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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