House Bill hb0463c1

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    Florida House of Representatives - 2001              CS/HB 463

        By the Committee on Colleges & Universities and
    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 a vocational certificate program or

11         refunded to a purchaser shall not exceed the

12         redemption value of the advance payment

13         contract at a state postsecondary institution;

14         providing an effective date.

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

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

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

20  amended to read:

21         240.551  Florida Prepaid College Program.--

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

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

24  qualified beneficiary may apply the benefits of an advance

25  payment contract toward:

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

27  independent college or university that is located and

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

29  accredited by the Commission on Colleges of the Southern

30  Association of Colleges and Schools or the Accrediting Council

31  for Commission of the Association of Independent Colleges and

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    Florida House of Representatives - 2001              CS/HB 463

    184-302-01






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

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

  3  cause to have transferred, to the eligible independent college

  4  or university designated by the qualified beneficiary an

  5  amount not to exceed the redemption value of the advance

  6  payment contract at within a state postsecondary institution.

  7  If the cost of registration or housing fees at the independent

  8  college or university is less than the corresponding fees at a

  9  state postsecondary institution, the amount transferred shall

10  not exceed the actual cost of registration or housing fees. A

11  transfer authorized under this paragraph may not exceed the

12  number of semester credit hours or semesters of dormitory

13  residence contracted on behalf of a qualified beneficiary.

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

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

16  is accredited by a regional accrediting association, and that

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

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

19  exceed the redemption value of the advance payment contract at

20  a state postsecondary institution or the original purchase

21  price plus 5 percent compounded interest, whichever is less,

22  after assessment of a reasonable transfer fee. If the cost of

23  registration or housing fees charged the qualified beneficiary

24  at the eligible out-of-state college or university is less

25  than this calculated amount, the amount transferred shall not

26  exceed the actual cost of registration or housing fees. Any

27  remaining amount shall be transferred in subsequent semesters

28  until the transfer value is depleted. A transfer authorized

29  under this paragraph may not exceed the number of semester

30  credit hours or semesters of dormitory residence contracted on

31  behalf of a qualified beneficiary.

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    Florida House of Representatives - 2001              CS/HB 463

    184-302-01






  1         (c)  An applied technology diploma program or

  2  vocational certificate program conducted by a community

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

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

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

  6  technical center designated by the qualified beneficiary an

  7  amount not to exceed the redemption value of the advance

  8  payment contract at within a state postsecondary institution.

  9  If the cost of the fees charged by the college or center, as

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

11  at a state postsecondary institution, the amount transferred

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

13  authorized under this paragraph may not exceed the number of

14  semester credit hours contracted on behalf of a qualified

15  beneficiary.

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17  Notwithstanding any other provision in this section, an

18  institution must be an "eligible educational institution"

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

20  the transfer of advance payment contract benefits.

21         (13)  REFUNDS.--

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

23  terms of which cover the benefits included in the advance

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

25  payment contracts shall be refunded returned to the purchaser

26  in semester installments coinciding with the matriculation by

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

28  the redemption value of the advance payment contract at a

29  state postsecondary institution amounts of either the original

30  purchase price plus 5 percent compounded interest, or the

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    Florida House of Representatives - 2001              CS/HB 463

    184-302-01






  1  current rates at state postsecondary institutions, whichever

  2  is less.

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

  4  the beneficiary, moneys paid for the purchase of advance

  5  payment contracts shall be refunded returned to the purchaser

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

  7  payment contract at a state postsecondary institution together

  8  with 5 percent compounded interest, or the current rates at

  9  state postsecondary institutions, whichever is less.

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

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