers degrees, is eligible for such application. The board

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

21  exceed the redemption value of the advance payment contract at

22  a Florida public postsecondary education institution or the

23  original purchase price plus 5 percent compounded interest,

24  whichever is less, after assessment of a reasonable transfer

25  fee. If the cost of registration or housing fees charged the

26  qualified beneficiary at the eligible out-of-state college or

27  university is less than this calculated amount, the amount

28  transferred shall not exceed the actual cost of registration

29  or housing fees. Any remaining amount shall be transferred in

30  subsequent semesters until the transfer value is depleted. A

31  transfer authorized under this paragraph may not exceed the

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    Florida House of Representatives - 2001                 HB 463

    747-104-01






  1  number of semester credit hours or semesters of dormitory

  2  residence contracted on behalf of a qualified beneficiary.

  3         (c)  An applied technology diploma program or

  4  vocational certificate program conducted by a community

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

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

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

  8  technical center designated by the qualified beneficiary an

  9  amount not to exceed the redemption value of the advance

10  payment contract at within a Florida public state

11  postsecondary education institution. If the cost of the fees

12  charged by the college or center, as authorized in s. 239.117,

13  is less than the corresponding fees at a state postsecondary

14  institution, the amount transferred may not exceed the actual

15  cost of the fees. A transfer authorized under this paragraph

16  may not exceed the number of semester credit hours contracted

17  on behalf of a qualified beneficiary.

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19  Notwithstanding any other provision in this section, an

20  institution must be an "eligible educational institution"

21  under s. 529 of the Internal Revenue Code to be eligible for

22  the transfer of advance payment contract benefits.

23         (13)  REFUNDS.--

24         (b)  If the beneficiary is awarded a scholarship, the

25  terms of which cover the benefits included in the advance

26  payment contracts, moneys paid for the purchase of the advance

27  payment contracts shall be refunded returned to the purchaser

28  in semester installments coinciding with the matriculation by

29  the beneficiary in an amount which, in total, does not exceed

30  the redemption value of the advance payment contract at a

31  Florida public postsecondary education institution amounts of

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    Florida House of Representatives - 2001                 HB 463

    747-104-01






  1  either the original purchase price plus 5 percent compounded

  2  interest, or the current rates at state postsecondary

  3  institutions, whichever is less.

  4         (c)  In the event of the death or total disability of

  5  the beneficiary, moneys paid for the purchase of advance

  6  payment contracts shall be refunded returned to the purchaser

  7  in an amount not to exceed the redemption value of the advance

  8  payment contract at a Florida public postsecondary education

  9  institution together with 5 percent compounded interest, or

10  the current rates at state postsecondary institutions,

11  whichever is less.

12         Section 2.  This act shall take effect July 1, 2001.

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15                          HOUSE SUMMARY

16    Revises the accreditation requirements relating to
      independent college or university eligibility for
17    participation in the Florida Prepaid College Program.
      Clarifies that the amount of benefits transferred to an
18    eligible independent college or university, an eligible
      out-of-state college or university, an applied technology
19    diploma program or vocational certificate program, or
      refunded to a purchaser shall not exceed the redemption
20    value of the advance payment contract at a Florida public
      postsecondary education institution.
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